To directly employ staff under Bulgarian employment law, the employer must be registered in Bulgaria — either as a Bulgarian company (OOD, AD, or other form) or as a registered branch of a foreign company. If you do not yet have a Bulgarian entity, Bulgaria for Business VCC offers an Employer of Record (EoR) service — we act as the legal employer for your Bulgarian staff while you operate your business. This allows you to hire in Bulgaria immediately, without waiting for your own company to be established.
Hiring Employees in Bulgaria
End-to-End Recruitment & Employment Compliance for Foreign-Owned Bulgarian Companies
Labour Code Compliant
Contracts in English
NRA & NOI Registration
Employer of Record
BULGARIAN LABOUR CODE — KEY FIGURES
BGN 933 Minimum wage (2024–2025)
20 days Minimum annual paid leave
6 months Maximum probation period
30 days Minimum notice period (open-ended contract)
Hiring employees in Bulgaria — the regulatory framework
Employment in Bulgaria is governed by the Labour Code (Кодекс на труда — КТ) — a comprehensive statutory framework that establishes the rights and obligations of employers and employees. As an EU member state, Bulgaria’s Labour Code is aligned with EU employment directives — covering equal treatment, working time, parental rights, collective redundancy, and employee information and consultation.
For foreign-owned companies hiring in Bulgaria for the first time, the Labour Code contains several requirements and protections that differ from other EU jurisdictions — particularly around mandatory employment registration (Form 1), the record book (трудова книжка), probation periods, and the specific rules governing termination. Bulgaria for Business VCC prepares all employment documentation, manages all statutory registrations, and advises on Labour Code compliance throughout the employment lifecycle.
FORM 1 MUST BE FILED BEFORE DAY ONE: The single most important procedural compliance requirement when hiring in Bulgaria is Form 1 — the mandatory NRA notification that must be filed within 3 working days before the employee’s first working day. An employee who starts work before Form 1 has been accepted by the NRA is considered to be working without a contract — exposing the employer to fines of up to BGN 15,000 per employee. Bulgaria for Business VCC files Form 1 for all new hires as a standard part of our onboarding process. Never allow an employee to start without this step being completed.
Employment contract types in Bulgaria
Bulgarian employment law recognises several forms of employment contract — each with different characteristics, use cases, and legal protections. The choice of contract type has significant implications for both employer and employee.
| Contract type | Description | When used | Notice to terminate |
|---|---|---|---|
| Open-ended employment contract | The standard form of Bulgarian employment contract — no fixed end date. Provides the employee with the strongest legal protections. The default contract type under the Labour Code unless a specific reason for a fixed term exists. | Most permanent professional roles — the default for virtually all standard employment situations. | 30 days minimum (both parties) — up to 3 months by agreement |
| Fixed-term employment contract | Contract for a defined period — maximum initial term of 3 years. Can be renewed — but repeated renewals without justification may be legally converted to open-ended contracts by a court. A legitimate reason for the fixed term is required. | Project-based work, replacement for an absent employee (maternity, long-term sick), seasonal operations, or specific time-limited tasks. | End of the agreed term — or minimum 3 months notice if early termination |
| Part-time employment contract | Employment contract for less than the standard 8-hour working day or 5-day working week. All employment rights apply proportionally. Increasingly common for specialists, returners from parental leave, and flexible work arrangements. | Part-time roles at any seniority level — administrative support, specialist advisory, flexible work. | Same as the underlying contract type (open-ended or fixed-term) |
| Civil contract / service contract | NOT an employment contract — a civil law services agreement for self-employed individuals or companies. No employment rights — no leave, no social security (usually), no minimum wage. Lower administrative overhead but significant misclassification risk. | Genuine freelancers and service providers with their own business. RISK: the NRA actively reclassifies disguised employment as labour contracts and imposes back-taxes. | As agreed — civil law provisions apply |
CIVIL CONTRACTS ARE NOT EMPLOYMENT CONTRACTS: Using a civil/service contract (граждански договор) to engage what is effectively an employee is a common but high-risk practice in Bulgaria. The NRA actively audits working arrangements and reclassifies disguised employment — imposing back-dated social security contributions, income tax, and penalties of up to BGN 15,000 per worker. If an individual works exclusively for you, at your workplace, under your direction, on a regular and ongoing basis — this is employment, not a civil services arrangement. Bulgaria for Business VCC advises on the correct contract structure for every working arrangement.
