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Hiring in Bulgaria

Employee background checks in Bulgaria

Hiring employees in Bulgaria

Language requirements in Bulgaria

Setting up payroll in Bulgaria

Grow your global team with CXC

Employer of record in Bulgaria

Expanding your business into Bulgaria presents significant opportunities, but understanding the country’s labour laws, payroll system, and compliance requirements can be challenging. Partnering with an Employer of Record (EoR) in Bulgaria provides a seamless solution, allowing you to hire and manage employees without the need to establish a local legal entity.

Bulgaria has a well-regulated labour market governed by the Bulgarian Labour Code, which outlines key employment rules, including working hours, contract types, social security contributions, and employee rights. Employers must also comply with minimum wage laws, which are updated annually, and provide mandatory benefits such as paid leave (minimum 20 days per year), sick leave, and maternity leave (410 days, partially covered by social security).

How an Employer of Record (EoR) helps

An EoR in Bulgaria takes care of all employment-related legal and administrative responsibilities, ensuring compliance with local regulations. This includes:

Drafting and managing compliant employment contracts.
Processing payroll and handling tax filings.
Managing social security and health insurance contributions.
Ensuring compliance with Bulgarian labour laws and EU directives.
Handling terminations and severance pay in accordance with legal requirements.

In this guide, we’ll cover everything you need to know about hiring in Bulgaria—from employment contracts and tax compliance to payroll management—helping you establish a strong, legally compliant presence in this dynamic and growing market.

Hiring in Bulgaria

When hiring in Bulgaria, understanding the legal framework and cultural nuances is crucial to ensure a smooth and compliant recruitment process.

Bulgaria’s Labour Code

Bulgaria’s Labour Code regulates employment relationships and ensures fair treatment for workers. Employers must adhere to its provisions regarding working hours, leave, and anti-discrimination measures.

Working hours in Bulgaria

The standard workweek consists of 40 hours, with a maximum of 8 hours per day.
Night shifts are capped at 7 hours per night, or 35 hours per week.
Overtime is permissible in certain cases but must comply with legal limits and compensation requirements.

Leave entitlements in Bulgaria

Employees are entitled to a minimum of 20 days of paid annual leave.
Unpaid leave of up to 30 days per year may be granted upon request.
Maternity leave is provided for mothers, with additional parental leave for fathers, subject to the mother’s consent.

Anti-discrimination policies in Bulgaria

Bulgarian law strictly prohibits both direct and indirect discrimination in employment.
A dedicated Commission for Protection against Discrimination enforces these regulations.
Violations may result in administrative fines and other legal consequences.

Hiring process in Bulgaria

The hiring process in Bulgaria follows a structured approach to ensure compliance with labour laws and facilitate a smooth onboarding experience for employees.

Job posting and recruitment: Employers typically advertise vacancies on job portals, company websites, and through recruitment agencies.
Interview and selection: Candidates undergo interviews and assessments before receiving a formal job offer.
Employment contract: Once a candidate accepts an offer, an employment contract is prepared and signed by both parties.
Registration with authorities: Employers must notify the National Revenue Agency (NRA) of the new hire by submitting a certified notification form.
Commencement of work: Employees must begin work within seven days after receiving a signed contract and the certified NRA notification. Failure to do so results in the contract’s dissolution.

Employment contract terms in Bulgaria

Employment contracts in Bulgaria must be in writing and outline key terms, including job responsibilities, salary, working hours, and benefits. Certain legal provisions ensure that employees receive fair treatment and protection under the law.

Contract commencement: The contract becomes legally binding when the employee starts work, which must be verified in writing.
Collective agreements: If a collective labour agreement exists before the signing of an individual contract, the individual terms must be more favourable to the employee. Otherwise, they will be deemed void.
Termination clauses: Contracts should specify notice periods, termination conditions, and severance entitlements, in line with Bulgarian employment law.

Cultural considerations in Bulgaria

Understanding workplace culture is essential when hiring in Bulgaria. The business environment blends professionalism with strong interpersonal relationships, influencing hiring decisions and employee retention.

