HR Services in Bulgaria
HR support for US, UK and international companies hiring in Bulgaria: Bulgarian contracts and policies, payroll coordination, compliance and recruitment. Build your Bulgarian team without building an HR department first.
Last reviewed October 2026. Collective agreements can set other terms.
Expand Into Bulgaria With an HR Partner Who Knows Bulgarian Labor Law
Bulgaria’s economy produced €116.5 billion in 2025, and the country joined the euro area on January 1, 2026. It also brings detailed employment rules: written contracts entered in a state register before day one, overtime only in listed cases, dismissal only on legal grounds, and the first sick days paid by the employer.
Europe HR Solutions is your HR partner for Bulgaria. We prepare Bulgarian contracts, policies and handbooks, put payroll foundations in place and coordinate your payroll provider, support hiring and reward, and review your HR practices as Bulgarian law changes.
Expanding beyond Bulgaria? The same team covers 27+ European countries, so you manage one relationship instead of a provider in every market.
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Tell us about your plans for Bulgaria. We’ll tell you honestly what we see.
Book a Free Consultation Free, no commitment.HR Outsourcing in Bulgaria With Europe HR Solutions
One senior Europe HR Solutions team coordinates your HR in Bulgaria, working with independent in-country HR professionals from our European network who understand Bulgarian employment practice.
Everyday HR, handled
Payroll coordination, recruitment, compliance and employee relations for your team in Bulgaria, handled as one service, so you can focus on growing the business.
Compliance with Bulgarian labor law
We make sure your HR operations comply with Bulgarian law, and review your contracts and policies as the Labor Code and collective agreements change.
Cost-effective HR
Outsourcing means you don’t need your own HR team in Bulgaria, which reduces cost and frees resources for growth.
Flexible engagement
We work ad hoc, on an interim basis, by project or on a retainer, from a few weeks to several years.
HR Services We Provide in Bulgaria
Each of our services is available for Bulgaria.
Compliant contracts, payroll registration and statutory foundations in place before your first Bulgarian hire.
Employment Documentation Package→Bulgarian contracts, policies and handbooks aligned with Bulgarian labor law.
Systems & Payroll Coordination→Your HR systems and payroll providers aligned, with consistent data and full visibility for leadership.
Compensation & Benefits Strategy→A structured reward framework aligned with Bulgarian law, market data and internal equity.
Recruitment Support→Roles calibrated, salaries benchmarked and hiring aligned with Bulgarian employment law.
HR Compliance Audit→A structured review of your HR compliance risk in Bulgaria, with a clear action plan.
Retained HR Services→Ongoing senior HR oversight on a monthly retainer, including manager coaching and support with employee representative interactions.
M&A HR Support→HR due diligence, employee transfer and post-deal integration for deals in Bulgaria.
Key Employment Regulations in Bulgaria
The Labor Code sets the baseline. Collective agreements can improve on it, and sector agreements can also stretch some limits, such as the overtime cap, so check whether one applies before you hire.
Show all 12 regulationsHide the regulations
Contracts and written terms
Every employment contract must be in writing and signed before work starts. It sets the job, place of work, pay, hours, leave and equal notice for both sides. Within 3 days of signing, the employer enters it in the employment register kept by the National Revenue Agency (NRA), and the employee can’t start work before getting a copy of the entry.
Working hours and overtime
Full time is 8 hours a day and 40 a week. Averaged schedules allow shifts of up to 12 hours and weeks of up to 56. Overtime is allowed only in cases the Labor Code lists, up to 150 hours a year, or 300 under a sector agreement, with monthly and weekly caps, and earns at least 50% extra, 75% on rest days and 100% on public holidays.
Minimum wage
The minimum wage is €620.20 a month for full-time work, or €3.74 an hour, since January 1, 2026, set by government decree. Sector and industry collective agreements can set higher minimums. A government draft proposes €660 a month from January 1, 2027.
