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Undoubtedly, payroll is a critical process for any organization. The pay cycle in Bulgaria refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

The payroll cycle in Bulgaria is generally monthly, with payment being made on the last working day.

There are no provisions in the law regarding 13th salaries.

From January 1, 2024, the monthly minimum wage is BGN 933, and the hourly wage is BGN 5.58.

Work above the standard workweek of 40 hours is paid as overtime and regulated by employment contracts or collective agreements. In general, overtime maximum limits are set at 3 hours per day (across two consecutive days), 6 hours a week, 30 hours a month, and 150 hours per year.

Overtime hours are paid at 150% of the standard salary rate for working day hours, 175% for weekend hours overtime, and 200% for working on public holidays.

In Bulgaria, all payroll-related documents must be stored for 50 years. Tax records generally must be kept for a minimum of 10 years, and all other documents should be stored for three years.

Before starting to hire or advertise recruitment, employers should organize and plan their approach, carefully considering the content and the design of the job advert and the most appropriate time to publish it. They should also identify the most suitable media for advertising the job to reach an appropriate audience.

• Preparing a job description and person specification can provide a valuable basis for designing a job advertisement to advertise recruitment.
• All forms of job advert are covered by the Equality Act 2010.
• Employers must not publish adverts that indicate or reasonably indicate an intention to discriminate.
• Adverts should contain enough information about the job and the organization to help applicants decide if they are suited.
• Adverts must not target applicants with a particular protected characteristic unless this is an occupational requirement or lawful positive action.
• Positive action may be used to encourage applications from under-represented groups.
• Relying upon 'word of mouth' recruitment has the potential to discriminate indirectly.
• Employers may be liable for the discriminatory actions of third-party advertising on their behalf.
• Employers must not pressure third parties to discriminate in the recruitment process.
• Employers must provide temporary agency workers/fixed-term employees with information on relevant job vacancies.

Whistleblower Protection Act:

Effective from May 4, 2023, the WPA aims to safeguard those who report or make public information about violations of EU or Bulgarian legislation. However, the people impacted by the report or disclosure are entitled to compensation for pecuniary and non-pecuniary damages if the whistleblower knowingly reports or makes public false information. In cases of violations of the aforementioned prohibition, the whistleblower is also entitled to compensation for pecuniary and non-pecuniary damages suffered as a result of the violation.

The following documents are required:

• Name
• Address
• Date of place
• Number of a personal card or other identification document and civil ID number
• Educational and Qualification Certificate
• Previous Employment history/ certificate
• Copy of passport
• Copy of driving license

The parties may agree to a probationary period of up to six months when the nature of the work requires confirmation of the employee's ability to perform it or where the employee wishes to verify that the work is suitable. In practice, the parties to any employment contract may agree to a probationary period.

Bulgaria recognizes 15 Public holidays.

Employers are required to give employees holidays as non-working days with full pay. Employees working on holidays are entitled to double their normal remuneration.

The Labor Code specifies paid holidays. The holidays set by the Labor Code are as follows:

• Jan 1: New Year's Day
• Mar 3: National Day
• Apr 14: Orthodox Good Friday
• Apr 16: Orthodox Easter
• Apr 17: Orthodox Easter Monday
• May 1: Labor Day
• May 8: Durdevdan
• May 24: Day of Slavonic Alphabet, Bulgarian Enlightenment and Culture
• Sept 6: Unification Day
• Sept 22: Independence Day
• Dec 24: Christmas Eve
• Dec 25 and Dec 26: Christmas

The employer pays 70% of the basic income for the first three days of illness.

From the fourth day of illness until full recovery, Social Security pays 80% of the basic income.

Employers must give pregnant employees paid maternity leave of at least 410 days, 45 of which are used before the birth. Employees receive compensation during this time from the NHIF in an amount equal to 90% of the average gross salary or the average daily income on which social security contributions have been calculated.

New fathers are entitled to 15 days of paid leave at 90% of their basic income.

Two days of paid paternity leave.

