Hiring in Bulgaria: Employer Costs, Labor Laws and How to Hire
Bulgarian employers pay 18.52% social and health contributions on top of gross pay in 2026, plus a work accident contribution set by economic activity. The employee pays 13.78% and a flat 10% income tax. On a €2,000 monthly salary, the employer's cost is €28,444.80 a year before work accident insurance.
Hiring someone in Bulgaria? This guide covers what an employee costs, social and health contributions, the labor rules that apply, income tax and the ways a company outside Bulgaria can employ someone there. Bulgaria adopted the euro on 1 January 2026, so the amounts are in euros.
Employer and employee contributions in Bulgaria, 2026
Key employment rules in Bulgaria
How to hire in Bulgaria
Hiring in Bulgaria comes down to two decisions: who you hire, and how you employ them.
- Find the person. Write the role, set the salary against Bulgarian pay levels, then source and interview candidates. You can run the search yourself with a job post, or use a placement service that delivers a shortlist.
- Choose how to employ them. A Bulgarian entity running payroll, an employer of record or a contractor agreement. Each option is explained below.
- Make the offer. The contract has to meet the rules in the employment table above. Bulgaria adopted the euro on 1 January 2026, so pay is now quoted as a gross monthly salary in euros.
Your options for employing someone in Bulgaria
- Bulgarian entity: you register a company in Bulgaria, run payroll and pay the employer's social and health contributions yourself. It suits a team of several people in Bulgaria.
- Employer of record (EOR): a third-party provider becomes the legal employer and runs Bulgarian payroll for a monthly fee per employee. Your company directs the work.
- Contractor: the person invoices you as a self-employed worker. The relationship has to be genuinely independent, or it can count as employment.
Euro Remote Talent does not employ people on your behalf. We handle the placement: we find and shortlist the candidate, and you employ them through the route that fits.
What an employee costs in Bulgaria
Take a salary of €2,000 gross a month in 2026, which is €24,000 a year and below the insurable income ceiling.
- Employer contributions: €24,000 x 18.52% = €4,444.80
- Employee contributions, withheld from pay: €24,000 x 13.78% = €3,307.20
- Income tax, withheld from pay: (€24,000 minus €3,307.20) x 10% = €2,069.28
The employer's cost is €28,444.80 a year, plus the work accident contribution for the company's economic activity. The employee takes home €18,623.52 a year. Contributions stop at the maximum insurable income: €2,111.64 a month until 31 July 2026 and €2,300 from 1 August 2026.
Minimum wage and pay
The minimum wage is €620.20 gross a month from 1 January 2026. The Council of Ministers set it at BGN 1,213, which the National Revenue Agency (NRA) states as €620.20. The average gross wage was €1,444 a month in the second quarter of 2026, 9.8% more than a year earlier, according to the National Statistical Institute (NSI). See our Bulgaria minimum wage and average salary in Bulgaria pages.
Income tax in Bulgaria
Bulgaria taxes income from employment at a flat 10%. The employer works out and withholds the tax each month, on gross pay minus the employee's social and health contributions.
| Income from employment, 2026 | Rate |
|---|---|
| Monthly tax base: gross pay minus the employee's social and health contributions | 10% |
| Annual tax base, all employment income | 10% |
Employees who earn only employment income, and whose employer worked out the annual tax, do not have to file a tax return, according to the NRA.
How Euro Remote Talent can help
We do placement. We source, screen and interview remote professionals across Europe, then deliver a shortlist of 3 candidates within 21 days for a flat $6,500, or your deposit back. Prefer to run the search yourself? Post a job for $299 and reach candidates who want to work remotely.
See how placement works, post a job or book a 30-minute call. Browse remote jobs in Bulgaria to see who is hiring there now.
This is general information, not legal or tax advice. Rules change and collective agreements can set different terms. Confirm with a local accountant or lawyer before you hire.
Frequently asked questions
How much does an employer pay in contributions in Bulgaria?
18.52% of gross pay in 2026 for state social insurance, the universal pension fund and health insurance, plus a work accident contribution that depends on the economic activity. Contributions stop at the maximum insurable income of €2,300 a month from 1 August 2026.
What does a €2,000 monthly salary cost a Bulgarian employer?
€24,000 a year plus €4,444.80 in contributions, for €28,444.80, before the work accident contribution. The employee takes home €18,623.52 after 13.78% contributions and 10% income tax.
How long is the notice period in Bulgaria?
30 days for an open-ended contract, unless the parties agreed a longer term of up to 3 months, under Labor Code article 326.
How much paid leave do employees get in Bulgaria?
At least 20 working days of paid annual leave a year, under Labor Code article 155, plus the official holidays listed in article 154.
Can a company outside Bulgaria hire someone there without a local entity?
Yes. The usual routes are an employer of record, a third-party provider that employs the person for you, or a genuine contractor agreement. Euro Remote Talent handles the placement: we find, screen and shortlist the person, and you choose the route.
Sources
- NRA, Appendix 1: 2026 table of contribution rates and split, 12 Aug 2026. Checked 3 Nov 2026.
- NRA, Rates and deadlines of state social insurance contributions. Checked 3 Nov 2026.
- NOI, Insurance of workers and employees: insurable income 2026. Checked 3 Nov 2026.
- NRA, Minimum wage from 1 Jan 2026. Checked 3 Nov 2026.
- Labor Code, lex.bg, Labor Code, arts. 70, 136, 146, 154, 155, 163, 222, 262, 326. Checked 3 Nov 2026.
- Personal Income Tax Act, lex.bg, Personal Income Tax Act, arts. 42 and 48. Checked 3 Nov 2026.
- NSI, Employees and average wage, 2nd quarter 2026. Checked 3 Nov 2026.
