What is an employer of record?
An employer of record is a third-party partner that legally hires talent on behalf of companies expanding into new international markets. The EOR manages payroll, taxes, benefits, and compliance, while the company continues to oversee the supported employee’s day-to-day work.
Velocity Global’s Employer of Record (EOR) solution simplifies cross-border hiring. Our solution removes the need to navigate unfamiliar employment laws or establish a local presence. Here’s how an employer of record works.
Employment Guide to Hiring in Bulgaria
Explore the topics below to learn everything you need to know about hiring employees in Bulgaria.
Hiring in Bulgaria: Key employment considerations
Employee agreements
Written employment agreements are mandatory in Bulgaria and must be signed before the start date. These contracts should include details on the role, compensation, working hours, contract duration, and notice periods.
Probationary periods
Probation can last up to six months. During this period, either party may terminate the agreement with three days' written notice.
Average working hours
The typical Bulgarian workweek is 40 hours, spread across five eight-hour days. Daily rest of at least 12 hours is required, and overtime must be paid at a higher rate.
How an employer of record simplifies hiring in Bulgaria
Hiring through an EOR streamlines the process and eliminates the need to establish a local business entity. Velocity Global ensures every step aligns with Bulgarian labor laws and EU standards.
Its team handles:
- Drafting locally compliant contracts
- Managing onboarding documentation
- Registering supported employees with local authorities
- Ensuring compliance with labor standards
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Payroll in Bulgaria
Payroll cycle
Employees are typically paid monthly, no later than the last business day of the month.
Minimum wage
As of 2025, Bulgaria’s monthly minimum wage is BGN933 (according to the National Statistical Institute).
Bonus payments
Bonuses are common and often tied to performance. They are not mandatory unless specified in a contract or collective agreement.
How an EOR streamlines payroll
An EOR ensures every payroll cycle is timely and accurate. Velocity Global calculates taxes, withholds the right deductions, and issues payslips through our Global Work Platform™. Companies stay compliant, and supported employees receive accurate and timely payments.
Taxes in Bulgaria
Tax deadlines
Employers must file taxes and remit income tax and social contributions by the 25th of the following month.
Tax rates
Bulgaria has a flat 10% personal income tax rate, one of the lowest in the EU. Social contributions total 32.7%, shared between employer and employee, according to KPMG’s Bulgaria tax guide.
Health insurance
Employers contribute 8% of an employee’s gross salary to Bulgaria’s public health system.
Pensions
Pension contributions total 14.8% of gross salary and cover public and private pension schemes.
How an EOR supports tax compliance
Velocity Global ensures accurate withholdings, files all tax contributions on time, and monitors regulation changes. Our local experts keep businesses compliant and free from fines or delays.
Calculate payroll contributions in Bulgaria
Leave and time off in Bulgaria
Annual leave
Employees receive at least 20 days of paid vacation per year.
Parental leave
Maternity leave spans 410 days, with the first 135 days paid at 90% of salary. Fathers receive 15 days of paternity leave.
Sick leave
Employees can take up to 18 months of sick leave. The employer pays the first three days; the state covers the rest.
Public holidays
Bulgaria observes 15 national holidays annually. Substitute days off are not always granted for holidays falling on weekends.
How an EOR helps manage leave and PTO
Velocity Global tracks entitlements and ensures supported employees receive all required time off. Leave balances and approvals are managed directly through our platform.
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Employee benefits in Bulgaria
Statutory benefits
These include public healthcare, pensions, parental leave, and unemployment coverage.
Supplemental benefits
To stay competitive, many companies offer extras like:
- Private medical insurance
- Meal vouchers
- Transportation stipends
- Learning and development budgets
How an EOR helps administer benefits
Velocity Global provides access to attractive benefits that exceed what is legally required. Our solution collaborates with trusted local partners, manages enrollment, and offers ongoing support.
Terminations in Bulgaria
Notice periods
Notice typically ranges from 30 to 90 days, depending on the contract terms.
Severance pay
Severance is due only in specific cases, like redundancy or terminations without cause. In such cases, it is equal to at least one month’s salary.
How an EOR ensures compliant offboarding
Velocity Global manages end-of-employment processes, including notice periods, severance calculations, and final pay. Our solution ensures that all offboarding steps comply with Bulgaria’s Labor Code.
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How fast can I hire in Bulgaria through an EOR?
Most supported employees can begin within two to three weeks after the contract is signed.
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Will an EOR replace my HR team?
No. Velocity Global complements internal HR by handling compliance, payroll, and benefits.
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Can I offer equity in Bulgaria through an EOR?
Yes. The <a href="https://velocityglobal.com/global-equity/">Global Equity Program</a> enables compliant international equity grants.
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How do I stay compliant with Bulgarian labor law?
Velocity Global monitors legal updates and ensures that contracts, payroll, and benefits comply with local requirements.
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Can I convert contractors to employees in Bulgaria?
Yes. Velocity Global helps assess contractor risks and supports smooth transitions to full-time employment.