Cost of an employee in Bulgaria (2026)
What an employee really costs an employer in Bulgaria: gross salary plus mandatory employer social contributions.
On a gross salary of €1,315 per month in Bulgaria, an employer pays about €1,562 in total once mandatory employer social contributions of 18.8% on top of the gross are included.
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How salary is taxed in Bulgaria
Income tax in Bulgaria is a flat 10% on taxable income.
Employees also pay social contributions of around 13.78% of gross salary.
The standard VAT rate is 20%.
Frequently asked questions
What does it cost to employ someone in Bulgaria?
On top of the gross salary, an employer in Bulgaria pays mandatory social contributions. The total cost of employment is the gross salary plus those employer contributions.
Are employer contributions the same as salary deductions?
No. Employer contributions are paid by the company in addition to the gross salary, while employee deductions (income tax and social contributions) are taken out of the gross to leave the net take-home pay.
Employer-contribution rates are approximate and may be capped or vary by region and sector.
Approximate 2026 estimate. Simplified model, verify before relying on it. Not tax advice.
Rates updated June 2026