Postings to Bulgaria: Regulations & Reporting Requirements for working

Bulgaria has passed a law to implement the EU Posting of Workers Directive, which requires foreign employers to register posted employees. This applies to both services and intra-company transfers. Registration takes place via a online portal. Further information on sanctions, working conditions and case law is also available there.

Registration process for postings to Austria

1. Go to the online portal for posting workers to Bulgaria.
2. Click on the “Registration” link.
3. Enter your email address and password. Then click “Next.”
4. Complete the registration form by entering all required information. Make sure that all information is correct and complete.
5. Accept the terms of use and click “Sign Up.”
6. Verify your email address by clicking on the link you received via email.
7. After confirming your email address, you can log in to the portal and register your posted employees.
8. Be sure to provide all necessary information about your posted employees, including their name, date of birth, nationality, and length of employment in Bulgaria.
9. Save your data and verify that all information is correct.
10. If everything is in order, you have successfully completed the registration of your seconded employees.
    

Please note that the portal also contains further information on sanctions, working conditions and case law that you must comply with as an employer in Bulgaria.

Regulations for working in Bulgaria

Minimum wage and remuneration in Bulgaria

Minimum gross monthly wage: BGN 1,077 (approx. EUR 550) 

• valid since January 1, 2025
• Annual review: The Bulgarian minimum wage is reviewed annually.
• Since January 1, 2024, the minimum wage has been set at 50% of the average gross wage for the previous 12-month period.

Minimum wage through collective agreements

• There is no generally applicable collective agreement in Bulgaria.
• However, there may be collective agreements at company, sector, industry or municipal level (with effect only for companies that apply or have signed them)
• The minimum wage rates stipulated in the collective agreements may not be lower than the national minimum wage
• The minimum insurable income depends on the occupation and is generally higher than the minimum wage. The maximum insurable income for 2023 is BGN 3,400 (approx. EUR 1,738)

Working hours 

Employees posted to Bulgaria are entitled to:

• work a maximum of 8 hours per day
• work a maximum of 40 hours per week

According to the Bulgarian Labor Code, overtime work is subject to certain restrictions and requires compliance with the legal regulations on maximum working hours and rest periods.

Documentation Requirements for Posting

The Bulgarian entity hosting the posted workers must be provided with certain documents by the foreign employer:

• Employment contract (or equivalent document)
• Applicable legislation in the home country
• Documents proving working hours (e.g. timesheets)
• Pay slips or equivalent documents for payroll accounting

A Bulgarian translation is required for these documents, but it does not need to be a certified/sworn translation. The foreign employer must be able to provide these documents for 1 year after the posting ends.

Social security in Bulgaria

If an employee is posted to Bulgaria from an EU country, EU Regulation 883/2004 on the coordination of social security systems applies:

• A1 certificate is available: Employee continues to be insured by the home country‍
• without A1 certificate: Bulgarian social security regulations apply and the foreign employer must behave like a Bulgarian employer.

Taxation of posted workers

General Rule in Bulgarian Legislation

• Bulgaria normally applies a flat 10% personal income tax (PIT) on employment income, not 20% or 30%.
• There is no “de minimis” period in Bulgarian legislation under which foreign workers automatically avoid Bulgarian tax. Instead, the Double Tax Treaty (DTT) between Bulgaria and the worker’s home state determines whether Bulgaria can tax the income earned during the posting.

 Tax Liability and Filing

• If, under the relevant DTT, the worker’s income becomes taxable in Bulgaria, the worker is responsible for reporting and paying Bulgarian PIT on that income.
• If the foreign employer has a permanent establishment (PE) in Bulgaria, additional tax obligations and withholding responsibilities may arise.

Discrepancies in the Provided Text

• The text references 20% and 30% tax rates plus an “18% surtax.” This does not reflect current Bulgarian personal income tax law (where the standard PIT rate is 10%, and there is no national surtax).
• If workers are posted from other jurisdictions that do impose progressive rates (20%, 30%, etc.) and local surtaxes, those rates may apply in the home country—not in Bulgaria.

Penalties for non-compliance with posting regulations

The Bulgarian labor authorities may impose fines for non-compliance with the regulations.

Foreign employer

• first violation: BGN 1,500 to BGN 15,000 (approx. € 767 to € 7,669) per violation
• Repeated violations: BGN 15,000-20,000 (approx. € 7,669-10,226)

Responsible person

• First offense: BGN 1,500 to 15,000 (approx. €767 to €7,669) per offense
• Repeated violations: BGN 15,000-20,000 (approx. € 7,669-10,226)

Establishment that employs seconded employees

• First violation: BGN 5,000 (approx. € 2500) per posted employee
• Repeated violations: BGN 5,000-10,000 (approx. € 2,500-5,000)

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The information provided on this website does not constitute legal advice and is not intended to address any legal issues or problems that may arise in individual cases. The information on this website is of a general nature and is provided for informational purposes only. If you need legal advice for your individual situation, you should seek the advice of a qualified attorney.