Employer of Record Bulgaria
Skuad’s EoR solution in Bulgaria gives companies a competitive edge. Bulgaria can play a strategic role in the expansion plans of your business into Europe. One of the fastest ways to access the Bulgarian market is to hire Skuad as your Employer of Record in Bulgaria. Skuad’s unified employment platform enables organizations to hire and onboard, manage payroll efficiently, and ensure compliance with the Bulgarian taxes and employment laws.
Organizations can begin operations in Bulgaria without the need of setting up a subsidiary as Skuad becomes the legal employer on behalf of the organization. Contact Skuad to know more.
Bulgaria At A Glance
The Republic of Bulgaria, the 16th largest country of the European Union, is located towards the south-eastern part of the continent. On the HDI, Bulgaria is ranked 56th which reflects the quality of life that is better than the global average.
Population: 6,951,482 (as on 1.01.2020)
Currency: Bulgarian Lev or BGN/ Euro(EUR)
Languages spoke: Bulgarian
GDP: $164 billion (PPP, 2020)
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Employment In Bulgaria
The workforce in Bulgaria gets divided into three categories as per the Bulgarian labor laws and the Social Security Law. These employees are known as first, second, and third category workers. The third category is the most popular work category with favorable working conditions. The Council of Ministers of Bulgaria is primarily responsible for the segregation of work categories.
Here are some of the rights and entitlements of workers according to Bulgaria employment laws in brief:
Leaves and Holidays
Social security in Bulgaria offers financial protection from accidents at the workplace, fatal diseases and illnesses, life risks, old age, unemployment, maternity, and employee death.
1. Each employee needs to be mandatorily insured.
2. The social security contribution calculations include:
- Health insurance = 8% of the salary (gross)
- Pension insurance = 5% of the salary (gross)
- Basic social security = 17.3% of the salary (gross)
- The occupational accident insurance is borne by the employer that costs between 0.4% to 1.1%, depending on the job position.
The details mentioned here are just a glimpse into details and clauses of the Bulgarian Labor Law. The first thing you need to do as a company looking to expand in Bulgaria is to get accustomed to and well-versed with the local labor and employment regulations. It is a challenging task and could take time – not to forget the expertise that you would require to hire to do so.
With an Employer of Record in Bulgaria, such as Skuad, these processes become simple and smoother. We help you expand in Bulgaria, effectively impacting your business costs and productivity.
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Contractors vs. Full-time Employees
The employment contracts in Bulgaria define only the employee-employer relationship. The Bulgarian Labour Law defines workers as people involved in physical labor while employees are involved in mental tasks. The said employer employs independent contractors not on an employment basis but as a civil relationship. Contractors get employed for specific jobs that involve the expertise of the said field. Therefore, a contractor is not part of the employer's labor force and is not covered by clauses mentioned in the employment agreement in Bulgaria.
The relationship basis between the contractor and the employer is governed by the commercial and civil laws and not employment contract laws in Bulgaria. As per the Bulgarian laws, any attempt to hide an employment relationship under a contractual agreement will be classified as an employment relationship and would attract legal penalties for the concerned parties.
Hiring In Bulgaria
One way to do this is to get help from hiring companies in Bulgaria to sort your HR domain. The other way is to hire candidates from job portals like www.Jobs.bg, www.JobTiger.bg, www.Karieri.bg, www.Zaplata.com, and www.Buljobs.bg.
Instead of such a long-drawn process for hiring a workforce, you can enter Bulgaria with a faster turnaround if you consider hiring an EOR. Skuad is one of the leading Employers of Record in Bulgaria, offering you an automated and smart platform to hire employees in Bulgaria, ensuring payroll and taxation compliance, optimized employee health benefits of Bulgaria, social security contributions, and more. In short, Skuad is in charge of the entire hire-to-fire process leaving you to focus on your expansion plans.
