Bulgarian Employment Contracts and Hiring: 2026 Guide

The Bulgarian Labour Code at a glance

Bulgarian employment law is codified in the Labour Code (Кодекс на труда) — prescriptive, employee-protective, and strictly enforced by the General Labour Inspectorate. Written employment contracts are mandatory before the employee's first day; informal arrangements expose the founder to fines from BGN 1,500 to BGN 15,000 per breach.

Contract types

• Indefinite term — the default; preferred by law
• Fixed term — allowed only for specific, justified reasons (project completion, replacement of absent employee); max 3 years
• Trial period — up to 6 months, freely terminable by either side
• Part-time, distance work, remote work — all explicitly regulated

What every contract must contain

• Identification of parties
• Place and nature of work
• Start date and duration
• Base salary + components
• Working time and rest periods
• Notice period
• Paid annual leave entitlement

Sign before the start date; register at the NRA within 3 days of signing.

Working time and leave

• 40-hour standard week, max 48 with overtime
• Overtime: capped (150 hours/year for most); paid at 1.5×-2× depending on day
• Annual leave: minimum 20 working days; many founders offer 22-25 to compete
• Public holidays: 14 days/year (varies slightly with weekend rollovers)
• Sick leave: first 3 days paid by employer at 70%; from day 4, NSSI pays 80%
• Maternity leave: 410 calendar days, of which 45 before birth
• Parental leave: until child is 2; paid via NSSI

Termination — the strict part

Unlike at-will US employment, Bulgarian dismissal requires statutory grounds and proper procedure:

• By mutual agreement — clean, written; common settlement amount = 1-3 months
• With notice (typically 30 days for indefinite contracts) — only for specific reasons (redundancy, lack of qualification, etc.)
• Disciplinary dismissal — requires documented warnings and a written explanation from employee
• End of probation — terminable any day, no reason needed

Wrongful termination = reinstatement + back pay (often 6 months). Always involve a labour lawyer for non-probation dismissals.

Hiring foreigners

Citizenship	Permit required
EU/EEA/Swiss	None — register at the Employment Agency
UK	Single permit (residence + work)
Non-EU general	Work permit + visa D + residence permit
Non-EU high-skilled	EU Blue Card (faster, family-friendly)

Costs to budget per hire

• One-time onboarding admin: EUR 100-200
• Occupational health & safety: EUR 200-400/year
• Annual payroll & HR admin: EUR 30-60/employee/month

Contractors vs employees

Reclassification is a real risk. Indicators of disguised employment:

• Single client, exclusive
• Fixed monthly fee
• Working hours dictated by the company
• Use of company equipment and premises
• No business risk borne by the contractor

If reclassified, the company owes back social contributions, interest, and penalties retroactively.

Bottom line

Bulgarian employment law rewards founders who follow the script: written contracts before day one, NRA registration within 3 days, real OHS service, and lawyer-reviewed terminations. Done right, hiring in Bulgaria gives you EU-quality talent at a fraction of Western European cost.