Paid leave and public holidays
Paid leave is at least 20 working days a year, with at least 5 more for hazardous work or irregular working hours, and 26 days for under-18s and for employees with reduced work capacity of 50% or more. Unused leave expires 2 years after the year it’s for, as a rule. Ten public holidays on fixed dates and four Easter days are days off.
Sick pay
The employer pays 70% of average daily gross pay for the first 2 working days of sick leave. After that, the NSSI (National Social Security Institute) pays 80% of average daily gross pay, capped at average daily net pay, or 90% after a work accident or occupational disease. Pay for general illness needs 6 months of insurance, except for employees under 18.
Maternity, paternity and parental leave
Mothers get 410 days of maternity leave, 45 of them before the birth, with the NSSI paying 90% of average gross insured pay after 12 months of insurance. A father married to or living with the mother gets 15 days at the birth, and fathers can take up to 2 months of leave before the child turns 8. Leave to raise a child runs until age 2, with a flat NSSI benefit.
Probation
Probation is optional and lasts up to 6 months, or up to 1 month when the job is for less than a year. The contract says whose favor it’s agreed in, or it counts for both sides, and that side can end the contract without notice before probation ends. It can be agreed only once for the same job with the same employer.
Notice and dismissal
Notice is 30 days on open-ended contracts, unless a longer period of up to 3 months is agreed or a collective agreement links it to length of service, and 3 months on fixed-term contracts, capped at the time left. Employers can dismiss with notice only on grounds the Labor Code lists, such as closure, staff cuts or a lack of the needed qualities. Some protected employees need the labor inspectorate’s prior permission.
Employee representatives
Employees can elect representatives at a general assembly to speak for their interests on employment and social security. With 50 or more employees, or 20 or more in a separate unit, the general assembly elects information and consultation representatives, and the employer must inform and consult them on jobs and changes to work organization.
Collective agreements
A company agreement signed with a union applies to its members. Whom a sector agreement binds isn’t yet set out expressly; a pending bill would bind employers in the signing organization. At the parties’ joint request, the labor minister can extend one to the whole sector if all nationally representative organizations consent in writing. Agreements can improve on the law; sector agreements can also raise the overtime cap.
Social security
Employers and employees share social security contributions, due on monthly pay between a minimum set for each type of job and €2,300 since August 1, 2026. Non-wage costs make up 13% of total labor costs in Bulgaria, or about 15% on top of gross wages (Eurostat, 2025).
Pay transparency
Bulgaria missed the June 2026 deadline for the EU Pay Transparency Directive. The government’s bill, which amends the Protection Against Discrimination Act and the Labor Code, has been in committee in the National Assembly since September 11, 2026. Already, the Labor Code gives women and men the right to equal pay for the same work or work of equal value.
The Benefits of Expanding to Bulgaria
What Bulgaria offers companies that set up properly.
A euro area economy
Bulgaria’s GDP was €116.5 billion in 2025, and it joined the euro area on January 1, 2026 (Eurostat, ECB).
Growth above the EU average
Bulgaria’s economy grew 3.0% in 2025, more than twice the EU’s 1.4% (Eurostat).
The EU’s lowest labor costs
Average hourly labor costs in industry, construction and services (excluding public administration) were €12.00 in Bulgaria in 2025, the lowest in the EU, against €34.90 across the EU (Eurostat).
A strong ICT sector
Information and communication made up 8.7% of Bulgaria’s gross value added in 2025, the fifth-highest share in the EU, against 5.6% across the EU (Eurostat).
ICT services exports
ICT services exports equal 7.1% of Bulgaria’s total trade, 13th of 139 economies (Global Innovation Index 2026).
A diversified industry
Bulgaria ranks 12th of the 111 economies with data for domestic industry diversification (Global Innovation Index 2026).
The Challenges of Expanding to Bulgaria
Six things to plan for before your first hire.
