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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. Note: Merot operates as EOR in North Macedonia and Kosovo; for Bulgaria we provide hiring advisory and partner with vetted local payroll providers.

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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