Employee Benefits
Spotlight on Bulgaria – A guide to implementing employee benefits technology
04.03.25
Famed for the Balkan Mountains and its Black Sea coastline, Bulgaria is rapidly becoming one of our most requested locations for implementing employee benefits technology, and this trend is likely to continue.
A highly skilled, multilingual workforce makes Bulgaria a hub for tech and online services. And in the war for talent, it’s the companies with comprehensive renumeration, benefits and intuitive benefits technology that come out on top. The workforce is overwhelmingly young, and this younger generation demands flexible, relevant benefits, preferring options such as a leisure allowance over core private medical insurance and pension. They are also tech savvy, expecting a benefits platform that enables them to select their benefits seamlessly and quickly. Employers looking to catch their attention and retain talent need to bolster their offering, whilst heeding the cost-of-living limitations and other restrictions.
Mandatory Benefits
Bulgaria’s social security system is primarily funded through employer and employee contributions, covering pensions, healthcare, and unemployment insurance:
Social security contributions (National Social Security Institute – NSSI)
Employers contribute 18.92% to 19.62% of an employee’s salary, while employees contribute 13.78% of their salary. These contributions cover pensions, healthcare, maternity leave, disability benefits, and unemployment insurance.
State Pension System
Under the State Pension System, employees contribute to the state pension fund, which provides retirement income. As of 2024, the retirement age is 64 years and seven months for men and 62 years and two months for women, with gradual increases planned.
Healthcare benefits (National Health Insurance Fund – NHIF)
Employers and employees both contribute 8% of gross salary toward public healthcare. This provides employees with access to free or subsidized healthcare through the NHIF.
Unemployment insurance
Employees who lose their jobs may receive up to 60% of their average salary for four to 12 months, depending on their work history.
Parental leave and benefits
Maternity leave in Bulgaria is 410 days (58 weeks) of paid leave, with 90% of the employees’ salary covered by social security, while paternity leave is 15 days of paid leave. Parental leave is where employees receive additional unpaid leave until the child reaches two years old, with social security coverage.
Sick leave and pay
Employers must pay 70% of the employees’ salary for the first three days of sick leave. After three days, social security covers 80% of their salary for the duration of the illness.
Annual leave
Employees are entitled to a minimum of 20 days paid vacation per year.
Core benefits
To remain competitive, many Bulgarian companies provide additional benefits beyond statutory requirements:
Supplementary pension plans
Some employers offer voluntary pension contributions beyond the state system, with contributions typically ranging from 3% to 5% of an employees’ salary.
Private health insurance
Many employers provide private health insurance for faster access to specialists and private clinics. This includes dental, vision, and rehabilitation services.
Life and disability insurance
Some companies offer Group Life Insurance, covering one to three times the employee’s salary. Employers may also provide disability insurance for income protection.
Commuter and transportation benefits
These are popular benefits employers offer in the form of public transport subsidies or fuel allowances for employees commuting to work. Some companies also offer company cars or mileage reimbursements.
Popular benefits
Bulgarian employers are increasingly focusing on work-life balance and employee wellbeing by offering additional benefits:
Flexible work arrangements
Remote work and hybrid models are becoming more common in the Bulgarian workplace, with many companies offering flexible working hours to their employees.
Education and professional development
This includes tuition reimbursement for university courses, certifications, and professional training, as well as access to language courses and leadership development programs.
Meal and daily allowances
Employers offer meal vouchers that are partially tax-exempt or subsidized office meals up to a tax-free limit of BGN 200 a month. This is based on the number of days worked by the employee and can be redeemed at cafés, restaurants, and supermarkets.
Wellness and mental health support
These benefits consist of gym memberships, wellness stipends, and mental health programs, as well as Employee Assistance Programs (EAPs) offering confidential counselling services to employees.
Childcare and family support
Many Bulgarian employers offer on-site childcare or childcare subsidies, as well as extended parental leave benefits beyond the statutory requirements.
Key considerations for implementing employee benefits in Bulgaria
- Language matters – especially when it comes to compliance. While many of our global customers prefer English as the platform language, there is a strong preference for local language support in Bulgaria. Most providers require reports in Bulgarian, which uses the Cyrillic alphabet, making local language capabilities a key compliance and usability consideration.
- Technology can ease admin and enhance the employee experience. Digital benefits administration can significantly reduce the burden on local HR teams. Allowing employees to manage dependants for medical cover online – and view the impact on their salary in real time – improves transparency and puts more control in their hands.
- Flexibility is becoming a must-have, especially for younger workers. Bulgaria’s young, tech-savvy workforce is influencing the direction of benefits strategies. Employers – particularly in the tech and professional services sectors – are responding with more flexible and personalized options. Voluntary benefits such as holiday purchase are on the rise, offering value without employer funding and aligning with the preferences of younger employees.
- Modernize your offer with flex funds and lifestyle benefits. To complement existing offerings like the MultiSport card, many employers are introducing flex funds that allow employees to choose from a range of voluntary benefits or adapt their core benefits package. Discount portals and meal vouchers are also gaining popularity among employers to better support employees’ financial wellbeing.
- Expect growing demand for tailored, tech-enabled solutions. As local expectations evolve, benefits strategies in Bulgaria will need to offer more choice and customization. Intuitive benefits platforms will help organizations manage this complexity – reducing manual processes, staying locally relevant, and appealing to a modern, mobile workforce.
Wherever your people are located, an exceptional employee benefits experience is foundational to your ability to attract and motivate the very best people. Download our Going global with benefits guide to help you navigate local benefits in Bulgaria, reduce benefits administration, and deliver benefits flexibility.
04.03.25
