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Outsourcing to Bulgaria

Many businesses consider Bulgaria as one of the best destinations for outsourcing in Central and Eastern Europe, due to its low labor costs and the quality of its labor force. The Bulgarian workforce is highly-educated, with local universities producing 60,000 fresh graduates every year. Additionally, the vast majority of young Bulgarians learn at least one foreign language in school, usually English, which greatly facilitates communication with the Bulgarian talent pool.

The outsourcing services offered by FMC Group provide clients with direct access to the talent pool of Bulgaria without having to go through the process of establishing a local legal entity in the country or renting out a locale. FMC Group allows clients to be fully compliant with local laws and regulations while benefiting from all the advantages of the Bulgarian labor force.

Content:

  • Advantages of Outsourcing to Bulgaria
  • FMC Group’s Outsourcing Approach
  • Advantages of Outsourcing with FMC Group
  • Labor Laws in Bulgaria
    • Working Hours
    • Paid Vacation and Public Holidays
    • Other Paid Leaves
    • Minimum Wage
    • Social Contributions and Taxes
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Stephan Dorn FMC Group

Advantages of Outsourcing to Bulgaria

  • The Bulgarian workforce is well-educated, highly-skilled, and can speak many languages. Around 98% of high school students in Bulgaria study at least one foreign language, usually English, and 73% study a second foreign language, mainly German, French, Spanish, or Russian.
  • Bulgaria has 51 universities from which around 60,000 students graduate every year. Some of the most popular fields of study in the country are business and administration, engineering, and education.
  • The Bulgarian population is relatively young. Around 62.2% of the total population, approximately 4.6 million individuals, is of working age.
  • Bulgaria has one of the most competitive costs of labor in the region of Central and Eastern Europe. The average gross monthly salary in the capital, Sofia, is around BGN 1,500 (EUR 750). Moreover, the corporate income tax rate is set at 10% – one of the lowest in the EU, and the personal income tax is also set at a flat rate of 10%.

FMC Group’s Outsourcing Approach

Selection and interviews

  • Preselection of candidates that match the client’s requirements;
  • Preparation of reports on the best candidates;
  • Conduction of job interviews;
  • Conduction of personality tests or other types of tests if requested.

Recruitment

  • Providing the client with video recordings of the interviews to make the final decision;
  • Hiring successful candidates at the local FMC Group company in Bulgaria.

Operations

  • Administrative management of the employees, including contracts, payments, vacations, etc.;
  • Providing all the necessary tools and infrastructure needed by employees for their work;
  • Letting clients handle the executive and functional management of the employees.
Approach for Nearshoring

Advantages of Outsourcing with FMC Group

  • Adapted search for candidates according to the client’s requirements;
  • Publication of job advertisements on various platforms and search for potential candidates on FMC Group’s growing talent database;
  • Entire recruitment process conducted by FMC Group, from preselection to contract signing;
  • No need for setting up a local company in Bulgaria;
  • Reduced costs and unmatched flexibility.

Labor Laws in Bulgaria

Working Hours

  • Employees in Bulgaria can work up to 40 hours per week and eight hours per day.
  • Overtime work is paid at a rate of 150% of the standard pay on regular days, 175% on weekends, and 200% on public holidays.
  • Overtime work cannot exceed three hours daily, six hours weekly, 30 hours monthly, and 150 hours yearly.

Paid Vacation and Public Holidays

  • Bulgarian labor law allows employees to take 20 days of paid leave per year after they complete four months of work for their employer.
  • Bulgaria celebrates 10 public holidays:
    • January 1st: New Year’s Day
    • March 3rd: National Holiday
    • Between March and April: Good Friday and Easter Monday (moveable)
    • May 1st: Labor Day
    • May 6th: George’s Day
    • May 24th: Day of Enlightenment
    • September 6th: Unification Day
    • September 22nd: Independence Day
    • December 24th – 26th: Christmas Holiday

Other Paid Leaves

  • Maternity Leave: Pregnant employees can take up to 410 days of paid maternity leave. The minimum duration of the leave is 135 days and it can be taken 45 days before the expected delivery date. The new mother receives 90% of her salary during maternity leave, paid by social security.
  • Paternity Leave: New fathers with more than one year of service have the right to take 15 days of paid leave after their baby is born. They receive 90% of their salary during this period, paid by social security.
  • Parental Leave: After six months from birth, both parents can divide the remaining maternity leave days between them, if the mother agrees.
  • Sick Leave: Employees can take a sick leave for up to 18 months. Employers have to cover 70% of the employee’s salary during the first three days of sick leave. Afterward, social security covers 80% of the salary, or 90% if the leave is due to a work accident.
  • Bereavement Leave: Employees are entitled to two days of paid leave if one of their immediate family members passes away.
  • Marriage Leave: Employees have the right to take two days of paid leave in the event of their marriage.

Minimum Wage

  • The minimum wage in Bulgaria is the same across the entire country and it is set at BGN 720 (EUR 369).
  • Salaries in Bulgaria are usually paid on a monthly basis, on the last working day of each month.

Social Contributions and Taxes

  • Employers in Bulgaria have to pay a contribution of 18.92% to 19.62% of their employees’ gross salary, which includes 13.72% that goes to social security, 4.80% that goes to health insurance, and 0.40% to 1.10% that goes to the Work Accident and Occupational Illness Fund.
  • Employees pay 13.78% of their gross salary as contributions, including 10.58% for social security and 3.20% for health insurance.
  • Employees in Bulgaria have to pay income tax at a flat rate of 10.00%.