CURRENT HIRING FOR BULGARIA

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Bulgaria has a variety of visas available for foreign nationals seeking entry into the country. As a member of the European Union (EU), Bulgaria allows citizens of other EU member states to work without a visa or permit.

For other foreign nationals, Bulgarian visas include:

• Type A visas for airport transit

• Type C visas for short stays

• Type D visas for long stays

To obtain a Bulgarian work permit, foreign workers will need Type D visas.

If any of your company’s employees need to travel to Bulgaria for a short time for a business trip or conference, they’ll most likely need a Type C visa to do so.

The Bulgarian employer is responsible for submitting the work permit application on behalf of foreign employees. However, the employee will need to provide some of the documents required along with the application. Required documents include:

• Three passport photos of the applicant

• A copy of the employee’s passport

• A document stating the reason for requesting the work permit

• A copy of the employer’s certificate of incorporation in Bulgaria

• The employment contract

• Documents proving the employee’s qualifications, such as a diploma, relevant certifications, and evidence of previous work experience

• Any additional documents relevant to the job position

• A completed work permit application form

The employee will also require a long-stay visa. To obtain one, they’ll need to produce the following documents:

• A copy of the first page of their passport

• A passport photo in color

• Proof of the reason for travel, such as the work permit

• Proof of medical insurance

• Evidence of sufficient financial means

• Proof of accommodation in Bulgaria, such as a lease agreement

• A police background check

Work permits are required to hire a foreign national and evidence must be presented as to why a local person cannot be hired for the position. By law, a decision whether to issue the permit must be reached within a month.

The Bulgarian Labour Code governs the worker-employer relationship in Bulgaria, regardless of worker or corporate nationality. Written employment contracts are required under the code, and it has clear rules governing employee termination, including protection from unlawful dismissal. Employees may sue employers if they feel they have been unlawfully dismissed. Remedies include reinstatement, back wages, and modification of employment records.

The general rule in Bulgaria is that employment contracts are executed for an indefinite duration. If the employment contract is executed for a fixed term, an explicit agreement between both parties is required and the contract cannot exceed three years. A fixed-term contract can be used under the following circumstances:

• For completion of specific work (project work)

• For temporary replacement of absent employee.

• For short-term, temporary, or seasonal work (usually for several days/weeks, up to 3 years)

• For the usual business of the employer in case of specific and objective production, market and other circumstances which exist at the time of the conclusion of the contract and necessitate its fixed-term nature.

If the conditions for the fixed-term contract are not present, the contract is considered to be for an indefinite duration (the fixed-term clause is null and void).

The standard workweek in Bulgaria consists of a maximum of 8 hours per day, 5 days a week.

Overtime can be performed if agreed upon by both parties and is only permitted if the work performed is in relation to public security or if it relates to an emergency repair or ensures work safety.

The additional payment for overtime work is as follows (the compensation of overtime work with additional leave is forbidden):

• 50% on weekdays

• 75% on weekends

• 100% on public holidays

Bulgaria celebrates 12 public holidays for which employees are given the day off, including:

• New Year’s Day

• Liberation Day

• Orthodox Good Friday

• Orthodox Easter Monday

• Labor Day

• Saint George’s Day / Army Day

• Culture & Literacy Day

• Unification Day

• Independence Day

• Christmas Eve

• Christmas Day

• Second Day of Christmas

Public holidays that occur on the weekend are carried over to the following Monday (with the exception of Easter Saturday and Sunday). For faith groups other than Eastern Orthodox Christians, Bulgarian labor law and legislation on the civil service permits days off, either as paid or unpaid leave, for these groups’ holiest days. Bulgaria’s Cabinet decrees such a list each year.

Employees in Bulgaria are entitled to a minimum of 20 business days off per year. The employees should use their annual leave entitlement during the year earned.

If annual leave remains unused, the days that have remained unused shall be transferred to the following calendar year. According to the Labour Code, the annual paid leave shall lapse within 2 years of the end of the year for which it is due or as of the end of the year in which the reason for its non-use is no longer present.

On termination of their employment contract, employees are entitled to receive the monetary value of their paid leave entitlement.

The three days of sick leave are paid for by the employer based on the employee’s average daily wages. Further sick leave will be paid by the National Social Security Fund. In all cases, the employee is obliged to request a sickness certificate issued by their physician or relevant medical institution. The sick leave or injury indemnity payments amount to the following:

• 70% of an employee’s daily gross salary

• 90% of an employee’s daily gross salary in the case of a work-related accident or illness.
  An obligatory six months of work (and social security payments) must be completed before the employee is eligible for sick leave compensation, unless the sick leave is due to a work accident or a professional illness, or if the employee is a minor.
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The maximum allowed sick leave on an uninterrupted basis is 18 months.

