Your 2026 Euro Transition Checklist: Legal, Financial, and Labor Law Essentials

Starting January 1, 2026, Bulgaria will officially adopt the euro. This long-anticipated change brings Bulgaria closer to full integration with the European Union and will impact every company, employer, and employee in some way.

While the transition is designed to be smooth, it still requires preparation — especially when it comes to how businesses handle contracts, payroll, internal policies, and legal compliance.

Here’s a straightforward overview of what to expect and how to get ready.

What Happens on January 1, 2026?

On this date, the Bulgarian lev (BGN) will be replaced by the euro (EUR) at a fixed exchange rate of 1 EUR = 1.95583 BGN. There’s no need to renegotiate contracts — all financial amounts in BGN will automatically convert to euro using this rate.

Do You Need to Change Your Contracts?

The general answer is no. All existing contracts, agreements, and legal documents will remain valid. Any amounts stated in BGN will simply be understood in euro after conversion.

However, this is a good time to:

• Review and update contract templates

• Adjust internal policies that refer to specific monetary values

• Make sure long-term agreements are clear and up to date

  
  

Dual Display Period: What It Means

In the months before and after the switch to the euro, Bulgaria will go through a “dual display” period. This means businesses will be required to show prices and amounts in both BGN and EUR. This applies to:

• Price tags

• Invoices

• Employee payslips

• Financial offers or quotes

Changes in Employment and Labor Rules

While the euro adoption itself does not directly change Bulgaria’s labor laws, a few important updates are coming around the same time:

1. Electronic Employment Records (from June 1, 2025)

Employers must report all employment-related actions (hiring, changes, and terminations) digitally through the new government platform. The old paper labor books are being phased out.

2. Expanded Definition of Length of Service (from January 1, 2026)

A broader range of work experience will count toward employees’ "length of service" under Bulgarian labor law. This includes:

• Freelance work

• Agency or service contracts

• Time spent working abroad

• Agricultural cooperative work

This change affects how things like paid leave, severance, and pension rights are calculated.

What You Should Do Now

To make sure you’re ready for 2026, here are a few steps to take:

• Review contracts and financial documents. Make sure they’re clear and ready for the currency switch.

• Update your payroll and accounting systems. You’ll need to issue salaries, payslips, and invoices in euro.

• Train your HR and finance teams. They should understand the dual display rules and upcoming labor law changes.

• Communicate with employees. Let your staff know what to expect and how the transition will affect their salaries and documents.

Conclusion

Bulgaria’s move to the euro is a big step forward — and it doesn’t have to be complicated. By preparing early, your business can adapt smoothly, avoid last-minute confusion, and stay compliant with new rules.

If you’d like help reviewing your contracts, updating internal systems, or understanding how the labor law changes may affect your team, we’re here to support you.