Hierarchy and respect: Bulgarian workplaces often have a structured hierarchy, with respect for seniority and experience.
Work-life balance: Employees value a balance between work and personal life, making fair leave policies important.
Business communication: While professional, communication in Bulgaria tends to be direct yet warm, with an emphasis on building trust over time.
Bureaucratic procedures: Some administrative processes can be time-consuming, so employers should plan for potential delays in documentation and approvals.

Navigating the hiring process in Bulgaria requires a solid understanding of the Labour Code, employment contract requirements, and cultural expectations. By following local regulations and embracing workplace customs, employers can build strong, compliant teams that contribute to business success.

Employee background checks in Bulgaria

Ensuring that new hires meet the necessary legal and professional requirements is a key step in the recruitment process. Conducting a background check in Bulgaria helps employers verify candidate credentials and comply with local labour laws.

Pre-employment Bulgaria’s background checks

Employers in Bulgaria can conduct pre-employment background checks by requesting specific documents from applicants before signing an employment contract. These checks are typically used to confirm professional qualifications, identity, and health status.

Commonly required documents:

Medical certificate: Confirms the applicant’s general health status and ability to perform the job.
Qualification verification: Proof of professional qualifications or certifications required for the position.
Personal identification data: Limited personal details necessary for employee identification.
Criminal record certificate: Required only for certain job positions where mandated by law.

Employers must ensure that the background check process aligns with Bulgarian data protection laws, obtaining consent from candidates before collecting personal information.

Pre-employment medical checks in Bulgaria

Employers are responsible for organising and covering the cost of mandatory preliminary health checks for all employees before the start of their employment. These examinations verify the candidate’s physical and mental fitness for the role and are a prerequisite for entering an employment contract.

Pre-employment criminal record checks in Bulgaria

A criminal record check in Bulgaria is only necessary for specific job roles explicitly outlined in legislation. If required, candidates must provide a criminal record certificate issued by the relevant authorities. Employers cannot demand this document unless it is legally justified for the position.

Conducting a background check in Bulgaria is an important step in hiring the right candidate while ensuring compliance with employment laws. Employers must carefully balance verification requirements with data protection regulations, ensuring fair and transparent hiring practices.

Hiring employees in Bulgaria

When expanding a business, choosing the right employment model is crucial. Companies looking to hire workers in Bulgaria have several options, including full-time, part-time, independent contractors, and agency workers. Understanding the legal framework and best practices for hiring and onboarding in Bulgaria helps employers remain compliant while selecting the best staffing solution for their needs.

Hiring full-time and part-time employees in Bulgaria

Bulgarian labour law allows businesses to hire employees on either an indefinite or fixed-term basis. Both full-time and part-time employees are protected from discrimination based on their employment status and are entitled to fair treatment.

Full-time employees typically work 40 hours per week and are entitled to full employment benefits, including social security, paid leave, and health insurance contributions by the employer.
Part-time employees work fewer hours than full-time staff, with working hours and entitlements proportionate to their working time. They must receive the same hourly wage as full-time employees in similar roles, and their access to benefits should not be unfairly restricted.
Employers cannot deny part-time workers opportunities for career advancement, training, or promotions solely based on their reduced working hours.
Overtime regulations apply differently to part-time employees, who may be compensated for additional hours worked beyond their contractual obligation but may not exceed the legal maximum working hours.

Fixed-term contracts in Bulgaria

Fixed-term contracts are permitted under specific conditions, such as:

Employment for a specific period, not exceeding three years (e.g., seasonal, or project-based work).
For non-seasonal or long-term activities, a contract of at least one year may be signed.
Agreements related to professional qualification improvement or retraining.

A fixed-term contract automatically converts into an indefinite contract if the employee continues working for more than five days beyond the contract’s expiration without written objection from the employer. Employees under fixed-term contracts enjoy the same rights as those with indefinite contracts, meaning early termination is neither easier nor cheaper for employers.

