STEPS YOU NEED TO TAKE
STEP I – Review and Update of Employment Documentation and Systems
А) Review and update of employment-related documentation:
а) Review of existing (current) employment contracts and related annexes =>According to the „Principle of Continuity and Automatic Conversion of Amounts from Leva to Euro,“, въвеждането на евротоDOES NOT CHANGE the terms of existing contracts that express amounts in leva or refer to amounts in leva – this means that amendments will only be necessary if explicitly agreed by both parties.
b) Updating of:
– Internal procedures and templates for hiring, termination, and salary changes with the euro as the currency;
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Payroll reports, declarations, and payslips in euro after the new currency is introduced.
B) Review and update of internal systems – Updating payroll systems used by the employer – the system must support the entry of wages in euro and allow for automatic conversion from leva.
STEP II – Information Campaign
А)For employees:
а) Informing employees about the transition to the euro and how it will affect their salaries;
б) Explaining the special rule for favorable rounding when calculating salaries (noting that the gross salary must not be lower than the amount in leva divided by 1.95583);
B) For personnel handling employment data and documentation:
а) Training for HR and Payroll departments – training should include:
– Drafting internal guidelines on conversion and rounding rules, especially the special rule applicable to salaries; rules for filing tax returns and social security declarations;
– Preparation of sample payslips and salary simulations in euro (with practical examples);
b) Coordination with Finance and Legal departments:
– Review of special cases (e.g., international contracts, upcoming business trips, etc.);
– Coordination with the Legal department regarding contract clauses, and monitoring regulatory guidance from the BNB, NRA, Ministry of Labor and Social Policy, the EU, and others.
STEP III – Calculation and Payment of Salaries
А) Currency conversion of salaries – divide the amount in leva by 1.95583;
B) Application of rounding rule – always in the employee’s favor (if the third decimal is > 0 round up the second one);
C) Proper conversion of bonuses, allowances, social contributions, and other components into euro;
D) Processing salaries for the months around the introduction date – for example, December 2025 in leva, January 2026 in euro.
Have additional questions about the euro introduction?
Contact us – the team at Sb Accounting & Consulting is available to provide information and practical support for a smooth transition to the new currency.