Dismissal Compensation Calculator for Bulgaria
Short answer
What compensation is due for unlawful dismissal in Bulgaria?
An employee who is unlawfully dismissed in Bulgaria is entitled to compensation equal to their gross salary for the time out of work, for no more than 6 months (Art. 225(1) Labour Code). If they took a lower-paid job, they receive the difference. The dismissal must be challenged in court within 2 months (Art. 358 Labour Code), and the case is free of charge for the employee.
| Unlawful dismissal (Art. 225(1) LC) | — |
|---|---|
| Notice not observed (Art. 220 LC) | — |
| Unused paid leave (Art. 224 LC) | — |
| Time out of work (Art. 222(1) LC) | — |
| Right to a pension (Art. 222(3) LC) | — |
| Total (gross) | — |
Compensation for unlawful dismissal is capped at 6 months (Art. 225(1) Labour Code), even if the case and the time out of work last longer. The calculation uses 6 months.
The amounts are gross and only an estimate. Depending on the type of payment, tax and social security contributions may apply. Which payments are due depends on the ground for dismissal – not all rows apply at the same time.
The calculator gives indicative gross amounts under the Bulgarian Labour Code. The actual amount depends on the ground for dismissal, the contract and the court's decision. The result is not legal advice.
How is the compensation calculated?
All compensation under the Bulgarian Labour Code (КТ) is calculated on the gross salary. The calculator shows each amount separately, because they are due on different grounds and in different circumstances.
- Unlawful dismissal (Art. 225(1) Labour Code): the gross salary for the time out of work, for no more than 6 months. If you took a lower-paid job, the monthly difference is due for the same period.
- Notice not observed (Art. 220 Labour Code): gross salary / 30 × the days of notice not observed. For an open-ended contract the notice period is usually 30 days, unless a longer period – up to 3 months – was agreed.
- Unused paid leave (Art. 224 Labour Code): the calculator uses salary / 21 working days × the number of days. In practice, the gross daily wage for the last full month worked is used, so the actual amount may differ slightly.
- Closure, staff reduction, reduced workload, a work stoppage of more than 15 days, etc. (Art. 222(1) Labour Code): compensation for the time out of work, for no more than one month.
- Retirement (Art. 222(3) Labour Code): 2 months' gross salary if you have acquired the right to a pension, and 6 months' if you worked for the same employer or group of companies for the last 10 years.
Deadlines and costs of an employment case
A claim to annul an unlawful dismissal must be filed within 2 months of the termination of employment (Art. 358 Labour Code). The deadline is preclusive – if you miss it, the dismissal stands. Monetary claims, such as unpaid salary and compensation for unused leave, can be brought within 3 years of becoming due.
Employment cases are free of charge for the employee (Art. 359 Labour Code): no court fee and no expert costs are payable. If you win, the employer as a rule also reimburses your lawyer's fee.
Frequently asked questions
How many months' pay can I get for unlawful dismissal?
At most 6 months' gross salary for the time you were out of work because of the dismissal (Art. 225(1) Labour Code). If you took a lower-paid job, the difference in salary for the same period is due. Compensation for notice and unused leave may be owed separately.
How long do I have to challenge the dismissal?
2 months from the termination of employment – usually from the day the dismissal order was served on you (Art. 358 Labour Code). The deadline is strict: if the claim is filed even one day late, the dismissal stands.
Will I be reinstated?
If the court annuls the dismissal and you asked for reinstatement, it orders it. After winning the case, you have 14 days to report for work. You can also choose not to seek reinstatement and claim only compensation and correction of the ground in your employment record book.
How much does the case cost the employee?
The employee pays no court fee or costs in an employment case (Art. 359 Labour Code). If you win, the employer as a rule also reimburses the lawyer's fee you paid.
I signed a termination by mutual consent. Can I still claim compensation?
A termination by mutual consent (Art. 325(1)(1) Labour Code) is in practice very hard to challenge as an unlawful dismissal. So never sign documents under pressure. Compensation for unused paid leave, however, is as a rule due on any termination.
If you are a foreign employee or work across borders
More and more often, the employee, the employer or the work itself are in different countries. Here is what matters if you are a foreigner working in Bulgaria, work remotely for a Bulgarian employer from abroad, or have already left Bulgaria – for example, British, American or other expats.
I am a foreigner working in Bulgaria. Do I have the same rights on dismissal?
Yes. If you work in Bulgaria under an employment contract with a Bulgarian employer, the Bulgarian Labour Code protects you in the same way as Bulgarian employees – with the same compensation and deadlines. EU citizens do not need a work permit. If your residence depends on a work permit, check promptly what the dismissal means for your status.
I work remotely from abroad for a Bulgarian company. Which law applies?
It depends on the contract and on where you habitually carry out the work. The parties can choose the applicable law, but as a rule that choice cannot deprive you of the protection of the law of the country where you habitually work. That is why we assess each case individually before calculating any compensation.
I work in Bulgaria for a foreign employer. Does the Bulgarian Labour Code apply?
Often yes, where the work is habitually done in Bulgaria, but the contract and the specific circumstances are decisive. The calculator is based on Bulgarian law – if another law applies, the compensation may be different.
In which country can I sue my employer?
As a rule, an employee can sue in the country where they habitually work or in the country where the employer is based. Where several countries are involved, we assess which one is best for you, also taking the deadlines into account.
I already live outside Bulgaria. Can I challenge the dismissal without travelling?
As a rule, yes. A Bulgarian lawyer can represent you on the basis of a power of attorney, which you can sign abroad – for example, before a notary with an apostille or at a Bulgarian consulate. The 2-month deadline runs wherever you are, so do not miss it.
How are documents from abroad used – for example, a contract for a new job?
Documents in a foreign language are submitted to the court with a Bulgarian translation and, where needed, with an apostille or legalisation. For example, a contract for a lower-paid job abroad may matter for the amount of compensation for unlawful dismissal.
I am a UK or US citizen working in Bulgaria. Does anything change for me?
Your rights under the Bulgarian Labour Code are the same as those of any other employee. The difference is usually your residence status: since Brexit, UK citizens are treated as non-EU nationals unless they are covered by the Withdrawal Agreement, so a dismissal may affect a residence permit linked to the job. We check this together with the dismissal itself.
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