Employment Contract in Bulgaria: A Guide to Current Legislation

To start a company in Bulgariaalso entails the obligation to fully comply with local labor laws. For any employer, correctly formalizing an employment relationship is essential to ensure legal compliance and transparency within the business. In this context, understanding the requirements set by the Bulgarian Labor Code is a key step.

Content of the Employment Contract According to Bulgarian Law

In Bulgaria, every employment relationship is legally established through a written employment contract. Written form is mandatory regardless of the contract’s duration, whether indefinite—being the standard—or fixed-term, which is considered exceptional and subject to specific conditions.

According to Article 66 of the Bulgarian Labor Code, the contract must contain the following details:

– identification data of the parties;
– the workplace address, which may coincide with the employee’s address only if expressly stated and compliant with the regulations on remote work;
– the job title, selected from the national job classification list, and a detailed job description, attached as a separate document;
– contract duration (if fixed-term) and the probation period, which may range from 1 to 6 months and can be unilaterally or mutually binding;
– the contract signing date and the actual start date of the employment;
– the daily or weekly working hours;
– the agreed remuneration, including any bonuses or additional allowances;
– the notice period for termination, ranging from 30 days to 3 months;
– the number of paid annual leave days, with a legal minimum of 20, extendable by agreement between the parties.

Read also: VAT Refund in Bulgaria: How It Works and What the Deadlines Are

Employment Contract in Bulgaria: Tax Obligations and Contract Registration

Once signed, the employment contract must be registered within three days at the Bulgarian National Revenue Agency. Only after the contract has been officially registered can the employee legally start working. Failing to register the contract renders the employment relationship legally non-existent.

After signing the contract, the employee has the right to begin work within one week. If the employment does not commence within this period, the relationship is considered void.

The Electronic Work Record Book

The employer is legally required to provide the employee with a work record book within five days of their first day of employment. This document formally certifies employment history (job title, salary, start and end dates, etc.) and must be updated as necessary.

As of June 1, 2025, the system has been digitized: the electronic work record book has been introduced, now part of the Unified Electronic Employment Record. This digital file is managed directly by the Bulgarian tax authorities and serves as an official, legally valid document.

Social Contributions and Job Classification

Social security contributions are shared between employer and employee: 60% is paid by the employer and 40% by the employee. The salary must not fall below the national minimum wage, which is periodically updated by the Bulgarian budget law.

When assigning a job title, the employer must choose the most suitable option from the official classification list, which has not been updated since 2008. A detailed job description ensures transparency by outlining the actual responsibilities of the position.

Read also:  Romania and Bulgaria: taxation comparison

Employment Contract in Bulgaria: Health and Safety Obligations

Employers are also required to sign a contract with an occupational health service provider to comply with regulations on employee health and workplace safety. This obligation falls under the general framework of workplace protection and accident prevention.

Complying with the legal requirements for signing an employment contract in Bulgaria is fundamental for any company wishing to operate within the law. Properly managing employment documentation and procedures protects both employer and employee while preventing disputes and penalties.

For expert assistance with contracts, social contributions, and tax compliance in Bulgaria, businesses can rely on Accountancy Bulgaria — a specialized company advisor in Bulgaria helping foreign companies navigate Bulgarian regulations effectively.