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UPDATED JUL 6, 2026💡 Everything you need to know to hire and manage employees in Bulgaria through Toku. Toku handles payroll processing, tax withholding, social contributions, and statutory compliance. This guide covers what you need to plan costs and manage your team.
At a Glance
| Item | Detail |
|---|---|
| Currency | Euro (EUR), adopted January 1, 2026 |
| Payroll cycle | Monthly. Toku runs one payroll per month in Bulgaria. |
| Estimated employer costs on top of salary | Approx. 19-20% (capped above EUR 2,111.64/month of salary) |
| Onboarding lead time | 5 business days |
| Standard working week | 40 hours |
| Probation period | 6 months |
| Annual leave | 20 working days minimum |
| 13th month salary | Not required |
| Minimum notice on termination | 30 days |
Onboarding a New Hire
Plan for 5 business days between submitting a new hire and their start date. Bulgarian law requires the employment to be registered with the authorities no later than 3 days before the first working day, so Toku needs the signed contract back in good time; your new hire just needs to sign promptly.
Submit your new hire through the Toku platform and we take it from there: local employment agreement, statutory registrations, and payroll setup. See Onboard Contributors as a Client Admin in Toku for the step-by-step process, and the Country Readiness Live Tracker for lead times across all countries.
Employer Costs
Bulgaria is one of the lower-cost EU countries to employ in. On top of gross salary, employers pay:
| Cost | Rate | Notes |
|---|---|---|
| State pension | 8.22% | On salary up to EUR 2,111.64/month |
| Supplementary mandatory pension | 2.80% | Same ceiling |
| Sickness and maternity fund | 2.10% | Same ceiling |
| Unemployment fund | 0.60% | Same ceiling |
| Work accident insurance | 0.40-1.10% | Varies by industry risk; same ceiling |
| Health insurance | 4.80% | Same ceiling |
As a rule of thumb, total cost of employment is roughly 119-120% of gross salary, and because contributions are capped at the EUR 2,111.64 monthly ceiling, the effective percentage falls for higher earners. There is no mandatory 13th month salary.
Employees pay their own social security (approximately 13.78%, same ceiling) and a flat 10% income tax. These are withheld from gross salary, not paid on top. Toku calculates and remits all of the above.
Compensation & Payroll
Toku runs one payroll per month in Bulgaria, and employees receive a payslip each cycle showing gross pay, deductions, and net pay. Since January 1, 2026 all salaries are denominated and paid in euros.
The national minimum wage is EUR 620.20 per month (2026). No 13th month salary or mandatory bonuses apply, though individual contracts or collective agreements can include bonus provisions.
Employment Contracts & Probation
- Toku issues a compliant local employment agreement for every hire and registers it with the National Revenue Agency, as required within 3 days of signing.
- Indefinite-term contracts are the standard. Fixed-term contracts are permitted for up to three years, and part-time employment is recognized.
- Contracts are in Bulgarian, with bilingual versions common for international employers.
- Probation is 6 months under Toku's employment agreement, which is also the statutory maximum. During probation, either party may end the contract without notice or stated grounds.
Working Hours
The standard working week is 40 hours over five days, 8 hours per day. Overtime is only permitted in specific circumstances defined by law and is tightly capped: 150 hours per year and 30 hours per month. When it does occur, overtime is paid at 150% on weekdays, 175% on weekends, and 200% on public holidays. Night work (10 PM to 6 AM) is limited to 7 hours per shift and carries additional compensation.
Leave Entitlements
| Leave | Entitlement | Who pays |
|---|---|---|
| Annual leave | 20 working days minimum | Employer |
| Sick leave (days 1-3) | Up to 3 days per illness at 70% of gross salary | Employer |
| Sick leave (day 4 onward) | As certified by a physician, at 80% of insurable income | Social security (NSSI) |
| Maternity leave | 410 calendar days (starting 45 days before the due date) at 90% of average gross salary | Social security (NSSI) |
| Paternity leave | 15 days from birth at 90% of insurable income | Social security (NSSI) |
| Parental leave | 6 months per parent, until the child turns 8 | Unpaid |
| Marriage leave | 2 days at full pay | Employer |
Unused annual leave carries over but should generally be used within the following two calendar years, and any unused balance is paid out on termination. Bulgaria's generous maternity and paternity benefits are funded by social security, not by you.
Public Holidays (2026)
Bulgaria has 18 non-working days in 2026: 15 official holidays (including a one-time Euro Adoption Day on January 2) plus 3 substitute days, since holidays falling on a weekend roll to the next working day. Bulgaria follows the Orthodox calendar for Easter.
| Date | Holiday |
|---|---|
| January 1 | New Year's Day |
| January 2 | Euro Adoption Day (one-time holiday for 2026) |
| March 3 | Liberation Day (National Day) |
| April 10 | Good Friday (Orthodox) |
| April 11 | Holy Saturday (Orthodox) |
| April 12 | Easter Sunday (Orthodox) |
| April 13 | Easter Monday (Orthodox) |
| May 1 | Labour Day |
| May 6 | St. George's Day / Day of the Bulgarian Army |
| May 24 | Day of Bulgarian Education, Culture, and Slavonic Literature |
| May 25 | Observed holiday for May 24 |
| September 6 | Unification Day |
| September 7 | Observed holiday for September 6 |
| September 22 | Independence Day |
| December 24 | Christmas Eve |
| December 25 | Christmas Day |
| December 26 | Second Day of Christmas |
| December 28 | Observed holiday for December 26 |
Benefits: Required vs. Common Extras
Statutory (included in employer costs above): state pension, public health insurance, maternity and paternity benefits, unemployment insurance, and occupational accident insurance. Employees are automatically enrolled in the public healthcare system.
Toku offers fully sponsored international health coverage through Remote Health. See Remote Health, Your Global Insurance Plan for coverage details and enrollment.
Common extras in Bulgaria include private health insurance (widely offered in the IT sector), extra annual leave beyond the statutory minimum, meal vouchers (tax-advantaged up to EUR 102.26 per month), transport allowances, and professional development budgets. Toku can advise on the cost impact of any of these.
Ending Employment
Employers in Bulgaria can only terminate with notice on specific statutory grounds (such as downsizing, reduced work volume, or lack of required qualifications), and protected categories, including pregnant employees and mothers of children under 3, need prior approval from the Labour Inspectorate. Involve Toku early so we can identify the right route. For the process, see How to Terminate an Employee or Contractor.
| Service | Notice |
|---|---|
| During probation | None |
| Indefinite-term contract | 30 days (up to 3 months if agreed in the contract) |
| Fixed-term contract | 3 months, not exceeding the remaining contract duration |
Severance depends on the grounds: termination for business reasons carries a statutory minimum of one month's gross pay, while mutual agreement terminations initiated by the employer require at least four months' gross salary. Unused annual leave is always paid out on exit. Toku will calculate the full cost for you before anything is signed.
Hiring Someone from Overseas?
EU, EEA, and Swiss citizens can work in Bulgaria without a permit. Non-EU nationals typically need a Single Residence and Work Permit (which involves a labor market test and workforce quotas) or an EU Blue Card for highly skilled roles, followed by a long-stay visa; permit approval takes roughly 10-30 days. Talk to Toku before extending an offer to a candidate who needs sponsorship.
Last verified July 2026. This guide is for general information and doesn't constitute legal or tax advice. Your Toku account manager can confirm specifics for your situation.