Carers’ Leave: If an employee has a disabled child or ill child, or another disabled or ill family member, the employee is entitled to sick leave as if it were his/her own disability or illness.

Pregnant employees are entitled to 410 days of paid maternity leave, 45 of which must be taken before giving birth. Employees on maternity leave receive indemnity payments from the National Social Security Fund which amount to 90% of the employees’ gross salary.

The father is entitled to 15 days of paid paternity leave after the birth of a child. Once the child has reached at least 6 months, the father can use any unused maternity leave with the mother’s consent.

Adoptive parents are entitled to the same rights mentioned above with the exception of the 45 days taken prior to giving birth for the adoption of a child under 5 years of age from the date of adoption.

Once the maternity leave has expired, an employee is entitled to paid parental leave until the child reaches two years of age amounting to the following:

• Two calendar years for the first, second and third child.

• 6 months for each additional child.

Parental Leave is subject to some restrictions, the father of a child (eight years old or younger) is entitled to leave of up to two months. In order to exercise this right, the employee must notify the employer at least ten working days in advance. Fathers using such leave are entitled to statutory compensation for the leave period in accordance with amendments to the Social Insurance Code.

Food Vouchers are common in Bulgaria and are tax-exempt up to BGN 200 per month.

Private health insurance is sometimes provided by employers.

Generally, we recommend budgeting 45%  for benefits on top of the gross salary to calculate the total employee cost including benefits in Bulgaria.

The 13th-month bonus in Bulgaria is considered a gratuity and is not required by local law. An employer’s internal rules regarding how bonuses are paid out should be followed and bonus policies should be communicated to employees to avoid possible labor law discrimination disputes.

Health insurance is provided by the National Health Insurance Fund and it is mandatory that all residents contribute to this fund. 

The employer can set a probationary period in the employment contract not to exceed 6 months.

Resignation or Termination Notice Period: Employment contracts may be terminated with or without notice depending on the circumstances or by mutual consent.

• If the employee or employer terminates an indefinite employment contract with notice, at least a 30-day notice is required.

• The notice period for a fixed contract is 3 months but not more than the remaining period of the contract.

• No notice is required if the employment contract is due to expire (as in the case of a fixed contract).

Severance Pay: There is no statutory requirement regarding severance pay, however, employees are entitled to redundancy pay equal to 1 month’s salary in the case of individual or collective dismissal on economic grounds.

• If employment is terminated as a result of illness and the employee has been in service for at least 5 years, 2 months’ severance pay applies.

• If employment is terminated because the employee has acquired the right to pension, 2 months’ severance pay applies or 6 months’ if the employee has been in service for at least 10 years.

Employees receive indemnity payments from the National Social Security Fund; the amount is determined by the Social Security Budget Act.

Social security contributions are calculated as follows:

• Basic Social Security (unemployment, etc.): 24.7% to 25.4% of gross salary.

• Pension Insurance: 5% of gross salary.

• Health Insurance: 8% of gross salary.

Of the above, the employer pays 60% and the employee the remaining 40%. Furthermore, the employer has to contribute 0.4% to 1.1% of gross salary for accident insurance.

It can be difficult to obtain a Bulgarian work permit because the country is highly selective when it comes to immigration. Employers must apply for the permit on behalf of foreign workers, and they have to prove to the National Employment Agency that the position cannot be filled by any job-seeking Bulgarian nationals.

Once all the necessary documents are prepared, the employer should submit the application to the Employment Service Directorate within the National Employment Agency. Within three business days, the agency will verify the documents and forward them to the executive director of the agency. The director has one month to make the final decision regarding the issuance of the work permit.

Once the permit is issued, the employer must register the employee with the local Employment Office in Bulgaria.

A Bulgarian work permit is valid for up to one year, after which it can be renewed as long as the conditions of employment have not changed.

After obtaining a work permit, the employee will need to apply for a Type D visa at the Bulgarian embassy or consulate in their country. In addition to the required documents stated in the previous section, applicants must attend a personal interview when applying for a Type D visa. Upon the issuance of the long-stay visa and work permit, the employee may travel to Bulgaria and begin working.

The Bulgarian government does not issue open work permits to foreign nationals. Before obtaining a work permit, it’s essential for workers to secure a job with a company based in Bulgaria