Mandatory terms in a Bulgarian employment contract
The Labour Code specifies a set of mandatory terms that must appear in every Bulgarian employment contract. Contracts missing any of these terms may be void or unenforceable in respect of the absent provision — with the statutory default applying. Bulgaria for Business VCC prepares fully compliant employment contracts in both Bulgarian and English.
| Mandatory term | What must be included |
|---|---|
| Parties and date | Full legal names of employer and employee, employer’s UIC (ЕИК), employee’s personal ID number (ЕГН), date of conclusion. |
| Place of work | The specific location where work is to be performed — address of the office or defined working arrangements (hybrid/remote). Remote work arrangements must be specifically documented. |
| Job title and position | The specific job title as it will appear in the employee’s record book (трудова книжка) and NRA records. Must correspond to a recognised position. |
| Start date | The date on which the employment relationship commences. For new hires, this is the first working day. |
| Duration (for fixed-term) | For fixed-term contracts — the specific end date or the event that triggers the end of the contract. |
| Working time | Full-time (8 hours per day, 40 hours per week is standard) or part-time specification. Shift patterns, if applicable. |
| Gross salary | The agreed gross monthly salary in BGN. Any additional components — performance bonuses, transport allowances, food vouchers — should be specified. |
| Probation period | Duration of the probation period (if any) — maximum 6 months for open-ended contracts, 1 month for fixed-term contracts of up to 1 year. During probation, either party can terminate with 3 days’ notice. |
| Annual paid leave | Minimum 20 working days of paid leave per year under the Labour Code. Many employers offer 25 days. Additional leave for dangerous work or special categories. |
| Notice period | Minimum 30 days for either party on open-ended contracts. Can be increased by agreement to maximum 3 months. Fixed-term contracts run to their end date. |
The hiring process — step by step
From making the decision to hire through to the employee’s first working day, the following steps apply to every new hire in Bulgaria. Bulgaria for Business VCC manages all steps marked as compliance requirements.
1
Job brief and salary benchmarking
Define the role, responsibilities, required skills, and competitive salary range. Bulgaria for Business VCC provides salary benchmarking reports to ensure your offer is competitive. An uncompetitive salary offer is the single biggest reason candidates decline or disengage during the process.
Salary benchmarking from €300 per role
2
Candidate search and screening
Job advertising on Bulgarian and international platforms (Jobs.bg, Zaplata.bg, LinkedIn), database search, and where relevant, headhunting. All applicants are screened against the brief before client presentation.
CV screening + interview + assessment — managed by Bulgaria for Business VCC
3
Shortlist and interviews
A shortlist of qualified candidates is presented with interview notes and recommendations. Client interviews are coordinated — we provide candidate briefing materials and gather post-interview feedback.
Shortlist of 3–5 screened candidates
4
Offer and offer letter
The verbal offer is made by Bulgaria for Business VCC on the client’s behalf. An offer letter confirming the key terms — salary, start date, probation period, and benefits — is prepared and sent to the candidate.
Offer management and negotiation included
5
Employment contract preparation
The employment contract is prepared in Bulgarian and English — compliant with the Labour Code and incorporating all agreed terms. Signed by both parties before the start date.
From €200 per contract — prepared by our legal team
6
Form 1 — NRA notification
The mandatory NRA notification (Уведомление чл.62, ал.5 КТ) is prepared and filed electronically with the NRA within 3 working days before the start date. A confirmation receipt is obtained and provided to the client.
Filed within 3 working days before start — MANDATORY
7
Employee record book (Трудова книжка)
The employer records the commencement of employment in the employee’s labour/record book — a personal document all Bulgarian employees hold. The record book must be updated at each change and on termination.
Completed on or before first working day
8
Health and safety briefing
A mandatory health and safety briefing (Инструктаж по безопасност и здраве при работа) must be conducted and documented on the first working day — even for office-based employees. The employee signs an acknowledgement.
Required by law — documentation prepared by Bulgaria for Business VCC
9
Payroll and benefits setup
The new employee is added to the payroll system. First month’s salary calculation, food voucher setup (if applicable), and employer social security registration with NOI are completed.
