How to hire your first employee in Bulgaria in 2026 — step by step

The steps to hiring an employee

1. Draw up an employment contract — it must be in writing, in three counterparts
2. Register the contract with the Revenue Agency — before the employee starts work (at least 3 days beforehand)
3. Open a personnel file — employment record book, identity document, educational certificates
4. Notify the Labour Inspectorate — for certain activities (construction, security and others)
5. Provide safe working conditions — induction and health and safety training

Registering the employment contract with the Revenue Agency

Registration is mandatory and is done online through the Revenue Agency portal. You must submit:

• The notification under Art. 62(4) of the Labour Code (Revenue Agency form)
• You must hold a qualified electronic signature for the company

What must the employment contract contain?

Under the Labour Code, the mandatory clauses are:

• The parties (employer and employee)
• The job title and the nature of the work
• The place of work
• Working hours
• The basic salary
• The start date
• The probationary period (if any — maximum 6 months)

What does an employee on the minimum wage cost the employer?

On top of this there may be costs for workwear, transport, meal vouchers and occupational health.

Sick leave, holidays and compensation

Taking on an employee also brings obligations for:

• Sick leave — the employer pays the first 2 days (70% of gross pay); from day 3 the Social Security Institute pays
• Paid annual leave — a minimum of 20 working days for a full year of service
• Maternity leave — paid by the Social Security Institute, but you must cover the role
• Compensation on dismissal — depends on the grounds and length of service

Your monthly obligations after the hire

• Pay the salary — by the end of the month (or as the contract provides)
• File Declarations 1 and 6 with the Revenue Agency — by the 25th
• Pay the social security contributions — by the 25th
• Withhold and pay income tax — by the 25th of the following month