Bulgaria’s catching your attention for all the right reasons. Tech companies are flocking there. Startups are setting up shop. And once you see the talent pool—developers who speak three languages, business analysts who actually understand business, all at rates that make your CFO happy—you get why.
But then you try to hire someone. Suddenly, you’re staring at employment contracts that look nothing like what you’re used to. Payroll schedules that follow different rules. Legal requirements that weren’t in your expansion playbook. What looked straightforward from a distance gets complicated up close.
That’s precisely why we built this guide. We’ll show you how to hire and pay employees in Bulgaria the right way—no compliance surprises, no scrambling for answers at the last minute. Just clear steps to get your Bulgarian team up and running.
Navigating Bulgarian employment regulations
Before you bring someone on board, you need to understand the ground rules. Bulgarian labor law isn’t overly complex, but it is detailed. And you’ve got to follow it to the letter.
Key employment laws and work permits
Bulgaria’s Labour Code sets the standard. Employment contracts must be in writing and submitted to the National Revenue Agency (NRA) within three days of your new hire’s start date.
The contracts themselves need to include:
- Job title and responsibilities
- Salary and payment frequency
- Work location and hours
- Notice periods and leave policies
Most employers go with the default: indefinite contracts. Fixed-term contracts are allowed but come with stricter rules and limits on duration.
Hiring talent from outside the EU? You’ll need a work permit or an EU Blue Card. The process runs through the Employment Agency, and it’s best to start early. For EU/EEA and Swiss nationals, no permit is needed—just register their residence.
For a detailed breakdown of visa categories and timelines, check out our guide on how to secure work visas and authorization in Bulgaria.
Mandatory employer contributions and benefits
As an employer, you’re on the hook for several social contributions. As of 2025, you’ll contribute around 18.92% to 19.62% of the employee’s gross salary. That covers:
- Pensions
- Health insurance
- Unemployment
- Work-related injury coverage
The minimum wage in Bulgaria is BGN 933 (about US$560.44), and full-time employees can’t work more than 40 hours a week.
Employees get at least 20 days of paid vacation, plus public holidays. You’re also responsible for withholding personal income tax and employee social contributions from their gross salary.
Bottom line: don’t miss registration deadlines or skip benefits. The penalties are real and avoidable.
Structured steps to hire employees in Bulgaria
Hiring legally in Bulgaria is mostly about doing things in the right order and doing them on time.
Sourcing and recruiting talent
There’s no shortage of great candidates in Bulgaria, especially in tech, finance, and business services. Here’s where to look:
- Jobs.bg. Bulgaria’s largest job site
- Zaplatomer.bg. Job board with salary benchmarks
- LinkedIn. Great for professional roles and remote hires
- Local recruiters. Especially helpful in specialized industries
Job descriptions should be clear and to the point. Bulgarian candidates want transparency: salary range, benefits, and work conditions. You’ll want to be direct during interviews and focus more on skills, less on “culture fit.” Candidates may consider that fluff.
For a sense of where hiring is headed globally in 2025, our labor market trends blog dives into wage shifts, AI in hiring, and more.
Onboarding checklist
Here’s what onboarding in Bulgaria typically looks like:
- Sign a written employment contract
- Register the contract with the National Revenue Agency (NRA) within three calendar days
- Enroll the employee in social security and health insurance
- Provide safety training—it’s mandatory
- Issue an internal order confirming the employment start date
- Set up a payroll file with all the tax, benefit, and salary information
New hires typically provide a national ID, bank details, and (if needed) proof of education or licenses.
Missing a step here, especially around registration, can invalidate the contract or lead to fines.
Paying employees in Bulgaria
Getting payroll right is all about timing and accuracy. Here’s how it works in Bulgaria.
Salary payment frequency and methods
Employees expect to be paid monthly and on time. Most companies try to process payroll by the last working day of the month.
Typical cycle:
- Run payroll calculations at the end of the month
- Submit taxes and contributions by the 25th of the following month
- Pay employees between the 25th and the 30th
Bank transfers are the norm. Services like EasyPay or Payoneer can also work, especially for distributed teams.
Keep all payroll records for at least five years. That includes pay slips, declarations, and tax documentation.
Common challenges and solutions in Bulgarian payroll
Payroll in Bulgaria doesn’t leave much room for error. Here’s what to watch out for:
Addressing payroll compliance issues
One common issue? Miscalculating social contributions—especially when bonuses, allowances, or overtime are involved. These aren’t always straightforward, so if you’re unsure, get local help.
Another pain point is keeping up with frequent updates to tax rates or wage thresholds. The National Revenue Agency and the Ministry of Labor and Social Policy are good places to monitor changes.
Some companies run into trouble when they misclassify employees as contractors. Others file taxes late due to unfamiliar payroll software.
The fix? Know the rules, or work with someone who does.
Tips and resources for a successful application
- Don’t delay contract registration with the NRA; it’s a fast deadline.
- Use contracts in both Bulgarian and English if needed.
- Offer benefits that reflect local norms regarding vacation, health, etc.
- Partner with local HR advisors or legal experts.
You can also check out the Bulgarian Chamber of Commerce and Industry for business resources and local guidance.
Partner with an Employer of Record (EOR)
If hiring directly in Bulgaria feels overwhelming, there’s another route.
An Employer of Record (EOR) acts as the legal employer on your behalf. They handle:
- Employment contracts and compliance
- Payroll and tax withholdings
- Local benefits and leave tracking
- Social contributions and reporting
With an EOR service like Pebl, you don’t need to set up a local entity. You focus on building your team. We handle the global HR lift.
To see how an EOR fits into broader global hiring strategies, explore Global Expansion 101 Part 4 on talent recruitment and workforce research.
Hiring in Bulgaria with confidence
Hiring in Bulgaria can feel like a big leap, but it doesn’t have to be a blind one. With a bit of structure—and maybe the right partner—you can build a team that’s legally employed, fairly paid, and ready to contribute from day one.
From contracts and registrations to payroll deadlines and benefits, Bulgaria has its rules. But once you know the steps, they’re easy to follow. And now you’ve got them.
Ready to hire in Bulgaria? Pebl is already on the ground
Pebl is already set up in Bulgaria. We know the labor laws inside out. We run payroll that’s accurate and on time. We make sure your contracts hold up and your team gets paid correctly.
What does this look like? Your new Bulgarian developer starts working while you’re still trying to figure out how to spell “социално осигуряване” (that’s “social security,” by the way). We handle the compliance, the taxes, the benefits—all of it. You handle the strategy and growth.
No local office needed. No late nights studying Bulgarian tax codes. Just great talent, hired fast, paid right.
Ready to skip the complexity and get straight to growing? Let’s talk about your expansion plans. We’ll show you how hiring globally becomes the easiest part of going global.
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.
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