Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
BGN лв (Bulgarian Lev)
Employer contributions
~17.8% employer SS (pension 9.7% + health 4.8% + unemployment 0.6% + CELA 1.2% + work accident ~0.4-1.1%)
Minimum wage
1,077 BGN (2026)
Payment frequency
Monthly
Calendar year (Jan 1 - Dec 31)
Capital
Sofia
Timezone
EET (GMT+2)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~2,973 BGN total
/month
For a gross salary of
2,500 BGN gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
~17.8% employer SS (pension 9.7% + health 4.8% + unemployment 0.6% + CELA 1.2% + work accident ~0.4-1.1%)
Mandatory extras
Annual Bonus
Monthly admin
Monthly payroll / Декларация обр. 1 + 6 by 25th / NOI contributions
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~2,973 BGN total
Example gross salary
2,500 BGN gross/month
~1,793 BGN net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~473 BGN employer SS
Employer contributions on that salary
Employer contributions
~17.8% employer SS (pension 9.7% + health 4.8% + unemployment 0.6% + CELA 1.2% + work accident ~0.4-1.1%)
Employee contributions
~12.9% employee SS
Total cost above gross
~18.92% above gross
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~1,800 BGN
Per month
Sofia
2,500 - 4,500 BGN
~30%
Plovdiv
1,800 - 3,000 BGN
~10%
Monthly gross. National average salary per year:
~21,600 BGN
Minimum wage
1,077 BGN (2026)
Paid:
Monthly
Extra pay
Annual Bonus
Discretionary
December
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
10% flat income tax
Tax year:
Calendar year (Jan 1 - Dec 31)
Filing calendar
Monthly by 25th
Social security payments
April 30
Income tax
By end of February
Employee tax certificate
Служебна бележка
April 30
Annual return
Данъчна декларация ГДД
Late payment penalties
Late SS: 0.06% daily; late income tax: 0.06%/day + BNB base rate
Who collects what
NAP
Income tax
NOI (НОИ)
Social insurance
Изпълнителна агенция 'Главна инспекция по труда' (ГИТ)
Labor law enforcement
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Платен годишен отпуск
20 working days
Public holidays
15 public holidays
Sick leave
Болничен лист
NOI pays from day 4 at 80% (first 3 days employer at 70%)
Maternity leave
58.6 days (maternity) + 14 weeks additional
90% from NOI
The contracts you can use, and what ending an employment relationship costs.
Permanent
Трудов договор за неопределено време
Fixed term
Трудов договор за определен срок
Independent contractor
Граждански договор / Фрийлансер
Collective agreements
Колективен трудов договор (КТД)
Ending employment
Обезщетение при уволнение
How it is calculated
1 month per year (max 6 months)
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
Gray Economy / Undeclared Wage Supplements
Risk Level: HIGH
Bulgaria's labor market has a persistent practice of paying part of salary 'in cash' undeclared (сива икономика). NRA and GIT conduct joint inspections targeting industries like construction, hospitality, and retail. Penalties include full back-SS calculation on imputed income plus 15% surcharge.
Undeclared Employment (Недеклариран Труд)
Risk Level: HIGH
Employees working without a registered labor contract constitute one of Bulgaria's top labor violations. GIT (labor inspectorate) spot-checks can result in fines of BGN 1,500-15,000 per undeclared worker and temporary business closure.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.