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Hire in Bulgaria without an entity

Bulgaria is the most EU-integrated country in this set, simplifying cross-border invoicing, data residency, and travel. Sofia and Plovdiv host substantial outsourcing and software hubs. With Eurozone adoption from 2026, FX risk on BGN payroll disappears entirely.

Capital
Sofia
Currency
BGN (pegged to EUR at 1.95583; Bulgaria adopts the Euro from 1 January 2026)
Timezone
Europe/Sofia (EET, UTC+2)
Population
6.45M
English
EF EPI 2024: Very high proficiency band
IT workforce
100,000+ IT professionals (BASSCOM annual reports)
EU status
EU member (since 2007); Schengen full member (since March 2024); Eurozone entry 1 January 2026

Labor law in Bulgaria

Standard work week
40 hours across 5 working days; daily standard 8 hours (Labour Code, Article 136).
Probation max
Up to 6 months for indefinite contracts (Labour Code, Article 70).
Annual leave (min)
Minimum 20 working days per year; rises with conditions and tenure (Labour Code, Article 155).
Sick leave (paid)
Employer pays the first 3 working days at 70% of average daily salary. From day 4 onwards the National Social Security Institute (NSSI) pays at 80% (or 90% for occupational illness/injury). (Social Insurance Code.)
Public holidays
13 statutory days observed nationally (mix of national, religious, and historical holidays).
Notice period (min)
30 days for indefinite contracts from either side; up to 3 months can be agreed in the contract (Labour Code, Article 326).
Severance
Severance pay equal to 1 month's gross salary on redundancy (Labour Code, Article 222), with additional months for older employees and longer service per Article 220.

How payroll works

Personal income tax (PIT)
PIT: 10% flat on taxable income (gross minus mandatory employee social contributions).
Social contributions — employer
Employer-side social contribution: ~18.92% of gross paid by the employer on top of gross (split across pension, additional pension, illness, maternity, work-injury, unemployment, health). Total employer cost ≈ 119% of gross.
Social contributions — employee
Employee-side social contribution: ~13.78% of gross withheld from the employee. Combined social = ~32.70%.

Statutory minimum monthly salary from 1 January 2026: €620.20 gross (BGN 1,213). Maximum monthly contribution base for 2026: BGN 3,850. Bulgaria's Eurozone adoption from 2026 means salaries can be denominated and paid directly in EUR.

Average gross salaries — Bulgaria

Monthly gross amounts in local currency. Real employer cost = gross + employer social contributions (see above).

RoleRange (gross)
Software Engineer (mid)3,500 – 6,500 BGN
Software Engineer (senior)6,500 – 12,000 BGN
DevOps / SRE4,500 – 9,000 BGN
Customer Support (EN/DE)1,800 – 3,500 BGN
Sales Development Rep2,200 – 4,500 BGN
Accountant2,500 – 5,000 BGN

Local entity vs. Merot EOR

Direct entityMerot EOR
Setup time3–6 months5 business days
Local lawyerRequiredNot required
Local accountantRequired (€500–1,500/mo)Included
Compliance burdenYoursOurs
Office + IT equipmentYou arrangeIncluded optionally
Exit / wind-down3–6 months + fees30 days

Public holidays in Bulgaria

Jan 1
New Year's Day
Mar 3
Liberation Day
Apr-May
Orthodox Good Friday (movable)
Apr-May
Holy Saturday (movable)
Apr-May
Orthodox Easter Day (movable)
Apr-May
Orthodox Easter Monday (movable)
May 1
International Labour Day
May 6
St George's Day (Bulgarian Army Day)
May 24
Saints Cyril and Methodius Day
Sep 6
Unification Day
Sep 22
Independence Day
Dec 24
Christmas Eve
Dec 25-26
Christmas Days

Frequently asked questions — Bulgaria

When does Bulgaria adopt the Euro?

1 January 2026. The conversion rate is fixed at 1.95583 BGN = 1 EUR. Salaries can be denominated and paid in EUR from that date with no conversion overhead.

What's the minimum gross salary in 2026?

From 1 January 2026 the statutory minimum is €620.20/month gross (BGN 1,213). For competitive engineering or sales roles you'll pay several multiples of this.

How does the employer-cost math work?

Gross + ~18.92% employer-side social = total employer cost. For a €4,000 gross senior engineer, employer pays roughly €4,757/month all-in.

Is Bulgaria in Schengen?

Yes — full Schengen member since 31 March 2024. Travel for client visits requires no visa for EU/EEA passport holders.

How does sick leave compensation work?

Employer pays first 3 working days at 70%; NSSI covers from day 4 at 80% (90% for work injury/occupational illness).

What language does the team speak?

Bulgarian (Cyrillic). English fluency is very high in tech (EF EPI: very high band). German is common in BPO; Russian widespread among engineers over 35.

What's notice for an indefinite contract?

30 days from either side by default; the contract may extend this up to 3 months for senior roles per Labour Code Article 326.

Do you supply equipment for hires in Bulgaria?

Yes — sourced from Sofia distributors. Day-one delivery is standard.

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