But for global mobility support & managing assignees in Sofia or Plovdiv, it means added complexity for payroll and compliance. Is your team prepared for the switch? Make sure you’ve covered all the bases with our 13-point checklist.
Base #1 – Updating your HR stack
The Bulgarian lev (BGN) stays valid for cash purchases until 31 January, but all digital payments, including salaries and taxes, must be in euros (EUR) from midnight on New Year’s Eve. This necessitates major updates to your HR tools and platforms.
1. Update Your Payroll and HRIS Systems
Ensure your systems can process all salaries and deductions in euros from 1 January 2026. Apply the fixed conversion rate (1 EUR = 1.95583 BGN) for all current calculations and historical conversions.
2. Run Payroll Tests
Conduct test payroll runs in euros. Review sample payslips to check for accuracy, correct rounding, and a clear display of amounts. If possible, show values in both BGN and EUR to help employees understand the change.
3. Coordinate with Employee Banks
To prevent payment delays, ask your employees to confirm with their banks that their personal accounts are set up to receive EUR payments without any issues.
Base #2 – Auditing your documentation for compliance
Bulgaria’s transition to the euro coincides with other legislative changes, including a 12.6% increase in the minimum monthly wage, to 620.20 euros. Keeping your documentation in order is essential to manage compliance risks arising from these changes.
4. Verify Minimum Wage Compliance
Confirm that all your local hires meet the new minimum monthly wage. Also review salary benchmarks for your international assignees, as minimum wage hikes often affect salary thresholds for work permits and intra-corporate transferee (ICT) cards.
5. Update Employment Contracts
Every employment contract denominated in BGN will need an addendum or update. You must formalise the currency change from BGN to EUR in writing.
6. Review Letters of Assignment
If any assignees have a split-pay arrangement, ensure the local portion of their pay is officially switched to EUR in their assignment letter.
7. Alert Local Vendors
Notify your local partners – housing providers, destination services consultants, legal advisors – about converting contracts to EUR. Be vigilant for unauthorised fee adjustments disguised as a currency conversion.
8. Document Everything
Confirm that all contract updates, system changes, and policy amendments are documented and filed correctly for future audits.
Base #3 – Allaying employee concerns
For your employees in Bulgaria – assignees included – this change is largely positive. However, it can create short-term anxiety about pay and purchasing power. Addressing these worries starts with clear and timely communication.
9. Distribute a Simple Guide
Provide a clear, concise one-pager explaining the euro adoption and how it will affect their salaries. The guide should include the fixed conversion rate and a guarantee that the value of their pay will not change.
10. Explain the New Payslips
Share examples of the new euro payslips. Explain how deductions are calculated and indicate where the converted amounts are displayed.
11. Update Cost-of-Living Allowances (COLA)
Review and adjust COLA to reflect the new euro pricing. Clearly communicate that any apparent price changes are due to the conversion, not an increase in value.
12. Host a Q&A Session
Organise a virtual town hall or Q&A session to address employee concerns about payroll, allowances, or banking. This creates a space for transparency and builds trust.
13. Highlight the Benefits
Remind your employees of the advantages. They will no longer face conversion fees when travelling in the eurozone, pricing will be more transparent across the EU, and banking will be simpler!
Are you ready?
Are there items on this checklist you haven’t completed yet? You still have time, but not much.
Now only weeks away, Bulgaria’s entry into the eurozone is a historic milestone and a significant opportunity for people and businesses across the euro area. Clear communication and well-documented procedural and system updates are your best tools to minimise disruption to business operations and your employees on the ground during this transition phase.
Sending assignees to Bulgaria soon? Discuss their immigration and relocation requirements with us, no strings attached.