How to stay compliant

Employer-of-Record (EOR) in Bulgaria: Do You Need One?

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How to stay compliant

Employer-of-Record (EOR) in Bulgaria: Do You Need One?

So you want to hire someone in Bulgaria. Problem is, your company is located somewhere else.  

If you’ve done some research, you’ve probably been told you should be using an Employer-of-Record (EOR). Why? Well, if your company isn’t located in Bulgaria, using an EOR can help you bypass the traditional obstacles to hiring full-time employees.  

But there’s a catch: EOR solutions in Bulgaria are expensive—usually at least $500 per month per employee—and can take time to set up. And because you’re complying with a different set of labor laws, logistics and benefits can end up costing you lots of time and money. While they will save you time from setting up your own entity, they’re rarely cheap or fast.

The good news? There’s another way to hire remote workers in Bulgaria, and it doesn’t involve forking out huge amounts of money for an EOR.  

The solution: Hire your teammates in Bulgaria as contractors. If you’re hiring remotely and your teammates have autonomy, there’s a good chance you can make compliant contractor hires. You still have to use locally-compliant contracts, but the process is a lot easier, more affordable, and faster.

We built Thera to help you make contractor hires, in 150+ countries (like Bulgaria). So you can hire the people you want on your team, without paying thousands for an EOR. You can get set up in a couple of clicks—and you’ll only pay $49 per contractor per month.  

It’s just as easy as it sounds. No catch. Here’s what Thera looks like vs. an EOR in Bulgaria:

Everything you should know about using an EOR in Bulgaria

Are you considering hiring independent contractors abroad but are unsure of the legal and regulatory conditions specific to the country? Look no further than Bulgaria. In this post, we'll break down everything you should know about using an EOR in Bulgaria and why hiring an independent contractor might be easier.

What is an EOR?

First things first, let's define what an EOR is. An EOR, or Employer of Record, is a third-party company that acts as the legal employer for your workers. This means that the EOR is responsible for payroll, benefits, and compliance with local labor laws.

Why use an EOR in Bulgaria?

Using an EOR in Bulgaria can be beneficial for companies that want to expand their business without setting up a legal entity in the country. An EOR can also help companies navigate the complex legal and regulatory environment in Bulgaria.

Legal and regulatory conditions in Bulgaria

Bulgaria has a strict labor code that outlines the rights and obligations of both employers and employees. Some of the key regulations that companies must comply with include:

- Minimum wage: The minimum wage in Bulgaria is set by the government and is currently 650 BGN per month.

- Working hours: The standard working week in Bulgaria is 40 hours, with a maximum of 8 hours per day.

- Paid leave: Employees are entitled to 20 days of paid leave per year.

- Social security: Employers are required to contribute to social security for their employees, which includes health insurance, pension, and disability insurance.

Why hire an independent contractor?

While using an EOR in Bulgaria can be beneficial, hiring an independent contractor may be easier for some companies. Independent contractors are not subject to the same labor laws and regulations as employees, which can make it easier for companies to work with them. Additionally, independent contracting agreements tend to be more flexible overall.

What if I accidentally misclassify my contractors?

We’ve got two pieces of good news for you. For one, if you’re hiring remotely, it’s unlikely you’ll misclassify your contractors. Many of the things that qualify people as employees, such as company equipment and set working hours, don’t typically apply to remote work.

Still, it’s helpful to have the comfort of knowing you’re not at risk for misclassification. That’s why, at Thera, we’ve launched Misclassification Assurance: so you can hire contractors abroad, worry-free. Learn more about hiring with Thera below.

Hiring contractors? Thera can save you a ton of time

If you’re hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. Which is why we built Thera, which saves you 90% the time you spend on contractor paperwork each month.

With Thera, you can compliantly hire your contractors in 150+ countries, onboard them in minutes, and pay them all at once (in a click). It’s global contractor payroll, finally simplified.

Sound interesting? Click here to book a demo and see the platform firsthand

Run your global workforce on autopilot with Thera

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