According to Pebl's employment agreement template, when is the salary due in Bulgaria?

The employment agreement template for Bulgaria stipulates that remuneration is paid once per month via bank transfer on the date specified in the Internal Salary Rules of the Company.

How is salary calculated and what components does it consist of in Bulgaria?

In Bulgaria, the salary structure as per the employment agreement template includes the following components:

• Basic gross monthly salary.
• Additional gross monthly remuneration that is permanent in nature. This is calculated at a rate of 0.6% over the basic monthly salary for each year of acquired length of service and professional experience. This increase applies automatically upon completion of a full year of service or an increase in the basic monthly salary, without requiring a separate annex.

Is there a legal obligation to pay salaries in the same month in Bulgaria?

There is no legal obligation in Bulgaria to pay salaries within the same month. Salaries can be paid either in the same month or by the 10th of the following month.

How many salary payments are made per year in Bulgaria?

In Bulgaria, there are 12 salary payments made per year.

Is salary payment monthly and is payment standard at the end of the month in Bulgaria?

Yes, in Bulgaria, salary payments are made monthly and are typically processed at the end of the month.

Should the employment agreement in Bulgaria specify salary in monthly or annual amounts?

Our employment agreement template in Bulgaria specifies salary amounts in monthly gross salaries.

What tax and social security obligations do employees have in Bulgaria?

In Bulgaria, the tax and social security obligations for employers and employees are structured as follows:

• Individual Income Tax: Income is taxed at a flat rate of 10%.

- Residents are taxed on their worldwide income.

- Non-residents are taxed only on Bulgaria-sourced income.

• Employee Contributions:

- Pension

- Sickness

- Unemployment

- Additional obligatory pension fund (for employees born after 1960)

- Health insurance

What are the details of the statutory bonuses and 13th/14th-month salary in Bulgaria, including the local name and payment schedule?

In Bulgaria, the provision of year-end bonuses is at the discretion of the employer, as there are no specific laws governing such bonuses. These bonuses can be included in either an individual's or a collective employment agreement.

Additionally, supported employees who have completed 1 year of service are eligible for seniority compensation. This compensation depends on the length of service and professional experience and is calculated as a percentage of the employee’s basic monthly salary. The seniority bonus is set at 0.6% of the basic monthly salary for each year of accumulated service length and professional experience. This seniority compensation applies whether the supported employee's experience is with the same or different employers, provided the nature of their work is similar.

What is the minimum wage information in Bulgaria?

Effective January 1, 2025, the minimum monthly wage in Bulgaria is BGN 1,077, and the minimum hourly wage is BGN 6.49.