Hiring independent contractors in Bulgaria

Businesses that need flexible workforce solutions may choose to hire contractors in Bulgaria. Independent contractors can be engaged directly or through a personal services company, offering flexibility in project-based work. However, companies should be aware of potential misclassification risks. If authorities determine that an independent contractor is functioning as an employee, the company may be liable for employment-related benefits, taxes, and penalties.

Hiring agency workers in Bulgaria

Another option for temporary staff hiring in Bulgaria is through employment agencies. Agency workers can be either employees or independent workers engaged through an agency. Bulgarian law requires that they receive equal treatment regarding pay and benefits compared to directly hired employees in similar roles.

Choosing the right employment model is key when looking to hire employees in Bulgaria. Whether engaging full-time staff, independent contractors, or agency workers, employers must navigate local labour laws to ensure compliance and efficiency.

Language requirements in Bulgaria

The language requirements in Bulgaria are a key consideration for employers looking to operate effectively in the country. Whether communicating with employees, drafting contracts, or engaging with local businesses, language plays a crucial role in professional interactions.

What are the official and most spoken languages in Bulgaria?

For those wondering, what is the official language in Bulgaria? The answer is Bulgarian. As the country’s sole official language, Bulgarian is used in government, education, and legal documentation. It is written in the Cyrillic alphabet and is the main language in Bulgaria spoken by the majority of the population.

Apart from Bulgarian, there are several most spoken languages in Bulgaria due to historical and cultural diversity. Some minority communities speak Turkish and Romani, while Russian and German are also understood by segments of the population.

English language in Bulgaria

While English is increasingly spoken, particularly in major cities and among younger generations, it is not as widely used in business or governmental settings. In Bulgaria, in sectors such as IT, tourism, and international trade, knowledge of English language is more prevalent. However, outside of these industries, proficiency in English can vary significantly.

Language requirements in employment contracts in Bulgaria

One important legal aspect for employers is that an employment contract must be furnished in writing to be valid. While contracts can be drafted in any language, they must contain at least the minimum legal details required by Bulgarian law. If a contract is modified, the changes must also be documented in writing, or an administrative penalty may be imposed.

Practical need for Bulgarian language skills

For effective workplace communication, especially in non-English-speaking environments, having a working knowledge of the language used in Bulgaria is highly recommended. Employees who interact with local authorities, customers, or suppliers may need at least basic Bulgarian proficiency to perform their roles effectively.

Employers should consider offering language training or hiring bilingual staff to bridge communication gaps and ensure smooth business operations in Bulgaria.

Setting up payroll in Bulgaria

Managing payroll in Bulgaria involves several legal, administrative, and compliance steps that employers must follow. Whether you are setting up a local entity or engaging employees as a foreign business, understanding the payroll framework is essential to ensure smooth operations and compliance with Bulgarian employment laws.

How to set up payroll in Bulgaria

To legally hire employees in Bulgaria, a company must first establish a local entity or register with the National Revenue Agency (NRA) if operating as a foreign employer. Employers are responsible for withholding pay-as-you-earn (PAYE) taxes, including social insurance contributions (both employer and employee portions) and personal income tax.

Personal income tax: Employees in Bulgaria are taxed at a flat rate of 10% on net salary.
Social security contributions: Employers contribute approximately 18–19% of the gross salary, while employees contribute around 13%.
Payroll cycle: Salaries are typically paid monthly, with payments made on the last working day of the month.
13th-month salary: There is no legal requirement for a 13th-month salary in Bulgaria.

Employers should also ensure compliance with employment contracts, statutory benefits, and local labour regulations.

Outsourcing payroll and HR in Bulgaria

Setting up and managing payroll in Bulgaria can be complex, particularly for foreign companies unfamiliar with local tax laws and labour regulations. Many businesses opt to outsource payroll and HR services to ensure compliance and efficiency.