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Probation & Termination
Here are some of the legal provisions of probation and termination in Bulgaria:
To ensure your expansion endeavors adhere to the laws regarding probation and termination in Bulgaria, talk to Skuad experts and book a demo.
EOR or Employer of Record is an incorporated business in a foreign country wherein the registered entity offers professional HR services. Employer of Record EOR is responsible for providing end-to-end assistance and support in the HR functionality.
The labor and employment terms in any land are unique and distinct from other countries. Hiring the labor force is the first necessity for any foreign business entity. In such a scenario, as a business, you need experts in the local employment laws to carry on your business expansion plans hassle-free.Employer of Record services includes compliance with the payroll and taxation laws while ensuring that all terms and clauses of the local labor laws get fulfilled, through and through.
Skuad is one of the top employers of record companies in Bulgaria, offering top-of-the-class automated EOR solutions. Speak to our Bulgarian specialists, who will take you through hiring, recruiting, and onboarding employees, handling the complete payroll, HR admin, and taxation for the business in Bulgaria in strict adherence with the local laws.
Contact our seasoned experts for more information.
Types Of Visas In Bulgaria
Employers who wish to hire a workforce for their unit in Bulgaria need to apply for a work permit in Bulgaria. The requirements for a work permit are:
Also, work permits are a must for foreign employees. It is not possible to get a Bulgaria work permit without a job offer.
As an EOR service for Bulgaria, Skuad takes care of all the requirements and responsibilities related to employment, including applying for and obtaining visas and work permits.
Get in touch with Skuad experts to learn more.
Payroll & Taxes in Bulgaria
Taxation in Bulgaria
Besides, there are other taxation sub-heads and rules that differ for foreign employees. When you hire Skuad as your EOR, there is no reason to worry because we handle the entire taxation gamut.
Bonuses are paid at the discretion of the employer in Bulgaria. They're prevalent, and they're frequently paid around December.
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Incorporating a holding company in Bulgaria can be done in three ways: a Private Limited EOOD company, an OOD Private Limited company, and a Public Limited EAD company. If you are keen to do business in Bulgaria, you can consider setting up a Bulgarian holding company because of the formulation of dividend payments. The holding company needs to invest a minimum of 25% of capital stock in a subsidiary. Besides, at least 50% of the management should be with the holding company founding members.
The increasing business opportunities in Bulgaria make the country an attractive investment decision. But incorporation can take time and is a nitty-gritty process. The best way is to employ an EOR to allow you to dive into the business right away.
Skuad’s EOR Bulgaria services can fast-track your expansion process, allowing you to start your business operations in Bulgaria immediately. Right from recruiting the right employees to managing your payroll, Skuad’s services will handle all the compliances for you so that you can commence business operations on time.
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Professional Employer Organization (PEO)
A Professional Employer Organization in Bulgaria or PEO is also a facilitator offering HR support. However, when you employ a PEO service provider, you still need to incorporate your subsidiary in Bulgaria. A PEO works as a co-employer but not as a separate legal entity. In contrast, the EOR is a separate legal entity with specialization in the HR domain. It handles the entire workforce for your organization for a fee. The EOR pays the workers and laborers, and the taxation and other statutory compliances are taken care of by the EOR.
Skuad offers both types of services to foreign businesses that wish to expand into Bulgaria. Call us to learn more about the difference between the two services.
Bulgaria is an ideal country for expanding your business. The country is famously known as the European Outsourcing Destination ever since 2015. The government has also devised newer strategies for promoting foreign investments like the Innovation Strategy for Smart Specialization. The corporate taxes in Bulgaria are also considerably lower – it is 10%, while in other countries in the region, the taxes hover around 25%. To add to this, the workforce in Bulgaria is qualified and skilled. The production costs are comparatively lower, office spaces available at best rates, and starting a limited liability company here is cost-effective.
There are various ways of working in Bulgaria but hiring Skuad as your EOR helps as the entire HR is our responsibility and forte. We ensure that you get the best people to work for you.
Call our experts to know more.