Advance tax(авансови вноски)
Quarterly payment of income tax by self-insured persons — due by 30 April, 30 July and 30 October. Governed by Art. 43 PITA.
→ Self-insuredBulgarian Labor & Tax Glossary
Plain-English explanations of the most common terms in the Bulgarian Labor Code, Social Insurance Code and Personal Income Tax Act — from "insurance income" to "Art. 333 LC". Ideal for a first lookup.
Annual leave (paid)(платен годишен отпуск)
Minimum 20 working days per calendar year under Art. 155 LC. Carries over for 3 years; cash compensation owed at termination under Art. 224 LC.
→ Annual leaveArt. 222 LC(чл. 222 КТ)
Severance compensation. Para 1: for unemployment (up to 1 salary, up to 6 by agreement); Para 3: at retirement (up to 6 salaries).
→ CompensationArt. 224 LC(чл. 224 КТ)
Compensation for unused paid annual leave on termination. Daily rate × unused days.
→ Annual leaveArt. 326 LC(чл. 326 КТ)
Termination by the employee with notice. Standard period: 30 days. Written form required.
→ Notice periodArt. 327 LC(чл. 327 КТ)
Termination by the employee without notice — for employer's fault (delayed pay, unsafe conditions, unilateral change). Compensation due under Art. 221.
Art. 328 LC(чл. 328 КТ)
Termination by the employer with notice — closure, redundancy, reduction of work, lack of skills, retirement, and others.
→ DismissalArt. 330 LC(чл. 330 КТ)
Termination by the employer without notice — disciplinary dismissal (Art. 190 LC), conviction, lapse of license, etc.
Art. 333 LC(чл. 333 КТ)
Special dismissal protection for certain categories — mothers of children under 3, pregnant women, workers on sick leave, employees on reduced-capacity status, trade-union representatives. Requires prior permission from the General Labor Inspectorate.
Art. 358 LC(чл. 358 КТ)
Limitation periods — 2 months to challenge a dismissal; 3 years for claims for compensation and unpaid pay.
BNB(БНБ — Българска народна банка)
The central bank of Bulgaria. Sets the base interest rate used to calculate statutory interest on unpaid labor claims.
Bulgarian Ltd. (EOOD / OOD)(ЕООД / ООД)
A limited-liability legal entity. ЕООД has a single owner; ООД has two or more. Taxed at 10% corporate tax + 5% dividend tax on distribution.
→ Ltd vs FreelancerCIT (Corporate Income Tax)(ЗКПО)
The act that taxes profits of legal entities. Rate: 10% flat. Combined with 5% dividend tax on distribution.
Daily rate(дневна ставка)
The average daily gross salary for the last full month — the base for compensation under Arts. 220, 222 and 224 LC.
Disciplinary dismissal(дисциплинарно уволнение)
Termination under Art. 330 LC for gross breach of work discipline — three late starts of over 1 hour, two consecutive unexcused absences, abuse of trust, etc. No notice and no Art. 222 compensation due.
→ DismissalDOO(Държавно обществено осигуряване)
State Social Insurance — the first pillar of the pension system. Funds pensions, sick pay and NSSI benefits. Employee contribution: 6.58%; employer: 8.22% for 2026.
DZPO(Допълнително задължително пенсионно осигуряване)
Supplementary mandatory pension insurance — the second pillar for persons born after 31.12.1959. Total contribution: 5% (2.20% employee + 2.80% employer).
General Labor Inspectorate(ИА ГИТ — Изпълнителна агенция „Главна инспекция по труда")
The state body that enforces Bulgarian labor law. Issues Art. 333 LC dismissal permissions; accepts violation reports; imposes fines.
Gross salary(бруто заплата)
The amount of pay before social-insurance contributions and income tax. The base for most compensation under the Labor Code.
Insurance income(осигурителен доход)
The income on which social-insurance contributions are paid. For employees — equal to gross (up to the cap). For self-insured persons — chosen in the range BGN 1,077–4,130 per month.
Insurance length(осигурителен стаж)
The time during which a person was insured for the relevant risk. Accrues for each month with paid contributions. The basis for pension and benefit entitlement.
Labor Code(Кодекс на труда (КТ))
The principal act governing employment relations in Bulgaria. Regulates conclusion, performance and termination of employment contracts, leave, compensation and working hours.
LKK(Лекарска консултативна комисия)
Medical Consultative Commission — a panel of 3 doctors at a medical institution issuing sick notes for periods over 14 days. Longer cases (over 6 months) are reviewed by TELK.
Maximum insurance income(максимален осигурителен доход)
The upper limit on income for social-insurance contributions. For 2026 — BGN 4,130 / month. Income above the cap is not insured.
Minimum wage (MRZ)(МРЗ — минимална работна заплата)
The minimum gross salary for full-time work, set by Council of Ministers decree. For 2026 — BGN 1,077 / month.
Net salary(нето заплата)
The take-home amount after social-insurance contributions (13.78%) and income tax (10%) are withheld.
Notice period(предизвестие)
The period between submitting a termination request and the actual termination. Standard: 30 days (Art. 326 LC).
→ Notice periodNRA (National Revenue Agency)(НАП — Национална агенция за приходите)
The state body that collects taxes and social-insurance contributions. Receives PITA, CIT and VAT declarations.
NSSI (National Social Security Institute)(НОИ — Национален осигурителен институт)
The state body that pays out benefits for temporary incapacity, maternity, unemployment and pensions. Funded by social-insurance contributions.
Overtime(извънреден труд)
Work outside the established working hours (Art. 143 LC). Paid with a premium of +50% to +100% (Art. 262 LC). Annual cap: 150 hours.
→ OvertimePaternity leave(бащински отпуск)
15 calendar days of paid leave for the father at the birth of a child (Art. 163(7) LC). NSSI pays 90% of the average insurance income.
→ PaternityPITA (Personal Income Tax Act)(ЗДДФЛ)
The act that taxes the income of individuals in Bulgaria. Employee rate — 10%; liberal-profession rate — 15% on taxable income.
Self-insured person (SOL)(СОЛ — самоосигуряващо се лице)
A person who pays their own social-insurance contributions — liberal professions, owners of Bulgarian Ltd. with personal work, farmers, sole traders. Total 27.80% on a chosen insurance income.
→ Self-insuredSIC (Social Insurance Code)(КСО — Кодекс за социалното осигуряване)
Regulates insurance contributions, insurance length and NSSI benefits — sick pay, maternity, pensions.
State Gazette(Държавен вестник (ДВ))
The official publication of the Republic of Bulgaria, in which laws and secondary acts are promulgated. Norms enter into force from the date of publication.
TELK(ТЕЛК — Териториална експертна лекарска комисия)
Territorial Expert Medical Commission — a panel that determines the percentage of permanently reduced capacity for long-term or chronic illness. TELK decisions establish entitlement to a disability pension and social support.
Unlawful dismissal(незаконно уволнение)
Dismissal without grounds, in breach of procedure or of the Art. 333 LC protection. Challenged in the district court within 2 months (Art. 358 LC). Right to reinstatement and compensation up to 6 salaries (Art. 225 LC).
Workplace adjustment(трудоустроен)
A worker with permanently reduced capacity moved to a lighter role on medical grounds. Protected from dismissal under Art. 333 LC.
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