Overtime limits
Overtime is allowed only in cases the Labor Code lists, up to 150 hours a year, or 300 under a sector agreement.
Dismissal on legal grounds only
Dismissal needs a ground the Labor Code lists, and dismissing a mother of a child under 3 for staff cuts or performance needs the labor inspectorate’s permission.
Paperwork before day one
Employees can’t start work until they have the signed contract and a copy of its entry in the NRA’s employment register.
Leave that varies by job and age
Leave starts at 20 working days, with at least 5 more for hazardous work or irregular hours, and 26 for under-18s and for reduced work capacity of 50% or more.
Employment costs
Non-wage costs add about 15% on top of gross wages (Eurostat, 2025), and employers pay 70% for the first 2 working days of sick leave.
Internal labor rules
Every employer must issue internal labor rules, after consulting unions and employee representatives where there are any.
Key HR Compliance Risks in Bulgaria
Eight mistakes to avoid in Bulgaria, and what each one leads to.
Employee starts before the paperwork
Employees can’t start until you give them the signed contract and a copy of its register entry. Each breach is fined €766.94 to €7,669.38 and can’t be treated as minor.
Contract not in writing
Every employment contract must be written and signed before work starts. A missing written contract is fined €766.94 to €7,669.38 per breach, and more for a repeat.
Protected employee dismissed
Dismissing a mother of a child under 3 for staff cuts, less work, performance or discipline needs the labor inspectorate’s prior permission. Without it, a court annuls a challenged dismissal.
No legal ground for dismissal
Dismissal with notice needs a ground the Labor Code lists. An unlawful dismissal can mean reinstatement and gross pay for time out of work, up to 6 months.
Disciplinary dismissal mishandled
Hear the employee or take written explanations before a disciplinary dismissal, or a court cancels it on that ground alone, unless the employee’s own fault prevented it. As a rule, it must come within 2 months of discovery and a year of the breach.
Fixed terms misused
A fixed term for work that isn’t temporary must run at least a year, unless the employee asks for less in writing, and can be renewed only once. Otherwise, it’s open-ended.
Overtime outside the rules
Overtime is allowed only in listed cases, up to 150 hours a year, or 300 under a sector agreement, at 50% to 100% extra. Breaches are fined €766.94 to €7,669.38.
Dismissal compensation missed
Dismissal for closure, staff cuts or less work owes up to 1 month’s gross pay while out of work. Once an employee qualifies for a retirement pension, any ending owes 2 months’ pay, or 6 after 10 of the last 20 years with you, once only.
Not sure where you stand? Our HR Compliance Audit gives you a structured review of your HR compliance risk in Bulgaria, with a clear action plan.
Key Sectors in Bulgaria
Bulgaria’s leading export sectors in 2025, based on Eurostat trade data.
Hiring in Bulgaria: Your Questions Answered
Questions companies ask before they hire in Bulgaria.
Do we need written employment contracts in Bulgaria?
Yes. Every employment contract must be in writing and signed before work starts. Within 3 days of signing, you enter it in the employment register kept by the National Revenue Agency, and the employee can’t start work until you give them copies of the contract and the entry. The contract also sets an equal notice period for both sides. We draft contracts that comply with Bulgarian law.
Is there a probation period in Bulgaria?
Only if the contract sets one. Probation lasts up to 6 months, or up to 1 month when the job is for less than a year, and it can be agreed only once for the same job with the same employer. The side it favors, or both sides if the contract doesn’t say, can end the contract without notice before probation ends. We make sure your contracts reflect these rules.
How much does an employee in Bulgaria cost on top of salary?
Non-wage costs add about 15% on top of gross wages (Eurostat, 2025), and social security contributions are due on monthly pay between a minimum set for each type of job and €2,300 since August 1, 2026. You also pay 70% of average daily gross pay for the first 2 working days of sick leave. Our Compensation & Benefits Strategy builds a reward framework aligned with Bulgarian law, market data and internal equity.
