Most people know Bulgaria as a vacation country, but Bulgaria has a lot more to offer, like a comprehensive business environment with many opportunities for companies. But there is more, Bulgaria also has a large qualified and well educated workforce available. Company’s looking for well motivated people will be able to find such employees in Bulgaria against the lowest labour costs of Europe.
Bulgarian labour code
The Bulgarian labour laws are modern and flexible. The labour act is based on the standard European labour principles, but still flexible.
Characteristics of the Bulgarian labour code:
- Labour contracts can have an indefinite and definite term
- A 40-hour working week
- Every employee is entitled to 20 days of paid vacation
- The usual term of notice for termination of a labour contract is one month
- No permission of a court or government organisation is required to terminate a contract
- The minimum wage is 310 leva (about 160 euro)
- Incentives are available for the acquirement of certain professions. Incentives can be tax exemptions, tax discounts or educational programmes
The Bulgarian social security system
Usually social security is a complex topic in most European countries. Nevertheless Bulgaria has tried to make a very transparent and simple social security system.
Also the system for social security and welfare is based on the European standard, but again in the most flexible way.
Principles of the Bulgarian social security system
- The secured income is capped at 2200 leva (about 1125 euro). This means that one will never pay more contribution than the contribution for this amount. This also means that one will never receive more benefits than the benefits generated based on this amount.
- Social contributions are paid together with the taxes on wages (PAYE). The tax on the wage will be paid over the gross income from which the social contribution is deducted.
- Social contributions consist of an employer and employee part. Employers are obligated to pay social contributions for their employees.
- Contributions are profession depended
Consultations on Bulgarian social security
Social security can be extremely complex in cross-border cases. For taxes there are tax treaties to avoid double taxation, but for social security there aren’t such treaties. Answering questions regarding social security isn’t easy and required professional knowledge.
BulgariaCompanyFormations.com has specialists for Bulgarian labour law and social security who’ll be able to form an answer, even on complex situations.
How to find employees in Bulgaria
When you consider starting a business in Bulgaria it’s a good idea to think in advance about finding employees, even if you intend to start small. This is important because being able to find employees (in the future) very much depends on where your company is located. For exemple: An IT company that intends to hire Bulgarian IT specialists would be best off in Plovdiv or Sofia, because they’ll be able to find the workers they need. However, a factory looking for factory workers would be much better off in regions like Pazardzhik or Russe than Sofia or Plovdiv.
Ways to find Bulgarian employees
There are various channels available to find Bulgarian workers. CompanyFormationsBulgaria.com knows these channels very well and can assist you in finding the right employees. For Company’s looking for large amounts of employees our HRM specialists and business consultants van work out a tailor made plan for your situation.
Employing Bulgarian employees
Our consultants and HRM specialists will be able to assist you with the whole process of employees Bulgarian workers. This can be drawing up a labour contract, general assistance, monitoring or management of employees.
Clients who are looking for possibilities to work with Bulgarian employees on a more flexible ways we recommend our outsourcing services. With outsourcing our company will take care of all the employer’s obligations and duties.
Sending Bulgarian employees abroad
Bulgarian workers can do their work in Bulgaria and outside of Bulgaria. For company’s looking for Bulgarian employees with the purpose to let these people work in their own country, either on a temporary base or for a longer period, our HRM specialists can assist with finding the right people till managing every practical detail. Our legal and tax specialists can take care of alle the legal and tax issues involved.
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