Labor contract requires the employer or his accountants to send a notification letter to the National revenue agency (НАП, NAP in Bulgarian abbreviation)and after the conclusion of this type of contract worker is obliged to join the company (full or part time) no later than a week after certified statement from the NRA is served. This type of contract scrapes bigger percentage of gross salary, but gives the employee more in terms of social and health insurance.

Contracts for services are preferred more recently by many employers and employees either because of their more “open” nature. While this type of agreement has its advantages for both sides, the worker the worker receives less security. There are agreed normative costs which are not taxed so less of the gross salary goes in budget payments, but on the other hand work experience is not recognized and the employer does not pay anything while employee is on leave due to illness.

There are also other types of agreement between company and individual who do the job, but Labor and Civil contracts are the main kinds.

Contractual relationships of employees in Bulgaria, regardless if they work for local or foreign company, are precisely regulated by law. In depth knowledge of these working agreements is essential for every business entity so a subscription to the monthly accounting services helps a lot in this matter.

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