Labor rules & costs in Bulgaria
Every entrepreneur, small business owner or CEO who runs business should know in general what are the labor laws & labor costs in Bulgaria. Here we attempt to present the overall situation of the labor market in Bulgaria and to answer some of the most important and frequent questions our clients have asked us throughout the years.
The total amount for the employer is 17.4% of the income, please read details here.
There are no legal restrictions for the terms of the civil (service) contracts.
The right of using the annual paid time off has nothing to do with any absence due to pregnancy or maternity leave. Therefore, the number of days each employee can use as a paid annual time off cannot be reduced and these days are accumulating during the period of pregnancy or maternity.
The right of using the annual paid time off has nothing to do with any absence due to sickness or any other medical leave. Therefore, the number of the days each employee can use as a paid annual time off cannot be reduced and these days are accumulating during the period of sickness.
The minimum amount of insurable earnings (MAIE) is the amount used as a base for calculation of the social contributions. The amount varies due to the position and economic activity of the employee. If the earnings before taxes are less than MAIE, the social contributions are calculated based on MAIE. If the earnings before taxes are higher than MAIE, the social contributions are calculated based on the earnings before taxes but not exceeding the maximum amount of insurable earnings.
The amounts of MAIE and the maximum amount of insurable earnings are determined by the State Budget of RB Act. Currently (2015), the maximum amount of insurable earnings is 2600 BGN. For amounts exceeding this limit no social charges are due.
For more information about the amounts please contact our payroll specialist they would love to answer your questions and discuss with you your issues.
The base salary is stipulated in the labor contract. If you add all additional payments made on top of the base salary you receive the gross salary. Often the gross salary is used as a base for calculation of different compensations as per Labor Code in Bulgaria – compensations for non-used annual leave or such paid by the employer when terminating labor contracts.
The minimum monthly salary (MMS) is determined by law and it is the same for everyone, regardless of their profession. It is the minimum amount of the salary received by a full-time (8 hours daily / 40 hours weekly) employee monthly. MMS currently is 360.00 BGN and from July 1. 2015 will be 380.00 BGN. The minimum amount of insurable earnings (MAIE) varies due to position (job) of the employee and economic activity of the employer. It is the minimum base amount for calculating the social contributions.