Using HR and payroll software or engaging an Employer of Record (EoR) like CXC can help manage:

Payroll processing and tax withholdings.
Compliance with Bulgarian employment laws.
Social security contributions and reporting.
Employee benefits administration.

Outsourcing payroll allows businesses to focus on their core operations while ensuring that all payroll and benefits responsibilities are handled correctly. It also reduces the risk of errors, delays, or penalties due to non-compliance with Bulgarian employment regulations.

Employers looking to establish a seamless payroll system in Bulgaria should carefully evaluate their needs and consider the advantages of HR and payroll outsourcing for better efficiency and compliance.

Grow your global team with CXC

Expanding your business into Bulgaria presents new growth opportunities, but it also comes with its own set of challenges. Setting up a legal entity can be a time-consuming and expensive process and handling it alone may put your business at risk.

That’s where CXC can help. As a reliable Employer of Record (EoR) partner, we take the complexity out of hiring internationally. We handle everything from compliance with local labour laws and drafting employment contracts to seamless onboarding and offboarding, ensuring your expansion is smooth and hassle-free.

Looking to build your team in Bulgaria and beyond? Get in touch with our experts today to discover how we can support your business growth with confidence and compliance.

Read about EoR services

FAQ's

What are the options for hiring employees in Bulgaria?

Companies can hire employees in Bulgaria through their own local entity, employ them directly as a foreign employer where the required Bulgarian registrations are completed, or use an Employer of Record (EOR).

With a Bulgarian entity, the company becomes the local employer and manages employment contracts, payroll, tax, social security and statutory benefits itself. A foreign company may also be able to employ workers without incorporating locally, but it must complete the applicable Bulgarian employer, tax and social security registrations. This can include obtaining the necessary Bulgarian registration or service identifiers, registering as an insurer with the National Revenue Agency (NRA), arranging local payroll and completing the Employment Register entries required by the Labour Code. Whether further corporate registration is needed depends on the company’s activities and presence in Bulgaria.

Alternatively, an Employer of Record in Bulgaria can legally employ workers on the company’s behalf. The EOR manages the local employment contract, payroll, statutory contributions and employment administration, while the client manages the employee’s day-to-day work.

The employment contract must be in writing and contain the mandatory employment terms. Before work begins, the employee must receive the signed contract and evidence that the employment relationship has been properly entered in the NRA Employment Register. In summary, businesses have several ways to hire employees in Bulgaria. The right option depends on whether they already have a local entity and how much local employment administration they want to manage themselves.

Can a foreign company hire employees in Bulgaria without a local entity?

Yes. A foreign business can employ people in Bulgaria without incorporating its own Bulgarian subsidiary, provided it uses a legally workable employment structure. One route is registration as a foreign employer with the National Revenue Agency (NRA); another is using an EOR in Bulgaria that employs the worker locally.

Direct employment without a subsidiary is not the same as hiring without Bulgarian administration. The foreign employer may need an official Bulgarian identifier, registration as an insurer, an authorised filing arrangement, Bulgarian payroll and Employment Register access. It must also issue Bulgarian-compliant employment documents and fulfil the applicable tax, social-security, health and safety and record-keeping duties.

Under the EOR model, the overseas business does not become the employee’s Bulgarian legal employer. The EOR enters into the employment contract, operates local payroll, makes required tax and social-security filings and maintains the employment records. The client company remains responsible for the employee’s commercial role and day-to-day direction.

The legal documentation should allocate responsibilities clearly between the EOR and the client, including instructions, working time, reporting, workplace safety, confidentiality, data protection and termination processes. Mandatory employee rights cannot be reduced by the commercial agreement between the two businesses. Direct foreign-employer registration can suit businesses prepared to manage Bulgarian payroll and employment administration themselves. EOR services in Bulgaria are generally more relevant where the company wants local employment capability without building that infrastructure.

A local entity is not always necessary, but the chosen model still needs to satisfy Bulgarian employment, tax and social-security requirements.

How long does it take to hire an employee in Bulgaria?

