Employment service is an important part of the employment relationship. It affects not only an employee’s employment record, but also certain employment rights, including paid annual leave and additional remuneration for length of service and professional experience.
Following the adoption and promulgation of legislative amendments, the rules for calculating employment service for people working part-time have been changed. The new rules will apply from 1 January 2027.
Under the current arrangements, an employee who works at least half of the statutory daily working hours can have the full working day recognised as employment service. This means that someone working four hours a day on a standard eight-hour schedule can currently accumulate a full year of employment service over a calendar year.
What Will Change?
Under the new rules, effective from 1 January 2027, employment service will be calculated in proportion to the actual hours worked.
For a standard eight-hour working day, 12 months of work will correspond to 12 months of employment service. For someone working six hours per day, 12 months of work will correspond to approximately nine months of employment service, while four hours per day will correspond to approximately six months.
In practical terms, someone working continuously on a four-hour schedule will accumulate employment service at roughly half the rate of a full-time employee. For an employee working six hours a day, one calendar year of work will correspond to approximately nine months of recognised employment service.
Where an employee works under more than one employment relationship, employment service will be calculated separately for each employment relationship, based on the working time performed under each one.
A key point is that employment service already acquired by 31 December 2026 will not be recalculated.
Annual Leave
The new approach will also affect the amount of basic paid annual leave available to part-time employees.
For full-time employees, the statutory minimum remains 20 working days. For part-time employees, however, the entitlement will be calculated proportionally to their working time.
This means:
- 20 working days for an eight-hour schedule;
- 15 working days for six hours;
- 10 working days for four hours.
The actual number of leave days may be higher where additional leave is provided for by law, a collective agreement or the individual employment contract.
Additional Remuneration for Length of Service and Professional Experience
Another area that requires attention is additional remuneration for length of service and professional experience.
The statutory minimum is 0.6% of the basic salary for each recognised year of employment service and professional experience, although a higher percentage may apply depending on the relevant rules and contractual arrangements.
Since this additional remuneration is linked to recognised years of employment service and professional experience, part-time employees may reach the next percentage increase more slowly under the new calculation method.
For example, where an employee is entitled to an additional 0.6% for each recognised year, working four hours a day for one calendar year will no longer automatically result in another full recognised year of employment service. The next 0.6% increase will apply once the employee has accumulated the relevant recognised year under the new rules.
Importantly, the change will not automatically reduce the percentage of additional remuneration that an employee has already acquired. Employment service and related rights acquired by 31 December 2026 will remain recognised.
Payroll Considerations
The new rules will require employers to review their payroll and employment administration processes.
Particular attention should be given to employees working part-time, as their employment service, annual leave and additional remuneration will be calculated differently from 1 January 2027 onwards.
Accurate employee records and a clear understanding of the new calculation rules will be important to ensure that payroll calculations remain correct and compliant.
Eurofast’s Take
The changes demonstrate once again that payroll is not simply about calculating salaries at the end of each month.
Employment service, annual leave and additional remuneration for length of service and professional experience are closely connected, and changes in one area can affect several payroll processes at the same time.
At Eurofast, we monitor developments in Bulgarian employment, tax and social security legislation and support employers in adapting their payroll processes to regulatory changes.
Our experience in payroll and employment-related legislation helps businesses prepare for changes, maintain accurate records and confidently meet their obligations.
Conclusion
Ultimately, effective payroll management is not only about complying with legislation. It is also about ensuring that employees receive the rights and benefits to which they are entitled and that the organisation is prepared for changes in the regulatory environment.
For more information, please contact us at [email protected] or [email protected].