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Useful: Labour conditions in Bulgaria

In regards to payroll administration below is a summary of the legal and market employment conditions in Bulgaria including social security payments to the state. The information covers the year 2007. Motion strictly follows the by law requirements, while at the same time being able to accomodate customer requests for additional information or different conditions other than the market ones.

Last revision - Oct 2007, reflecting the latest changes in social security contribution, effective as of October 2007


Labour market conditions in Bulgaria for the year 2007

 LawMarket
Probationary PeriodNot required3 months normally, maximum 6 months allowed
Probationary Period Extension if unsatisfactoryNot practicedNot practiced
Notice Period during probationary periodNot notice period requiredNo notice period required
Notice Period for normal contract30 days by defaultNormally 30 days
Fixed Term ContractYesYes
Indefinite ContractYesYes
Retirement Age M/FMinimum retirement age possible: Male - 60.5 years, Females - 55 years; Maximum retirement age: 65 years both Males and FemalesSame as law

Employment Conditions
Working Hours8 hours per day (7 hours for night work from 22:00-06:00), Normal working day until 20:008-10 hours
OvertimeMaxmimum 8 hours per week and maximum 2 hours per day allowed. Not allowed for more than 60 working days during a calendar year and not more than 20 consequetive working days. The emplyee must be compensated with reduced working time not later than 4 months. 50% extra is paid for overtime work during the week, 75% in weekends, 100% during official holidaysAs negotiated or by law
Vacation20 working days per year20 working days per year or more if negotiated
Birth of Child45 working days leave before birth and 45 working days leave after birthSame as law
Death of Spouse or child2 working daysMinimum 2 working days or as negotiated on a case by case basis
Death of Father or Mother2 working daysMinimum 2 working days or as negotiated on a case by case basis
Marriage2 working daysMinimum 2 working days or as negotiated on a case by case basis
Marriage of a childNoAs negotiated on a case by case basis
OthersFor compulsory military service 2 working days before and 2 working days after being called if called for 15 or more working daysSame as law. The compulsory military service is to be dropped as of 2008
Public Holidays3rd March (National Holiday), 1st May (Labour day), 6th May (Day of the Bulgarian Army), 24th May (Day of the Cyrillic alphabet), 6th September (Union Day), 22nd Semptember (Independence Day), 1st November, 24th-26th December (Christmas), 1st January (New Year), 2 days for Easter (Ortodox Easter)Same as law
Maternity Leave135 days leave allowed for each child, 45 days must be used before birthSame as law
Paternity and Parental LeaveUp to 2 years for 1st, 2nd and 3rd child, for more children up to 6 monthsSame as law

Remuneration
BonusNot requiredAs negotiated
Minimum wage180 BGN per month (92 EUR)300-400 BGN (153-205 EUR) average wage countrywide.
400-1000 BGN (205-511 EUR) large cities.
Some sectors require higher wages.
Vacation bonusNot requiredSome companies give an extra salary on Christmas or a vacation bonus
Months of salary payment1212
Housing AllowanceNot requiredGenerally not practiced
Training reimbursementNot requiredAs negotiated, usually companies pay for training

Social Coverage
Payment of salary after accident or sickness80% of salary prior to the event, 1st day paid by the employer, but not more than 15 working days during a calendar yearSame as law
Life insuranceNot requiredGenerally not practiced unless for high managment positions
Early retirementMinumum 15 working years and 65 years of ageGenerally not practiced. Employees tend to work after retirement
PensionIn order to get pension the sum of the working years plus age must equal to 98 for males and 88 for femalesSame as law
Principle of the pension arrangementsPension is received directly from the government each month. Can be received in cash from the local post office or transferred to a bank account.Same as law
Widows and orphan pensionsIf one descendant - 50%, if two - 75%, if three ore more 100%. In case of event of both parents the pension is a sum of the pensions of both parents.Same as law
Accident Insurance80% of salary paid in case of sickness and 90% paid in case of work accident based on the average salary for the past 6 months, but not less than the annual salary for the countrySame as law
Health InsuranceCompulsory health insurance is to be paid to the govenment owned NHIF. Health insurance covers most health problems on a co-payment or full reimbursement basis up to some limit per year. State health insurance is not of sufficient quality.Larger companies tend to sign up for private health care for their employees.
ChildcarePaid by the governmentSame as law
Child AllowanceNo limitNo limit

Social Insurances
Pension22% (7.7% pays employee, 14.3% pays employer)Voluntary pension can be paid via a private pension fund.
General illness & maternity3.5% (1.225% pays employee, 2.275% pays empoyer)Same as law
Unemployment insurance1% total (0.35% from employee and 0.65% from employer)Same as law
Professional and non-professional accident insurance0.4% - 1.1% employer only (depending on the economic sector)Same as law
Loss of earnings insurance for sicknessNot requiredNot practiced
Health Insurance6% health insurance (2.1% paid by the employee, 3.9% by the employer)Larger companies tend to insure their employees in a private health insurance fund, or directly provide private health care via a private medical center or a private hospital.
Fund for guaranteering the payments to employees0.5% employer onlySame as law
Total paid by employer22.025% - 22.725%Same as law
Total paid by employee11.375%Same as law
Total social contributions33.4% - 34.1%33.4% - 34.1% compulsory payments. Additional payments depend on the risks covered. No market estimate possible as each company decideds individually.
Prepared by © Motion Ltd. 2007. Copying prohibited!
 
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