Employer of Record in Bulgaria
Last updated
- Capital City
- Sofia
- Languages
- Bulgarian
- Currency
- Bulgarian Lev (BGN)
- Population Size
- Approximately 6.5 million (2023 estimate)
- Employer Taxes
- 18.92%
- Employee Costs
- 13.78%
- Payroll Frequency
- Monthly
Expanding to Bulgaria? EOR Services Help You Hire Globally, Pay Locally, Expand Effortlessly
By working with a high-quality Employer of Record in Bulgaria like INS Global, you can establish, hire, and grow while bypassing the complexities and expenses of global expansion.
PEO services in Bulgaria provide a secure, efficient, and cost-effective solution for accessing local expertise. INS Global offers PEO services in Bulgaria, enabling you to swiftly recruit and manage HR services for your in-country employees. Our recruitment agency in Bulgaria can also find and screen the right candidates before you employ them.
By serving as the legal employer for your employees, our Employer of Record (EOR) in Bulgaria handles the intricacies of local employer responsibilities and ensures compliance. This streamlined process allows businesses to expand within 48 hours, providing a safe and cost-effective approach to global expansion in Bulgaria or 160+ other countries worldwide.
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Why Choose A PEO in Bulgaria Over Company Incorporation?
Incorporating a company in a foreign country can be complicated, time-consuming, and expensive. On the other hand, working with a PEO comes with a range of benefits that helps you expand internationally with ease.
Working with a PEO…
- Saves time
- Saves money
- Ensures legal compliance
- Leverages local experience
PEO/EOR Vs Company Incorporation
The Advantage in Figures
| PEO/EOR | Company Incorporation | |
|---|---|---|
| Price | 80% Less Expensive | |
| Market Entry | 2-5 Days | 6 Months |
| Employee Turnover | Decrease by 14% | |
| Recommendation | 98% of the Current PEO Clients | |
| Administrative Fees | Saves an Average of $450 | |
| Costly Payroll and Compliance Fines | Help Avoid | |
| Company Growth Rate | 7 – 9% | |
| ROI | 27% | |
| Closed During Pandemic | -58% | |
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Advantages Of Using A Professional Employer Organization
Legal Assurance
PEOs have the right local experience and knowledge to help meet even the most complex regulations. This ensures that you‘re compliant with every labor law, preventing costly fines and penalties.
Grow Your Company Faster
PEOs allow you to outsource your payroll , recruitment, and contractor management with a simple and efficient solution in Bulgaria. EOR and PEO services empower your company to focus on growing your business abroad with a partner that understands the local market.
Expand Efficiently
When you expand internationally with a PEO, you can reduce the time needed to launch in a new country. While starting a new entity abroad can typically take anywhere from 4 to 12 months, working with a PEO streamlines the process to just a few weeks.
Save Money and Time
Working with a PEO allows you to outsource your HR and prevent costly fines and penalties when expanding internationally. The local expertise helps keep your business compliant while cutting through red tape and saving you from costly fines.
Manage Your HR Online
NS Global offers a streamlined, cloud-based solution that lets you control every aspect of your business online in one place. This platform allows you to manage a diverse, international workforce with ease.
How Does An EOR In Bulgaria Work?
INS Global’s Bulgarian EOR manages employee recruitment and management in four simple steps.
- 1
We work with you to discuss your plans and create a strategy that best serves you.
- 2
Our organization provides a legal entity that helps you hire staff in Bulgaria.
- 3
We handle all HR-related tasks such as recruitment, employment contracts, and payroll to ensure legal compliance.
- 4
Your employees continue to work towards your goals while we handle HR.
What's The Difference Between PEO And Employer of Record Services in Bulgaria?
When expanding into a new country, you may be considering working with a PEO (Professional Employment Organization) or an EOR (Employer of Record). Here’s a quick guide to the differences between these options.
- PEOs offer HR services to your company’s employees, handling tasks like payroll, tax deductions, and ensuring compliance with legal regulations.
- The comprehensive services of a PEO encompass various aspects of HR management.
- EORs, which function similarly to PEOs, go a step further by legally recruiting and hiring employees on your company’s behalf.
