Quick facts

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Bulgaria, situated in Southeastern Europe, has a growing economy supported by sectors such as information technology, energy, and manufacturing. A member of the European Union, Bulgaria offers a competitive business environment with low labor costs and a flat tax rate. The country’s labor laws provide essential protections, including regulated working hours, social security, and benefits.

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Bulgaria adopted the euro on 1 January 2026 at the fixed rate of €1 = 1.95583 BGN.

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Employment Contracts

In Bulgaria, employment contracts may be indefinite or fixed-term and allow for both full-time and part-time work. Contracts specify the work type, salary, and conditions, ensuring clear terms for employees and employers.

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Probation Period

Contracts in Bulgaria typically include a probation period of up to 6 months. During probation, either party may terminate the contract without prior notice.

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Working Hours

The standard workweek is 40 hours (8 hours per day, 5 days a week). Employers may extend daily working hours to 10 hours under certain conditions, but the weekly total cannot exceed 48 hours. Overtime rates must be at least 50% higher on weekdays, 75% higher on non-working days, and 100% higher on public holidays.

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Vacation Days

Employees are entitled to at least 20 days of paid annual leave. Additional leave may be provided through collective bargaining agreements or individual contracts.

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Sick Leave

For the first 3 days of sick leave, the employer pays 70% of the employee's gross salary. From the fourth day onward, the state provides 80% of average earnings over the past 18 months. Employees are eligible for sick leave after completing 6 months of work experience.

For work-related injuries or occupational disease, state sick pay is 90%.

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Wages and Salary Payment

Effective 1 January 2026, the minimum wage is €620.20 per month (€3.74/hour), based on a standard 8-hour day and 5-day working week.

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Public Holidays

Bulgaria observes several national holidays, including:

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• January 1: New Year's Day
• March 3: Liberation Day
• May 1: Labour Day
• May 6: Day of Bravery / St. George's Day and Day of the Bulgarian Armed Forces
• 24 May: Day of the Saintly Brothers Cyril and Methodius, Bulgarian Alphabet, Education and Culture and of Slavic Literature (one of Bulgaria's most important holidays)‍
• 6 September: Unification Day
• 22 September: Independence Day
• 1 November: Day of the National Awakeners (Revival Leaders)
• 24-26 December: Christmas

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Public holidays also include Good Friday, Orthodox Easter Sunday and Monday.

One-off in 2026 only: The government declared 2 January 2026 a special non-working day to mark the transition to the euro.

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Employer Taxes

Employers contribute 14.12% to 14.82% to social security, depending on the sector. The total employer contributions, including health insurance, range from 18.92% to 19.62%.

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Employee Taxes

Employees pay a flat income tax of 10% and 10.58% towards social security. Health insurance contributions for employees are 3.2%.

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Notice Period

Permanent contracts generally require 1 month’s notice for termination, while fixed-term contracts require 3 months’ notice. Employment can be ended immediately by mutual agreement or upon contract expiration.

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Termination and Severance Pay

While statutory severance pay is not generally mandated, employees dismissed due to redundancy are entitled to one month’s salary. Extended compensation may be negotiated through collective agreements or employment contracts.