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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.

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