Bulgaria adopted the euro on 1 January 2026 at the fixed rate of EUR 1 = BGN 1.95583. For
employers and Employer of Record (EOR) providers, the change is now part of everyday payroll
administration. The practical question is whether pay calculations, employee explanations and
client reports tell the same story. [1]
Although the changeover date has passed, a review can still uncover inconsistent templates or
unclear historical figures. International teams should therefore focus on the controls behind the
numbers, especially when comparing earlier lev amounts with current euro costs.
Separate currency conversion from contract changes
Existing employment contracts do not need to be signed again solely because Bulgaria adopted the
euro. Official guidance explains that remuneration converts automatically under the applicable
rules. However, a separate decision to change pay, duties or other terms needs its own
employment assessment. [2]
For example, an employee may receive both a converted salary and a separately approved
increase. Explain those steps individually. Otherwise, the employee or client may mistake a
currency adjustment for a commercial decision about compensation.
Make the euro figures easy to explain
Check payroll rules at component level
Dividing an amount by the fixed rate is only the start. Official technical guidance distinguishes the
special rounding treatment of remuneration from the rules for deductions and other items. As a
result, a general currency calculator should not be the only payroll check. [3]
Ask the payroll team to demonstrate a small sample of converted records, including a basic salary
and a relevant additional payment. Then record which rule applies, who checked the result and
how any difference was resolved. This is a practical quality check, not a substitute for a payroll
specialist’s assessment.
Keep the 2026 minimum wage in the correct context
Decree No 243 of 13 November 2025 sets the minimum monthly wage from 1 January 2026 at EUR
620.20 for a full working month. It also sets EUR 3.74 per hour under normal eight-hour, five-day
working conditions. [4]
These are statutory wage figures, not a complete employee budget or an EOR price. Therefore, a
proposal should show the agreed gross salary, applicable employer costs and the provider’s service
fee separately. Ask the payroll contact to assess the actual working arrangement before using a
headline amount in an offer.
Preserve the meaning of historical records
A payment made in euro can relate to an earlier lev period. The official FAQ distinguishes the
payment currency from the currency used for certain historical payroll records and declarations.
Consequently, changing every archived figure to euro can remove useful context. [3]
Keep the original period and currency visible in comparison reports. If the client also needs a euro
view, label it as a converted comparison and explain the method. This makes year-on-year changes
easier to understand and helps reviewers separate exchange presentation from actual pay
movements.
Align the client report with the employee explanation
A useful report lets the reader follow the amount from approved terms to payroll and invoicing.
Agree who owns that explanation and where questions should go. In an EOR partnership, the
client-facing team and the Bulgarian employment team should use the same confirmed
information.
Before signing off a reporting format, test it with a simple question: can a colleague explain why
this month differs from the previous one? If the answer requires several disconnected
spreadsheets, simplify the supporting notes. Clear reporting also helps an overseas manager avoid
giving an employee an incomplete explanation.
Bring a specific payroll question to the discussion
Euro-denominated reporting can make comparisons more convenient for a euro-based client.
Nevertheless, the currency does not determine the employment arrangement, service scope or
payroll responsibilities. Those points still need to be agreed for the intended hire.
Planning Bulgarian hires or reviewing local employment support? Contact Excellence BC
with your company, expected headcount and target start period. Include the payroll or reporting
questions you want to resolve so the manager can discuss the appropriate scope.