Employees shall be entitled to unpaid leave regardless of whether they have used their paid annual leave or not and their time with the company. The employer shall allow a one-time use of unpaid leave of up to 1 year to an employee who is in a legal relationship with an institution of the European Union, with the United Nations, the Organization for Security and Cooperation in Europe, with the North Atlantic Treaty Organization or with other international governmental organizations. Unpaid leave of up to 30 working days in a calendar year shall be recognized as part of the length of service.

An employee who is entitled to paid study leave shall also be entitled to unpaid leave in the following amounts:

For preparation and taking an exam – up to 20 working days for a school year; for the preparation and taking of an entrance, matriculation, or state examination, including for the preparation and defense of a diploma thesis or diploma project in secondary schools – up to 30 working days;

for preparation and taking a state exam, including for preparation and defense of a diploma thesis or a diploma project in higher educational establishments – up to 4 months;

for preparation and defense of a dissertation by part-time doctoral students or by doctoral students of independent preparation – up to 4 months. When the employer's consent has not been given, the employee who studies in a secondary or higher school without leaving the proceedings has the right to half the unpaid leave. Labor Code, Sec 171.

An employee can be provided with written notice in case of termination

The notice period is equal to the employee's pay period. The notice period is one month if the employee is paid on a monthly basis. The notice period is one week if the employee is paid weekly.

If an employee is fired due to misconduct or subpar performance, no notice is necessary.

An employee is eligible for severance pay after 60 consecutive months of employment with the company. Severance pay is calculated as per the day of pay for each month until 60 months of employment, with 2 adds added for further months.

Foreign employees are generally subject to the same workplace and tax legislation as Bulgarian nationals. They also have the same legal rights. With a valid ID or passport, EU nationals, Schengen participants, EEA participants, and Swiss nationals may freely stay in Bulgaria for up to three months. According to the Law on Employment Promotion, foreign nationals must get a work permit from the Employment Agency through their planned employer. This permission is valid for one year and may be extended for two additional years if necessary.

Individuals from the EU, EEA, or Switzerland may be given temporary residence certificates for up to five years. Once this period has passed and they have resided in Bulgaria legally for more than five years, nationals of the EU, EEA, and Switzerland may apply for a permanent residency certificate.

Bulgaria offers three different types of visas:

For airport passage (Visa A)

Short-term, transitory, or intended stay (Visa C)

For an extended stay, non-EU citizens who entered Bulgaria with a Type D visa may be given residence permits for up to a year.

The following documents are required:

• Filled Visa application form
• Passport
• Photocopies of prior visas
• Recent passport-size photo in line with Bulgaria visa picture requirements
• Travel itinerary
• Proof of travel insurance of at least €30,000 for the duration of your stay
• Proof of accommodation.
• Proof regarding the purpose of travel.
• Proof of sufficient financial means to support yourself during your stay
• Certificate of police clearance (if necessary)

Background checks can be made and are generally conducted by requiring the applicant to produce several documents, which should be presented to the employer before entering an employment contract. These documents consist of two main types:

Legally required: Bulgarian Ordinance No. 4 on the Documents Necessary for Execution of an Employment Agreement provides a list of legally required background documents. Some of these apply to all employees, and some depend on the type of assigned work. Generally, required documents include the following:

A criminal record certificate is also required for some specific jobs, but only if that is explicitly regulated in the legislation.

1. Medical certificate evidencing the applicant's general health status;
2. The document evidencing a specific professional qualification or capacity;
3. Limited personal data is needed to identify the employee only.

Required by the employer: The employer can also require specific additional documents, but only if these documents relate to the performance of the job (for example, a requirement to provide a criminal record certificate for the role of an administrative assistant will not be justifiable) and are envisaged by law. Further, the employer must comply with all personal data protection and anti-discrimination requirements when obtaining personal information from a potential employee.

For example, an employer will violate the Law on Protection of Discrimination and can be subject to sanctions if it requests information concerning the employee's racial or ethnic origin, political, religious, or philosophical convictions, sex life, and so on, without a legitimate aim. A third party cannot process the personal data of an employee or job applicant without their knowledge and prior consent unless the data is publicly available.