Bulgarian labour law is protective and formal: much of it turns on whether documents were signed and filed on time. For a foreign-owned company the first hire is also the point where it starts running a monthly payroll in Bulgaria. Getting the set-up right once makes every later hire routine.
Before the first day
Employment contract
A written contract stating the position, place of work, pay, working time, leave and notice. Indefinite contracts are the rule; fixed-term ones need a legal ground.
Job description
Signed together with the contract; it defines what the employee must do and is often decisive in disputes.
NRA notification
The employer notifies the National Revenue Agency within three days of signing. The employee may not start work until they have received a copy of the contract and of the registered notification.
Occupational health and safety
The company contracts an occupational health service, has the workplace risks assessed and gives the employee the required safety briefing.
Internal rules
Working-time and pay rules, and the employment record book entries, are set up from the start.
The key terms in 2026
- Minimum wage: EUR 620.20 a month for full-time work; part-time pay is proportional.
- Working time: a 40-hour week as the standard full-time schedule.
- Probation: up to six months, if agreed in the contract.
- Paid annual leave: at least 20 working days a year.
- Notice: for indefinite contracts, the statutory default is 30 days unless the contract sets a longer period within the legal limits.
What an employee costs
Gross pay is not the full cost. The employer and the employee each pay a share of social and health insurance contributions — together roughly a third of gross pay — on earnings up to the maximum insurable income, which is EUR 2,300 a month from August 2026. The employer also withholds 10% personal income tax from the employee's pay. The company pays the salary, files the payroll declarations and pays the tax and contributions by the 25th of the following month; most companies use a local payroll accountant for this.
Employee or contractor?
A civil contract for services suits genuinely independent work with a defined result. Where the person works fixed hours, under the company's direction, as part of its regular staff, the relationship is employment whatever the paper says, and the labour inspectorate can impose fines and require a proper contract. When in doubt, hire as an employee.
Hiring someone who is not an EU citizen
Non-EU nationals need a right to work before they start — usually a single permit or, for highly qualified roles, an EU Blue Card. The employment contract then takes effect only once the residence document is issued.
Questions clients ask
Can our first employee work remotely from another country?
That is a different situation. Employing someone who lives and works abroad usually brings in that country's labour and social security rules, and sometimes a tax presence there. It needs advice in both countries before the contract is signed.
Do we need an accountant before hiring?
In practice, yes. Payroll involves monthly declarations, calculations of contributions and annual reports, and mistakes accumulate quickly. Most foreign-owned companies use a local accountant from the first hire.
What if we got the notification deadline wrong?
Report it as soon as possible. Late notification is fined, and an employee working without a registered contract exposes the company to higher penalties. Correcting it before an inspection is always the better position.
This guide is general information about Bulgarian law as it stood on the date of publication. It is not legal advice for your specific case.