How many hours can staff in Bulgaria work?
Full time is 8 hours a day and 40 hours a week, with at least 12 hours’ rest between working days, as a rule. Overtime is allowed only in cases the Labor Code lists, up to 150 hours a year, or 300 under a sector agreement, and earns at least 50% extra, 75% on rest days and 100% on public holidays. We structure work schedules that comply and still leave room for flexibility.
What happens when an employee in Bulgaria is off sick?
You pay 70% of average daily gross pay for the first 2 working days of sick leave. After that, the National Social Security Institute pays 80% of average daily gross pay, capped at average daily net pay, or 90% after a work accident or occupational disease. Pay for general illness needs 6 months of insurance, except for employees under 18. We put clear sick leave policies in place.
How much paid leave do employees in Bulgaria get?
At least 20 working days a year, at least 5 more for hazardous work or irregular hours, and 26 for under-18s and for employees with reduced work capacity of 50% or more. Ten public holidays on fixed dates and four Easter days are days off; a fixed holiday on a weekend moves to the next working day or days. We keep you compliant with leave entitlements and help you offer a competitive benefits package.
Is it really that hard to terminate employees in Bulgaria?
It’s structured, not impossible. You can dismiss with notice only on grounds the Labor Code lists, such as closure, staff cuts or poor performance. Notice is 30 days on open-ended contracts unless a longer period, up to 3 months, is agreed or a collective agreement links it to length of service. Employees on maternity or paternity leave can be dismissed only on closure, pregnant employees only on narrow grounds, and some others need the labor inspectorate’s prior permission. We guide you through every step.
Can we put everyone on fixed-term contracts in Bulgaria?
Not indefinitely. As a rule, a fixed term can last up to 3 years and is for temporary, seasonal or short work. For work that isn’t temporary, it must run at least a year, unless the employee asks for less in writing, and it can be renewed only once with the same employee for the same work. Otherwise, the contract counts as open-ended. We make sure every fixed-term contract meets these rules.
Do collective agreements apply to us in Bulgaria?
Only if one covers you. A company agreement between you and a union applies to its members, and other employees can join it in writing. Whom a sector agreement binds isn’t yet set out expressly; a pending bill would bind employers in the signing organization. The labor minister can extend one sector-wide at the parties’ joint request if all nationally representative organizations consent in writing. We keep you compliant with any agreement that applies, with as much flexibility as it allows.
Do we need employee representatives in Bulgaria?
Employees can elect representatives at a general assembly to speak for them. With 50 or more employees, or 20 or more in a separate unit, the general assembly elects information and consultation representatives, and you must inform and consult them on jobs and changes to work organization. Dismissing a representative for staff cuts, less work, poor performance or discipline needs the labor inspectorate’s prior permission. We guide you in working with employee representatives.
What does pay transparency mean for us in Bulgaria?
Bulgaria missed the June 2026 deadline for the EU Pay Transparency Directive. The government’s bill, which amends the Protection Against Discrimination Act and the Labor Code, has been in committee in the National Assembly since September 11, 2026. Already, the Labor Code gives women and men the right to equal pay for the same work or work of equal value. Our Compensation & Benefits Strategy covers EU Pay Transparency readiness.
What happens if we fail a labor inspection in Bulgaria?
Most breaches of labor law are fined €766.94 to €7,669.38, the Labor Code’s BGN 1,500 to 15,000 converted at the fixed euro rate, and €7,669.38 to €10,225.84 for a repeat breach. A missing written contract or register entry is fined for each breach and can’t be treated as minor. We conduct regular compliance audits so your documentation is ready for inspection.
Plan Your Bulgarian Expansion With an HR Specialist
Tell us about your plans for Bulgaria, whether it’s your first hire or a growing team. We’ll tell you honestly what we see.
- Bulgaria and 27+ European countries, through one team.
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