The Hardest Market · Bulgaria

Bulgaria's HR data

The rules and costs of employing people in Bulgaria (Sofia), from official sources, in English and Japanese.

On €2,500 a month, the employer's total cost is €2,914 a month, 1.17 times the salary, including 6 employer contributions and levies (listed below). The employee takes home €1,978 a month after contributions and income tax. Statutory annual leave: 20 working days minimum. Notice of dismissal: 30 days; up to 3 months by agreement.

39.1%women in management (2024, ILO)
1.17×employer's total cost on €2,500 a month, as a multiple of salary
12public holidays (2026)

Employment rules

Statutory annual leave20 working days minimum
Public holidays (2026)12 days
Notice of dismissal30 days; up to 3 months by agreement
Severance required by lawRedundancy: up to 1 month's pay while unemployed
Typical negotiated exitEmployer-offered exit: at least 4 months' gross pay (Labour Code art. 331)
ProbationUp to 6 months
Working hours8 h/day, 40 h/week
How hard is dismissal?Moderate: statutory grounds only; court can reinstate

Employer contributions

State pension (DOO Pensions fund)8.22%up to €26,281 a year
Universal pension fund (second pillar)2.8%up to €26,281 a year
Sickness and maternity (OZM fund)2.1%up to €26,281 a year
Unemployment fund0.6%up to €26,281 a year
Health insurance (NHIF)4.8%up to €26,281 a year
Occupational accident and disease fund (TZPB)0.4%up to €26,281 a year

Employee contributions

State pension (DOO Pensions fund)6.58%up to €26,281 a year
Universal pension fund (second pillar)2.2%up to €26,281 a year
Sickness and maternity (OZM fund)1.4%up to €26,281 a year
Unemployment fund0.4%up to €26,281 a year
Health insurance (NHIF)3.2%up to €26,281 a year

Take-home pay and employer cost by monthly salary

Monthly salaryEmployee contributionsIncome taxTake-homeEmployer costCost ÷ salary
€1,500€207€129€1,164€1,7841.19×
€2,500€302€220€1,978€2,9141.17×
€4,000€302€370€3,328€4,4141.10×
€6,000€302€570€5,128€6,4141.07×

Employee in Sofia on an indefinite employment contract (трудов договор), Bulgarian tax resident and a local national (Bulgaria has no expatriate tax regime), born after 31 December 1959 (so insured in a universal pension fund), single with no children, third-category (ordinary office) labour, salary only paid evenly as monthly pay (no bonus), calendar year 2026. Employer in an office activity (IT, finance, legal or accounting) with the 0.4% occupational-accident rate. Bulgaria adopted the euro on 1 January 2026, so all amounts are in euro. Flat 10% income tax on pay after the employee's mandatory contributions, with no personal allowance.

Questions

How much does it cost to employ someone in Bulgaria?

On €2,500 a month, the employer's total cost is €2,914 a month, 1.17 times the salary, including 6 employer contributions and levies (listed below). The employee takes home €1,978 a month after contributions and income tax.

How much annual leave do employees get in Bulgaria?

Statutory annual leave is 20 working days minimum. There are 12 public holidays in 2026.

How much notice is required to dismiss an employee in Bulgaria?

Notice of dismissal: 30 days; up to 3 months by agreement. Severance required by law: Redundancy: up to 1 month's pay while unemployed.

How hard is it to dismiss an employee in Bulgaria?

Moderate: statutory grounds only; court can reinstate. Typical negotiated exit: Employer-offered exit: at least 4 months' gross pay (Labour Code art. 331).

How long is probation in Bulgaria?

Up to 6 months.

What are the legal working hours in Bulgaria?

8 h/day, 40 h/week.

Sources: [1] [2] [3] [4] [5] Checked 2026-11-10; 2026 rates.