Hiring an employee in Bulgaria can take a few days if the local employment setup is already in place, but several weeks or longer if a foreign company first needs to establish a Bulgarian entity.

Setting up for a first hire can involve incorporating the local company, completing tax and employer registrations, arranging payroll and social security administration, and preparing compliant employment documentation. These steps need to be completed before the company is ready to employ and pay staff locally.

A compliant onboarding process may also include confirming the employee’s right to work, obtaining personal and payroll information, completing any required pre-employment medical examination, arranging occupational health and safety documentation and entering the employment relationship in the NRA Employment Register. If the company already has this infrastructure, onboarding can move much faster once the candidate and employment terms are confirmed.

For businesses that do not have a Bulgarian entity and do not want to wait for the setup process, an Employer of Record in Bulgaria can often onboard an employee within a few days because the local employment and payroll infrastructure is already established.

This timeframe is an operational estimate rather than a statutory guarantee. The employee cannot start work until the written contract and required registration steps have been completed. Non-EU hires can take longer where work and residence authorisation is required. The immigration process may take several weeks or months depending on the employee’s nationality, qualifications and the applicable route, such as a single residence and work permit, EU Blue Card, seasonal-work authorisation or another statutory category.

How long does it take an employer of record to hire in Bulgaria?

An Employer of Record can often onboard an employee in Bulgaria within a few days if the person already has the right to work and the required information is ready.

The main advantage is that the company does not need to set up its own Bulgarian entity before hiring. The EOR already has the local setup needed to employ and pay the worker, including the employment contract, payroll and required registrations. This can save several weeks or longer for companies entering Bulgaria for the first time.

Hiring may take longer if documents are missing, employment terms are still being agreed, or the employee needs a Bulgarian work or residence permit. Additional preparation may also be required for regulated professions, roles involving particular health and safety risks or employment arrangements subject to a collective agreement.

Key takeaway: EOR services in Bulgaria can reduce hiring time from weeks to days by removing the need to establish your own local employment setup first. The fastest onboarding is normally achieved when the candidate’s right to work, job description, compensation, start date and required personal documents are confirmed before contract preparation begins.

When does it make sense to use an employer of record in Bulgaria?

An employer of record makes most sense when a company needs Bulgarian employees but does not yet need, or want, its own local employing entity. Typical cases include market testing, hiring a small initial team, securing a specialist quickly or supporting a time-limited expansion project.

Using an EOR in Bulgaria can also suit businesses whose internal HR and finance teams are not equipped to operate Bulgarian payroll, tax withholding, employment registration and statutory benefits. The model consolidates local employer administration while the client retains responsibility for the employee’s objectives, workload and business management.

As Bulgarian headcount and commercial operations grow, the company can compare the continuing benefits of the EOR model with establishing its own entity and internal employment infrastructure. The appropriate point for that review depends on headcount, operating plans, cost, internal resources and the functions performed in Bulgaria. Permanent-establishment and corporate-tax questions also remain separate from the employment model and require their own assessment.

An employer of record in Bulgaria is primarily a workforce-entry solution, with the strongest case where limited local infrastructure and controlled employment administration matter more than establishing a full local presence. It can also provide an effective bridge while a company evaluates or establishes a longer-term Bulgarian operation.

What does an employer of record in Bulgaria manage for payroll and tax?

An Employer of Record handles payroll in Bulgaria by calculating employee pay, deducting the correct tax and social security contributions, issuing payslips and making the required payments and filings. Bulgarian employment income is generally taxed at a flat 10% personal income tax rate after applicable compulsory social security contributions and tax reliefs. The EOR calculates and withholds this through payroll.

The EOR also manages the employer and employee social and health insurance contributions required in Bulgaria. As of August 2026, the combined employer contribution is generally between 18.92% and 19.62% of insurable remuneration, while the employee contribution is generally 13.78%. The employer rate varies because the contribution for occupational accidents and diseases depends on the employer’s economic activity. Contributions are subject to the applicable minimum and maximum insurable-income thresholds.

