Hiring in Bulgaria

The contract sets out role, salary in EUR, working time, leave, notice and confidentiality terms. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

Contracts are drafted in Bulgarian, usually alongside an English version, and must be registered with the National Revenue Agency within 3 days and before the first working day.

Fixed-term contracts are limited to temporary, seasonal or short-term work, with narrow exceptions, so most EORs default to indefinite terms.

Set probation from day one. Probation cannot be extended beyond 6 months or repeated for the same role, though time off for sickness or leave does not count towards it.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Overtime is paid at a premium of at least 50% on working days, 75% on rest days and 100% on public holidays, with an annual cap of 150 hours.

Most professional hires are put on irregular working hours, which compensates extra weekday hours with at least 5 days of additional paid leave rather than overtime pay. Put the position in writing either way.

Market practice for professional roles is 20 to 25 days, and irregular working hours add at least 5 more, so quote the combined figure when you budget.

The employer pays the first 3 days of sick leave at 70% of pay, with social security covering the rest. Maternity leave runs to 410 days and is paid by the state, not the employer, so your cost is cover for the role rather than pay.

Either side may terminate on notice or pay in lieu. Redundancy and closure trigger at least one month's gross pay as statutory compensation, and some protected employees can only be dismissed with prior Labour Inspectorate approval.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave and any statutory compensation. Mutual termination is common and often cleaner. Unlawful dismissal claims can end in reinstatement, so keep a documented reason.

Private medical cover, food vouchers and sports cards are standard for professional roles even though they are not mandatory.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer social security adds 18.92% to 19.62% on top of gross salary, capped at EUR 2,300 of monthly insurable income. That is before the EOR fee.

Length-of-service pay is the trap. Employees earn at least 0.6% of basic salary for each year of relevant experience, including with previous employers, so confirm whether a quoted salary is basic pay or the total.

Ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all, and the cap of 20% third-country staff (35% for SMEs) applies to the sponsor, not to you.

Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Transfers outside the EEA need an adequacy decision or standard contractual clauses.

Ask where payroll data is hosted and who in the partner chain can see it.

Incorporation here is quick and the minimum capital is nominal, but the running cost is the point: local accounting, annual financial statements, audit thresholds, an occupational health service contract and payroll software set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.