Payroll from €30/employee/month — managed by Bulgaria for Business VCC
Employee entitlements under Bulgarian Labour Code
Every employee in Bulgaria — regardless of nationality or type of employer — is entitled to the following minimum protections. Most of these are mandatory and cannot be contracted out of.
| Employee entitlement | Details under Bulgarian Labour Code |
|---|---|
| Annual paid leave | Minimum 20 working days per year (4 calendar weeks). Most employers in the professional sector offer 25 days. Leave accrues from day one of employment but typically taken after probation. Unused leave carries over and must be used (or compensated on termination). |
| Public holidays | 13 public holidays per year in Bulgaria. Public holidays falling on weekends are typically compensated with an extra day off. Work on public holidays attracts premium pay (at least 150% of normal rate). |
| Sick leave | Employees who are ill obtain a sick note from their GP or specialist. The first 3 days are paid by the employer at 70% of daily average earnings. From day 4 onwards, the National Social Security Institute (NOI) pays sickness benefit. |
| Maternity leave | 45 days before the expected birth date, then 410 days after birth (1st and subsequent children). The first 135 days are paid by NOI at 90% of average earnings. Maternity leave is fully protected — dismissal during maternity leave is prohibited. |
| Paternity leave | 15 days paternity leave following birth — paid by NOI. Additional parental leave (up to the child’s 2nd birthday) can be taken by either parent. |
| Overtime rules | Overtime is permitted but regulated — maximum 150 hours per year (or up to 300 hours with employee consent). Overtime must be compensated — at least 150% (weekday), 175% (rest days), 200% (public holidays) of the normal rate. |
| Non-compete obligations | Post-employment non-compete restrictions are permitted but must be reasonable in scope, duration (maximum 1 year), and geographic coverage. They are only enforceable if accompanied by adequate compensation during the restriction period. |
| Confidentiality obligations | Employees can be contractually required to maintain confidentiality of trade secrets and proprietary information during and after employment. These obligations are enforceable under Bulgarian law. |
Terminating employment in Bulgaria
Bulgarian employment law provides significant protections for employees — termination must follow a defined legal procedure depending on the grounds. The most common and legally cleanest termination route is mutual agreement. Bulgaria for Business VCC advises on the correct procedure and manages all termination documentation.
| Termination type | Requirements and implications |
|---|---|
| Termination with notice | The employer may terminate an open-ended employment contract with the statutory notice period — 30 days minimum (up to 3 months if agreed). No specific reason is required for termination with notice, but the employer must pay: notice period salary (or payment in lieu), unused annual leave, and any severance where applicable. |
| Termination without notice — disciplinary | Dismissal without notice (disciplinary dismissal) is permitted only for defined grounds — serious misconduct, absence without authorisation for more than 2 consecutive working days, conviction for intentional crime during employment, or other grounds specified in the Labour Code. A formal disciplinary procedure must be followed. |
| Termination without notice — employee fault | An employee may terminate immediately (without notice) in specific circumstances — failure to pay salary, illegal transfer to another position, dangerous working conditions, and other grounds defined by law. The employer does not control this type of termination. |
| Collective redundancy | Where 10 or more employees are made redundant within a 30-day period, collective redundancy rules apply. The employer must notify the Employment Agency (Агенция по заетостта) 45 days in advance, consult with employee representatives, and follow a defined procedure. Individual notices still apply. |
| Severance pay | Mandatory severance applies in specific situations — including redundancy (minimum 1 month salary per year worked, up to 6 months), mutual agreement termination (minimum 4 months salary if the employee has worked 10+ years with the same employer under Art. 331), and certain dismissals. |
| Mutual agreement | Employment can be terminated by mutual written agreement at any time — this is the most common and cleanest termination route in Bulgaria. No procedure required, no challenge possible. Typically involves a severance payment agreed between the parties. |
MUTUAL AGREEMENT IS THE PREFERRED ROUTE: In practice, the vast majority of employment terminations in Bulgaria are handled by mutual agreement (чл. 325, ал.1, т.1 КТ). This approach requires the employee’s written consent — typically obtained in exchange for a severance payment. It is immediately effective, cannot be challenged, and avoids the procedural complexity of other termination routes. Bulgaria for Business VCC advises on the appropriate compensation package and manages the full termination documentation for mutual agreement terminations.
Cost overview — from first hire to ongoing employment
The following cost overview covers all key cost components from recruitment through to ongoing employment for a single Bulgarian employee.
| Cost item | Description | Cost |
|---|---|---|
| Recruitment fee (Bulgaria for Business VCC) | Contingency placement fee — success-based, paid on confirmed start date. | 15–20% of first year gross salary |
| Employment contract preparation | Labour Code-compliant employment contract in Bulgarian and English, plus all required annexes. | From €200 per employee |
| NRA registration (employer) | Employer registration with NRA for employment purposes — if not already registered. | Handled by Bulgaria for Business VCC — included in onboarding |
| Employee NRA / NOI registration notification | Statutory notification to NRA within 3 days before start date (Form 1). Bulgaria for Business VCC handles this. | Handled as part of service |
| Monthly payroll processing | Monthly payroll calculation, NRA filing, social security, payslip generation. | From €30/employee/month |
| HR administration — onboarding | Record book (трудова книжка) registration, personal file setup, induction documentation. | Included in onboarding service |
| Employer social security cost (ongoing) | ~18.92% employer contribution on gross salary — the main ongoing employment cost above gross salary. | ~18.92% of gross salary/month |
| Food vouchers (if offered) | Bulgarian law allows employers to issue tax-advantaged food vouchers up to BGN 200/month per employee. Popular benefit. Exempt from income tax and social security for both employer and employee. | Optional — from €0 cost (tax-neutral) |
Recruitment fee is paid once on successful placement. Ongoing costs are monthly — employer social security (~18.92% of gross salary) is the primary recurring cost above gross salary. All professional fees exclude Bulgarian VAT (20%).