Payroll calculations are updated when an employee receives a bonus, takes paid or sick leave, receives taxable benefits or has a salary change. Bulgaria adopted the euro on 1 January 2026 at the fixed conversion rate of EUR 1 to BGN 1.95583. Payroll, tax and statutory amounts are therefore administered in euros, subject to the transitional accounting and record requirements arising from the currency changeover. With EOR services in Bulgaria, the company does not need to manage Bulgarian payroll calculations and filings itself. The EOR handles these responsibilities as the local legal employer.

What is the total cost of hiring an employee in Bulgaria through an EOR?

An Employer of Record in Bulgaria typically costs around €200 to €600 per employee per month, although fees vary by provider and the level of support included.

The EOR fee is separate from the employee’s salary and the employer costs required in Bulgaria, including social security and health insurance contributions. Benefits, immigration support or one-off onboarding services can add to the overall cost. As of August 2026, statutory employer social and health insurance contributions generally total approximately 18.92% to 19.62% of insurable remuneration, subject to the applicable contribution ceiling and the employer’s occupational-risk rate. The percentage should not simply be applied to the employee’s entire salary where remuneration exceeds the statutory maximum insurable income.

Some EOR providers charge a fixed monthly fee per employee, while others price their service as a percentage of payroll. Companies should check what the quoted fee includes, particularly payroll processing, employment contracts, statutory filings, HR support and offboarding.

When comparing EOR services in Bulgaria, it is useful to look at the total monthly cost rather than the EOR fee alone.

How does EOR work in Bulgaria for EU and non-EU employees?

The EOR model is broadly the same for EU and non-EU nationals, but the employee’s right to work can change the onboarding process significantly. EU, European Economic Area and Swiss nationals generally have free access to Bulgaria’s labour market and do not need a Bulgarian work permit for ordinary employment.

For many third-country nationals, employment depends on the appropriate labour-market access and residence permission before work begins. The exact route varies by status and may involve the Employment Agency, Ministry of Interior and consular authorities. An EOR in Bulgaria can employ a non-EU national only where the required immigration conditions are satisfied.

The worker’s nationality affects timing and documentation rather than the basic EOR relationship. EOR services in Bulgaria cannot replace a permit or residence entitlement where Bulgarian law requires one. EU hires are usually administratively simpler, while non-EU hires need the employment arrangement and immigration pathway to remain aligned from onboarding through any renewal period.

What compliance deadlines must EOR services meet in Bulgaria?

EOR services in Bulgaria must meet several employer deadlines, including registering new employment within three days, reporting termination within seven days, and completing monthly payroll tax and social security obligations by the applicable deadlines. Since 1 June 2025, these events are entered in the NRA Employment Register as part of the Unified Electronic Employment Record rather than reported through the former employment-contract notification system.

Key deadlines include:

New employment or contract changes: generally recorded in the National Revenue Agency (NRA) Employment Register within three days.

Termination: generally recorded within seven days.

Payroll tax and social security: employer filings and payments are generally due by the 25th of the following month.

An Employer of Record in Bulgaria manages these deadlines as the legal employer, alongside payroll, employment records and other required reporting.

The company still needs to provide salary changes, bonuses, leave information and termination details to the EOR on time so they can be included in the correct payroll and filings.

Why is CXC a cost-effective employer of record solution in Bulgaria?

CXC provides a cost-effective way to hire employees in Bulgaria without the expense and administration of setting up and maintaining a local employing entity.

Through CXC’s Employer of Record in Bulgaria, companies can hire local employees while CXC manages employment contracts, payroll, tax and social security contributions, statutory benefits and ongoing HR administration.

This removes many of the costs involved in establishing a Bulgarian entity and building separate local payroll and HR processes, particularly when hiring a small team, entering the market or adding employees as the business grows. With more than 30 years of global workforce experience, CXC also gives international companies access to local employment support within a wider global workforce solution.

Compliantly hire employees anywhere with CXC

With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.

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