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Bulgaria-fact-sheet

eor in bulgaria

Payroll and HR Fact Sheet for Bulgaria

1. Payroll Overview

Key Elements:

  • Minimum Wage: As of 2024, the minimum wage in Bulgaria is BGN 780 per month.
  • Overtime Pay: Typically 1.5 times the regular rate for hours worked beyond the standard work hours, and 2 times for work on public holidays.
  • Deductions: Income tax, social security contributions, health insurance, and other statutory deductions.

National Requirements:

  • Social Security Contributions: Both employer and employee contribute.
  • Health Insurance: Mandatory contributions from both employer and employee.
  • Income Tax: Flat rate of 10% on personal income.

Payroll Cycle:

  • Payment Frequency: Typically monthly.
  • Payday: By the 25th of the following month.

2. Human Resources Compliance

Key Legislation:

  • Labour Code: Governs employment relations, including working conditions, termination, and employee rights.
  • Social Security Code: Covers social security contributions and benefits.
  • Health and Safety at Work Act: Sets out employer responsibilities for workplace health and safety.

Employment Standards:

  • Hours of Work: Standard workweek is 40 hours, typically 8 hours per day.
  • Vacation: Employees are entitled to at least 20 days of paid annual leave.
  • Public Holidays: 12 national holidays, including New Year’s Day, Liberation Day, and Christmas.

3. Statutory Benefits

Social Security:

  • Pension Insurance: Covers old-age pensions, disability pensions, and survivor pensions.
  • Unemployment Insurance: Provides temporary financial assistance to eligible unemployed workers.
  • Sickness and Maternity Benefits: Paid by the National Social Security Institute (NSSI).

Health Insurance:

  • Mandatory contributions provide access to the public healthcare system.

Additional Benefits:

  • Family Allowances: Provided for employees with children.
  • Workplace Accident and Occupational Disease Insurance: Covers incidents occurring during employment.

4. Employee Rights

Equal Employment Opportunities:

  • Anti-discrimination laws prohibit discrimination based on race, gender, age, disability, and other protected characteristics.
  • Employers must provide equal pay for equal work and reasonable accommodations for disabilities.

Workplace Health and Safety:

  • Governed by the Health and Safety at Work Act.
  • Employers are responsible for providing a safe working environment and complying with safety standards.

Termination and Severance:

 

  • Notice periods depend on the length of service and reasons for termination.
  • Severance pay may be required in cases of redundancy or long-term employment.

5. HR Best Practices

  • Record Keeping: Maintain accurate records of employee information, payroll details, and compliance with labor standards.
  • Employee Training: Regular training on workplace safety, harassment prevention, and professional development.
  • Performance Management: Implement a system for regular performance reviews and feedback.
  • Compliance Audits: Periodic audits to ensure adherence to national and EU laws.