Country Guide

Employer of Record in Bulgaria

Last updated: May 20, 2025

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

Public Holidays Calendar

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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.

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%

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.

We work with you to discuss your plans and create a strategy that best serves you.

Our organization provides a legal entity that helps you hire staff in Bulgaria.

We handle all HR-related tasks such as recruitment, employment contracts, and payroll to ensure legal compliance.

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.

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.

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.

Working Hours

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

Annual 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.

Sick Leave

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.

Maternity / Paternity Leave

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%.

First Name

Last Name

Business Email

Company Name

Business Phone Number

Job Function

What country are you located in?

What countries are you looking to hire a candidate in?

What is your primary product interest?

How can we help?

Frequently Asked Questions

faqs

Can I use my company to employ / dispatch staff abroad?

No, it is necessary to use a local entity abroad to comply with each country labor law.

Do I need to set up a local entity abroad to employ/dispatch staff?

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

What's an Employer of Record in Bulgaria?

An Employer of Record is the legal entity that‘s responsible for staff hired in a specific country. You can make use of PEO services to help with administrative tasks such as payroll management, hiring, recruiting, and even tax compliance.

What is the Employer of Record's liabilities?

An Employer of Record in Bulgaria can help with all kinds of HR-related tasks to ensure compliance for your workforce. This includes payroll management, tax compliance, employment contracts, social security deductions, and more.

How quickly is it possible to expand abroad?

Starting a new company abroad can take anywhere from 4 to 12 months. However, you can hire staff and expand abroad in less than a month with the help of INS Global‘s PEO services.

What does a PEO service cost in Bulgaria in 2025?

A PEO can help you save money by streamlining your entire expansion plan. While these services can range, INS Global‘s PEO comes with a monthly fee that‘s based on your employee‘s salary.

Is an Employer of Record a legal option in Bulgaria?

EORs are a safe, reliable, and efficient solution for businesses looking to expand into Bulgaria. EOR services speed up your expansion plans and help cut through red tape along the way.

How are Bulgarian salaries and payroll organized?

Salaries and payroll are usually processed monthly in Bulgaria. However, some employers prefer to pay staff weekly. Employers are responsible for deducting taxes and social security contributions from all employee payments.

How expensive is recruitment in Bulgaria in 2025 EOR in Bulgaria employ both Bulgarian citizens and foreigners?

Yes! INS Global can help you streamline all your employment functions for both Bulgarian and foreign employees. You can control everything on a single cloud-based platform, making the entire process even easier to manage.

A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.

This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each country.

Date	Day	Holiday	Notes
January 1	Wednesday	New Year’s Day	Celebrates the first day of the year
March 3	Monday	Liberation Day	Commemorates Bulgaria’s liberation from Ottoman rule in 1878
April 18	Friday	Orthodox Good Friday	Observed by the Eastern Orthodox Church
April 19	Saturday	Orthodox Holy Saturday	Observed by the Eastern Orthodox Church
April 20	Sunday	Orthodox Easter Sunday	Observed by the Eastern Orthodox Church
April 21	Monday	Orthodox Easter Monday	Observed by the Eastern Orthodox Church
May 1	Thursday	Labour Day	International Workers’ Day
May 6	Tuesday	Saint George’s Day / Bulgarian Armed Forces Day	Honors Saint George and the Bulgarian military
May 24	Saturday	Day of Bulgarian Education and Culture and Slavonic Literature Day	Celebrates the Cyrillic alphabet and Bulgarian culture
May 26	Monday	Day off for Culture and Literacy Day	Observed when May 24 falls on a weekend
June 1	Sunday	Children’s Day	Celebrates children and their rights
June 15	Sunday	Father’s Day	Honors fathers and fatherhood
July 1	Tuesday	July Morning	Celebrates the beginning of the summer season
September 6	Saturday	Unification Day	Commemorates the unification of Eastern Rumelia and Bulgaria in 1885
September 8	Monday	Day off for Unification Day	Observed when September 6 falls on a weekend
September 22	Monday	Independence Day	Marks Bulgaria’s declaration of independence from Ottoman Empire in 1908
November 1	Saturday	Revival Day	Honors Bulgarian Enlighteners
December 24	Wednesday	Christmas Eve	Celebrates the evening before Christmas
December 25	Thursday	Christmas Day	Celebrates the birth of Jesus Christ
December 26	Friday	Second Day of Christmas / Father’s Day	Continuation of Christmas celebrations and honors fathers