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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

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IMPORTANT INFORMATION FOR HIRING IN BULGARIA

  • Population – 7 050 034 (Census 2017)
  • Capital –Sofia, 1 325 42
  • GDP: €47.7 billion (2017)
  • GDP per capita: €6 752 (2017)
  • Number of labor workforce – 2,31 million (March 2017)
  • Employees by leading economic activities (March 2017)
    • Manufacturing – 513 662
    • Construction – 125 076
    • Agriculture, forestry and fishing – 75 331
    • Wholesale and retail trade;repair of motor vehicles and motorcycles – 394 958
    • Administrative and support service activities – 117 728
    • Public administration and defense -113 745
    • Education – 167 179
    • Human health and social work activities – 144 309
  • Unemployment rate: 4.6%
    • Urban area: 4.3%
    • Rural area: 9.6%

  • The average labor cost for the first quarter of 2018 is 538.5 EUR. 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 538.5 EUR.
  • The minimum monthly wage is 255 EUR; the government has agreed to raise the minimum wage to 255 EUR as of 01 January 2018. The minimum wage is mandatory in Bulgaria.
  • Average salaries in the most advanced sectors (March 2018)
    • Electricity,gas,steam and air conditioning supply – €847
    • Financial and insurance activities – €900
    • Start salary in IT – €1376
  • 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 – €1300 per month
  • Dividend Tax – 5%
  • Costs paid by the employer on top of the agreed gross salary – 16,48%
  • Distr. to EU/EAA Companies – 0%
  • VAT – 20%
  • Withholding Tax – 10%
  • VAT on Tourism – 9%
  • Personal Income Tax – 10% flat
  • VAT on EU Supplies – 0%
  • Max Social & Health Contributions- 24.30%
  • VAT on Export – 0%

  • The price of a Big Mac – €2.10
  • The price of a Beer – €1.00-2.00 in an average restaurant; €0.60 in a supermarket
  • Taxi in Sofia is less than €0.40 p/km
  • Gas price– €1.149 p/l
  • Price of real estate property – renting or buying in Sofia average for 2017 or latest
    • Buy: Sofia, downtown – €1.170/m2
    • Buy: Sofia, average– €934/ m2
    • Rent: Sofia, downtown – €5.62/ m2
    • Rent: Sofia, average – €5.28/ m2

  • The recruitment agencies in Bulgaria are regulated by the National Employment Agency as the latter issues license for this activity
  • There are 305 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


 

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