- In a PEO arrangement, the contract is established directly between your company and the employee.
- In an EOR arrangement, you direct the contract, but it is made between the EOR and the employee.
Why Bulgaria Is an Emerging Opportunity for Global Employers
Bulgaria offers one of the most competitive cost-to-talent ratios in the European Union. Known for its rapidly growing tech sector, strong education system, and multilingual professionals, Bulgaria has become a regional hub for IT services, fintech, customer support, and back-office operations.
Additionally, as an EU member, Bulgaria provides companies with access to the broader European market under a familiar regulatory structure. However, local labor and tax laws require careful attention. A trusted Employer of Record (EOR) in Bulgaria allows international companies to benefit from the country’s advantages without the delays, costs, or risks associated with establishing a local entity.
Hiring Remote Employees in Bulgaria Through an EOR
With strong internet infrastructure and one of the highest percentages of STEM graduates in Europe, Bulgaria is ideal for building remote or hybrid teams. But even remote employees are subject to Bulgaria’s labor laws, including rules for minimum leave, payroll deductions, and social contributions.
A Bulgarian EOR enables you to:
Hire remote employees with legally compliant contracts
Ensure accurate payroll, taxes, and benefits contributions
Comply with employment protections such as maternity leave, notice periods, and rest breaks
Onboard and support team members through a centralized, digital platform
This model is ideal for companies testing the European market or expanding regional support teams.
INS GUIDES
Check Our Labor Law Guide
Learn how the Labor Law Guide is applied in all aspects and situations, from an employer and employee perspective.
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Labor Law in Bulgaria
Employment Contracts In Bulgaria
- Employment in Bulgaria should be accompanied by a written offer of employment.
- Employers may include a probation period of employment for the first 6 months.
- Employers can terminate the employee without severance within or after the initial probation period.
- The employment contract should describe the nature of the contract. This could be fixed-term, temporary, part-time, remote, etc.
- An employer can end the contract early if the employee behaves in a way that goes against the initial employment contract.
- A required notice period in Bulgaria is typically a minimum of 30 days, or 3 months for a fixed-term contract, with no nationally mandated required for severance pay in Bulgaria.
Bulgarian labor law states that the working week starts on Monday and ends on Friday.
Full-time employees generally work a maximum of 8 hours per day, 40 hours per week.
Overtime is allowed but at a higher hourly rate of 175%.
During the working day, all employees are entitled to a short break.
Types Of Leave
Bulgaria has 12 official national holidays when employees are entitled to a day off.
Employees may be entitled to additional vacation days per year according to the employment agreement they signed.
Employees that are eligible for holidays are generally entitled to receive their regular salary during that time off. This is typically 20 days per year.
The scheduling of holidays is subject to the employer.
Bulgarian labor law states that all full-time employees are entitled to sick leave if they are ill and can’t come in to work.
The employer covers 70% of an employee’s wages for the first 3 days.
Employees should notify their employers as soon as possible and provide a medical certificate as proof of illness.
Sick leave is generally allocated per 24-month cycle.
Bulgarian labor law notes that female employees are entitled to a maximum maternity leave of 410 calendar days, one of the longest in the world.
The start of maternity leave should be 45 days before the expected date of childbirth.
After maternity leave, employees have the right to return to work in their previous position or an equivalent option.
Male employees are also entitled to 15 consecutive days of paternity leave. This is generally taken after childbirth.
Tax Law
- Employers in Bulgaria are responsible for withholding taxes and any other social contributions from payroll.
- The average social contribution ranges from 24% to 25% of gross income. With around 14% payable by the employer and the remaining 10% by the employee.
- Income tax is a set at 10% of gross income regardless of income and whether you work in Bulgaria or abroad.
- Staff and individuals are responsible for reporting income and filing annual tax returns.
- The corporate income tax rate in Bulgaria is a flat 10%.
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Frequently Asked Questions
Global Employer of Record is an effective solution for companies looking to expand their workforce abroad effortlessly.
This approach allows you to outsource the international hiring process quickly and efficiently, providing access to a global talent pool while still managing payroll compliance in each country.
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