Frequently asked questions — hiring employees
Key questions answered for international companies hiring in Bulgaria.
Form 1 (Уведомление по чл. 62, ал. 5 КТ) is the mandatory employment notification that the employer must submit to the NRA within 3 days before the employee’s start date. It registers the employment relationship with the national tax and social security system. Failure to submit Form 1 before the employee’s first working day exposes the employer to significant fines — up to BGN 15,000 per employee. Bulgaria for Business VCC submits Form 1 for all new hires as a standard part of our onboarding service.
The maximum probation period is 6 months for open-ended employment contracts and 1 month for fixed-term contracts of up to 1 year (no probation permitted for fixed-term contracts of less than 1 month). During the probation period, either party may terminate the contract with 3 days’ notice — no reason is required and the standard termination protections do not apply. The probation period should always be included in the written employment contract.
Food vouchers (ваучери за храна) are a legally recognised employee benefit in Bulgaria — issued by authorised providers, redeemable at supermarkets and restaurants. Employers may issue up to BGN 200/month per employee tax-free (no income tax, no social security for either party). This means a BGN 200/month food voucher costs the employer BGN 200 but is worth BGN 200 net to the employee — compared to paying BGN 200 gross in salary, which nets the employee approximately BGN 152 after taxes. Food vouchers are an extremely popular and cost-effective benefit — Bulgaria for Business VCC strongly recommends including them as part of the total compensation package.
A civil contract (граждански договор) is a civil law services agreement — not an employment contract. It can be used for genuinely self-employed individuals providing services on a project basis. However, if the working arrangement has the characteristics of employment (fixed workplace, fixed hours, exclusive relationship, employer-controlled tasks), the NRA may reclassify it as a disguised employment contract — imposing back-taxes, social security arrears, and penalties. The reclassification risk has increased significantly in recent years. Bulgaria for Business VCC strongly advises using proper employment contracts for all regular, ongoing working relationships.
Sick leave during the probation period does not automatically extend the probation period under Bulgarian law. The employer must grant paid sick leave in accordance with the Labour Code — the first 3 days at 70% pay from the employer, and from day 4 onwards, NOI pays sickness benefit. Termination during sick leave (even during probation) requires care — certain categories of employees have enhanced protections against dismissal while on sick leave. Bulgaria for Business VCC advises on the specific implications for each situation.
At the commencement of employment, the employer must: (1) provide the signed employment contract to the employee; (2) record the employment in the employee’s labour/record book (трудова книжка) — a personal document held by the employee registering all employment history; (3) submit Form 1 to the NRA (within 3 days before start); (4) provide a job description; and (5) conduct a health and safety briefing (Инструктаж по безопасност и здраве при работа) — even for office roles. Bulgaria for Business VCC prepares and manages all these documentation requirements.
In practice, the majority of employment terminations in Bulgaria are completed by mutual agreement (чл. 325, ал.1, т.1 от КТ) — a written agreement signed by both employer and employee to end the employment relationship on agreed terms. This approach is preferred because it is immediate, mutual, and unchallengeable — neither party can subsequently claim wrongful dismissal. The mutual agreement typically includes a payment to the employee in exchange for their consent to terminate. Bulgaria for Business VCC advises on the appropriate termination payment and prepares all documentation for mutual agreement terminations.
Ready to hire in Bulgaria?
Bulgaria for Business VCC provides end-to-end hiring support — candidate search, employment contracts, NRA registration, and ongoing payroll and HR administration. Contact us to discuss your first hire.
Contingency recruitment 15–20%
Contracts from €200
Payroll from €30/employee/month
EoR available
Contracts from €200
Payroll from €30/employee/month
EoR available
Bulgaria for Business VCC — Your Trusted HR and Recruitment Partner in Bulgaria. Employment law requirements are correct as of 2024–2025 and are subject to legislative change. This document is for general information only and does not constitute legal advice.