Created on October 31, 2025.
If you are an asylum-seeker, you can work 3 months after the date you submitted your application for international protection.
If you are a refugee, have been granted asylum, have temporary protection, or have humanitarian status, you have the right to work legally in Bulgaria under the same conditions as Bulgarian citizens. You can read more about your rights as a worker in Bulgaria here.
If you work in Bulgaria, it is mandatory to do so legally – most often by signing a labor or civil contract. In this article, you will learn more about the difference between a labor contract and a civil contract, as well as your rights and obligations if you work under a civil contract.
I. What are labor and civil contracts?
There are 2 types of contracts in Bulgaria used as a basis for payment of work.
The employment contract:
- The Bulgarian Labor Law regulates it
- It offers lower flexibility in the working hours, breaks, duration, but ensures greater security
- It can be for a fixed-term or permanent
The civil contract:
- It is a more flexible type of contract used for performance of services
- It is temporary and easier to terminate
- It’s not the Bulgarian Labor Law, but the Obligations and Contracts Act that regulates the relationship between you and the employer under such a contract
Do not agree to work without an employment or a civil contract! You may find it tempting but it can potentially expose you to a great risk of exploitation after which you will be deprived of the rights that are normally guaranteed to a person working under a contract.
II. What is a civil contract?
With a civil contract, you, as the "assignee," undertake to provide a specific production result at the request of another person or company, referred to as the "assignor."
The law regulates various civil contracts, such as a contract for the performance of an action (e.g., a contract for the manufacture of pictures or a logo), a contract for the performance of legal actions (also known as a contract for services), a contract for the management of a commercial company, etc.
The contract may be concluded verbally, but it is more common to conclude it in writing, as this better protects your rights as an assignee and the rights of the person who assigns the work to you.
Important! If you work under a civil contract, you are required to file an annual tax return with the National Revenue Agency, declaring your income for the year.
III. What are the main differences between aa labor contract and a civil contract?
1. There is a difference in the content of the two contracts:
1.1. A labor contract is always in writing and includes detailed working conditions – your place of work (where exactly you will work), the length of the working day (e.g., 8 hours or 4 hours), the amount of your remuneration, how many days of paid annual leave you have, etc.
1.2. A civil contract can be written or verbal and must contain minimum information without which it cannot be concluded – e.g. who the parties to the contract are (you and the person hiring you), what the subject of the contract is – e.g. to make something, paint a picture, do some design work, etc. , what is the price you will be paid. You can also agree on additional terms in the contract at your discretion.
Important! In a civil contract, you determine the place where you will work. You also determine and agree on how many hours a day you will work or how long it will take you to complete the work agreed in the contract. Therefore, the work you do under a civil contract counts towards your insurance experience, but does not count towards your work experience. Only work under a labor contract counts towards work experience.
2. There is a difference in remuneration under the two contracts
If you work under a labor contract, your employer cannot pay you a salary lower than the minimum wage for the country. In 2025, this is BGN 1,077.
If you work under a civil contract, you negotiate the amount of remuneration yourself.
3. Differences in the right to paid leave and sick leave under a labor contract and a civil contract
If you work under a civil contract, you are not entitled to paid annual leave. You are also not entitled to compensation from the National Social Security Institute (NOI) when you fall ill and cannot work, or when you become pregnant and subsequently give birth to a child. Important! In order to receive cash benefits in these cases, you must pay social security contributions yourself every month. For more information on sick leave, see here.
4. Difference in insurance contributions under a labor contract and a civil contract
Social security contributions in Bulgaria are compulsory financial contributions you pay to the state when you work. They are paid either by your employer or by you, depending on the type of contract you have.
Contributions are paid to as a form of insurance so that you can be compensated in certain situations, known as "risks", that prevent you from working, such as:
- general disease;
- maternity;
- disability due to general illness;
- old age and death;
- occupational accident and disease;
- unemployment.
As a person working under a civil contract, you are protected against far fewer risks than persons working under an employment contract. For example, compulsory social insurance only covers the risks of general illness, old age, and death. You are not necessarily insured for occupational accident and disease, maternity, or unemployment.
For more information about social insurance in Bulgaria, see here.
If you work under a labor contract, you are insured for all risks, and the insurance contributions are paid by your employer. When your employer pays your insurance contributions, a certain percentage is deducted from your salary, and the rest is paid by your employer.
If you work under a civil contract, you must notify the person who assigns you the work whether you are self-insured and whether you receive remuneration on another basis (e.g., you also work under a labor contract). You can see who is self-insured here. If you are such a person, you must pay your social security contributions yourself by the 25th day of the month following the month for which they are due (e.g., contributions for October are paid by November 25).
If you are not self-employed, in certain cases specified by law, the person who assigns you work under a civil contract deducts social security contributions from your remuneration and pays them into the State Social Security Pension Fund on your behalf.
If you want to enter into a civil contract and have questions about the payment of social security contributions, we advise you to seek the assistance of a lawyer who can provide you with detailed information.
Finding a good lawyer in Bulgaria
5. Differences in employee responsibility
An employer under a labor contract has authority over their employees and may impose various types and degrees of disciplinary sanctions on them. If you work under a labor contract, you are required to comply with the rules of work, and if you violate your obligations under the labor contract, you may be punished. For example: if you are late for work or systematically fail to perform your duties. The employer may punish you with a warning or a more severe penalty. The most severe penalty is disciplinary dismissal, i.e. termination of your labor contract.
If you work under a civil contract, the assignor cannot exercise such authority over you. However, if you fail to perform the work for which you were hired, you may be penalized in another way, if this is provided for in the contract. For example: it may be agreed that if you fail to complete the work on time, the client may terminate the contract and not pay you remuneration, etc.
6. Differences in the term of the contract
A labor contract may be concluded for a fixed term, but also for an indefinite period. However, a civil contract is always fixed-term – for a specific period of time.
7. Differences in contract termination and protection against dismissal
If you work under aa labor contract, the Labor Code protects you against unlawful dismissal by your employer. This law describes in detail under what circumstances and when the labor contract can be terminated by you or your employer. Various financial compensations are also provided for if you or your employer unlawfully terminate the contract. For more information on the termination of an employment contract, see here.
If you work under a civil contract, you do not have such protection. The contract is usually terminated upon its expiry or completion of the work. In the text of the contract, you can also provide for other conditions for termination – by mutual agreement of the parties, at the request of one party with notice, etc.
If your civil contract is terminated unlawfully, you can still seek your rights in court, but without enjoying all the privileges that the Labor Code gives to employees under a labor contract.
In such cases, we advise you to immediately seek the assistance of a lawyer who can provide you with legal assistance.
Finding a good lawyer in Bulgaria
IV. Which contract is more suitable for me?
A labor contract gives you more rights and better protection—guaranteed minimum pay, fixed working hours, the right to vacation and rest, as well as health and social insurance without having to file a separate annual tax return.
At the same time, a civil contract is much more flexible and preferable if you have a more specific profession, including freelance work, or if you are performing a specific, one-off job.
Important! Please note that some employers, although they should offer you a labor contract, may insist that you sign a civil contract, which is more advantageous for them.
If you are unsure about which contract to sign, we advise you to consult a lawyer who can advise you and protect your rights: