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 |
| | Law | Market |
| Probationary Period | Not required | 3 months normally, maximum 6 months allowed |
| Probationary Period Extension if unsatisfactory | Not practiced | Not practiced |
| Notice Period during probationary period | Not notice period required | No notice period required |
| Notice Period for normal contract | 30 days by default | Normally 30 days |
| Fixed Term Contract | Yes | Yes |
| Indefinite Contract | Yes | Yes |
| Retirement Age M/F | Minimum retirement age possible: Male - 60.5 years, Females - 55 years; Maximum retirement age: 65 years both Males and Females | Same as law |
Employment Conditions |
|---|
| Working Hours | 8 hours per day (7 hours for night work from 22:00-06:00), Normal working day until 20:00 | 8-10 hours |
| Overtime | Maxmimum 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 holidays | As negotiated or by law |
| Vacation | 20 working days per year | 20 working days per year or more if negotiated |
| Birth of Child | 45 working days leave before birth and 45 working days leave after birth | Same as law |
| Death of Spouse or child | 2 working days | Minimum 2 working days or as negotiated on a case by case basis |
| Death of Father or Mother | 2 working days | Minimum 2 working days or as negotiated on a case by case basis |
| Marriage | 2 working days | Minimum 2 working days or as negotiated on a case by case basis |
| Marriage of a child | No | As negotiated on a case by case basis |
| Others | For compulsory military service 2 working days before and 2 working days after being called if called for 15 or more working days | Same as law. The compulsory military service is to be dropped as of 2008 |
| Public Holidays | 3rd 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 Leave | 135 days leave allowed for each child, 45 days must be used before birth | Same as law |
| Paternity and Parental Leave | Up to 2 years for 1st, 2nd and 3rd child, for more children up to 6 months | Same as law |
Remuneration |
|---|
| Bonus | Not required | As negotiated |
| Minimum wage | 180 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 bonus | Not required | Some companies give an extra salary on Christmas or a vacation bonus |
| Months of salary payment | 12 | 12 |
| Housing Allowance | Not required | Generally not practiced |
| Training reimbursement | Not required | As negotiated, usually companies pay for training |
Social Coverage |
|---|
| Payment of salary after accident or sickness | 80% of salary prior to the event, 1st day paid by the employer, but not more than 15 working days during a calendar year | Same as law |
| Life insurance | Not required | Generally not practiced unless for high managment positions |
| Early retirement | Minumum 15 working years and 65 years of age | Generally not practiced. Employees tend to work after retirement |
| Pension | In order to get pension the sum of the working years plus age must equal to 98 for males and 88 for females | Same as law |
| Principle of the pension arrangements | Pension 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 pensions | If 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 Insurance | 80% 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 country | Same as law |
| Health Insurance | Compulsory 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. |
| Childcare | Paid by the government | Same as law |
| Child Allowance | No limit | No limit |
Social Insurances |
|---|
| Pension | 22% (7.7% pays employee, 14.3% pays employer) | Voluntary pension can be paid via a private pension fund. |
| General illness & maternity | 3.5% (1.225% pays employee, 2.275% pays empoyer) | Same as law |
| Unemployment insurance | 1% total (0.35% from employee and 0.65% from employer) | Same as law |
| Professional and non-professional accident insurance | 0.4% - 1.1% employer only (depending on the economic sector) | Same as law |
| Loss of earnings insurance for sickness | Not required | Not practiced |
| Health Insurance | 6% 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 employees | 0.5% employer only | Same as law |
| Total paid by employer | 22.025% - 22.725% | Same as law |
| Total paid by employee | 11.375% | Same as law |
| Total social contributions | 33.4% - 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! |
