+359 2 963 43 23
Follow us

 

If you plan to invest, open business or enlarge your existing operation and respectively hire people in Bulgaria

here we have tried to extract useful tips and links that might guide you for your hiring and employment activities in the country

image6

Hiring in Bulgaria important information

  • Population – 7,35 million (Census 2011)
  • Capital –Sofia, 1,2 million
  • GDP: €37,4 billion (2010)
  • GDP per capita: €4 500 – 43% of the average for EU (2010)
  • Number of labor workforce – 2, 15 million (March 2011)
  • Employees by leading economic activities (March 2011)
    • Manufacturing – 489 229
    • Construction – 129 499
    • Agriculture,forestry and fishing – 56 145
    • Wholesale and retail trade;repair of motor vehicles and motorcycles – 391 935
    • Administrative and support service activities – 105 593
    • Public administration and defense -115 534
    • Education – 168 469
    • Human health and social work activities – 128 509
  • Unemployment rate: 12%
    • Urban area: 10.4%
    • Rural area: 17.7%

  • The average labor cost for the first quarter of 2011 is 63 EUR which is 6% higher than the total average from the previous year. This number includes employers’ imputed social contributions and actual social contributions, costs for other social expenses and benefits, taxes paid by the employer.
  • The average monthly wage of the employees under labor contract for the first quarter of 2011 is 344 EUR.
  • The minimum monthly wage is 123 EUR; the government has agreed to raise the minimum wage to 138 EUR as of 01 September 2011 (108 EUR after taxes and insurance costs are deducted). The minimum wage is mandatory in Bulgaria.
  • Average salaries in the most advanced sectors (March 2011)
    • Electricity,gas,steam and air conditioning supply – €736
    • Information and communication – €760
    • Financial and insurance activities – €668
    • Start salary in IT – €500
  • The above data is official and rather statistical data. Actual salaries may deviate a lot from the official statistics as in management and IT net remunerations reach averages in EU.
  • Salaries in Sofia are normally 30% higher than in the country

  • Corporate Profit Tax – 10% flat
  • Basis Capped – €1020 per month
  • Dividend Tax – 5%
  • Costs paid by the employer on top of the agreed gross salary – 17,9%
  • Distr. to EU/EAA Companies – 0%
  • VAT – 20%
  • Withholding Tax – 10%
  • VAT on Tourism – 7%
  • Personal Income Tax – 10% flat
  • VAT on EU Supplies – 0%
  • Max Social & Health Contributions- 30.7%
  • VAT on Export – 0%

  • The price of a Big Mac – €2.00
  • The price of a Beer – €1.00-2.00 in an average restaurant; €0.40 in a supermarket
  • Budget for dinner for two (salad, main course, beer/ soft drinks, dessert) in anaverage restaurant in downtown Sofia – €20 – 30
  • Taxi in Sofiais less than €0.30 p/km; from downtown Sofia to the airport – approx. €5.00
  • Gas price– €1.29p/l
  • Price of real estate property – renting or buying in Sofia average for 2010 or latest
    • Buy: Sofia, downtown – €1136/m2
    • Buy: Sofia, average– €754/ m2
    • Rent: Sofia, downtown – €5/ m2
    • Rent: Sofia, average – €4/ m2

  • The recruitment agencies in Bulgaria are regulated by the National Employment Agency as the latter issues license for this activity
  • There are 334 licensed recruitment agents in Bulgaria
  • In Bulgaria it is illegal to charge candidates for finding them a job or recommending them for employment
  • Due to the size of the market, there are a few recruitment companies that are specialized in a particular industry or function thus it is normal to come upon generalists. All big recruitment agencies are generalists with bigger experience in the most developed sectors in Bulgaria.
  • Prices range from 1 to 2 gross salaries for lower level roles and 2 to 4 gross salaries for middle and top management as most of the recruiters work on a fixed fee which does not depend on the planned salary.
  • Contingent recruitment is popular but with very low success rates 15-20%.
  • Retained recruitment pricing models are the marks of serious recruitment companies in Bulgaria that report 75% success of deliver and higher.

 


Sources:
National Social Security Institute, National Statistical Institute, Bulgarian Ministry of Finance, Ministry of Labor and Social Policy, Bulgarian Industrial Association, National Employment Agency, Wikipedia


 

Horizons is a recognized brand in the HR business

Our professional approach will give you an expertise in talent management

Send us a request for HR Services

A little about us

Our team consists of experienced business oriented consultants with strong professional background in identifying and attracting professional talent, career management and labour market research,training, development organizational change and project management. Each of us is experienced in the area of human capital, has managed teams, processes or business unit.

See ful list of our HR Services