Bulgaria: Pay and benefits

Original and updating authors: Kalina Tchakarova and Youliana Naoumova, DGKV

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Summary

• The payment of remuneration by the employer for the work performed by the employee is an essential element of an employment contract - the amount of the remuneration is set on the basis of a combination of the provisions of the employment contract and any applicable collective agreement, and statutory rules in a number of areas. (See General)
• Remuneration must be paid at least once per month in cash or, at the employee's written request, by transfer into a bank account. (See Payment of wages)
• With limited exceptions (such as income tax, social security contributions, advances and certain overpayments), any deductions from remuneration require the employee's consent. (See Deductions)
• Employers must ensure that employees receive equal remuneration for equal work or work of equal value. (See Equal pay)
• A statutory national minimum wage applies to all employees. (See Minimum wage)
• A state old-age pension scheme forms part of the statutory social security system, as does a mandatory (in the case of individuals born after 1959) supplementary pension scheme, while employers may also provide voluntary pension arrangements. (See Pensions)
• Employers must withhold employees' income tax at source, and employers and employees must pay statutory social security and health insurance contributions. (See Income tax and social security)
• An employee who is absent from work owing to illness or injury is entitled to receive 70% of normal pay from the employer for the first two days of absence, and a social security benefit of 80% of normal pay (up to a ceiling) for any further period of absence. (See Sick pay)
• Employers may provide additional items of remuneration, such as fringe benefits. (See Benefits in kind)