2026 payroll changes in short: In 2026 Bulgaria moved payroll to the euro and set the minimum wage at €620.20, Romania raised its minimum wage to RON 4,325 from 1 July, Estonia raised it to €946 from 1 April, and Ukraine set it at UAH 8,647 from 1 January. This guide sets out the new figures, the tax and contribution rates employers pay on them, and what to check before you run payroll in each country.
2026 payroll changes at a glance
| Country | Minimum monthly wage 2026 | Personal income tax | Employee contributions | Employer contributions |
|---|---|---|---|---|
| Bulgaria | €620.20 (BGN 1,213) from 1 January | 10% flat | 13.78% | About 18.92%–19.62%, by sector |
| Romania | RON 4,050 to 30 June; RON 4,325 from 1 July | 10% flat | 35% (25% pension + 10% health) | 2.25% (labour insurance) |
| Estonia | €886 to 31 March; €946 from 1 April | 22% flat, €700 monthly basic exemption | 1.6% unemployment insurance + 2% funded pension (default) | 33% social tax + 0.8% unemployment insurance |
| Ukraine | UAH 8,647 from 1 January | 18% flat | 5% military levy | 22% unified social contribution |
Bulgaria: euro payroll and a new minimum wage
Bulgaria adopted the euro on 1 January 2026 at the fixed rate of 1 EUR = 1.95583 BGN. Since that date all salaries, benefits, taxes and social contributions are paid in euros.
Bulgaria minimum wage 2026
The minimum monthly wage is €620.20 (BGN 1,213) from 1 January 2026. Employers had to raise any salary below this level from that date and file the updated employment record with the National Revenue Agency within three days.
Maximum insurable income
Social security contributions are capped at a maximum monthly insurable income. The cap was €2,111.64 from January to July 2026 and rose to €2,300 from 1 August 2026, under the 2026 State Social Security Budget Act (State Gazette No. 68 of 28 July 2026). The minimum insurable income for self-employed people rose from €550.66 to €620.20 on the same date.
Tax and contribution rates
- Personal income tax: 10% flat on employment income.
- Employee social security and health insurance: 13.78% of gross insurable income.
- Employer social security and health insurance: about 18.92% to 19.62%, depending on the sector’s work-accident fund rate.
- Food vouchers: tax-free up to €102.26 per employee per month.
Example: for an employee on the minimum wage of €620.20, employer contributions at 18.92% add about €117, so the monthly cost to the employer is about €737 before any benefits.
Romania: minimum wage rises on 1 July 2026
Romania minimum wage 2026
Romania postponed its usual January review. The gross minimum wage stayed at RON 4,050 from 1 January to 30 June 2026 and rose to RON 4,325 from 1 July 2026 (just under €850), under Government Decision No. 146/2026. The hourly minimum rose from RON 24.496 to RON 25.949. The construction sector has a higher minimum of RON 4,582.
Employers must raise every full-time salary below RON 4,325 from 1 July. Romanian rules also limit how long an employee can be kept on the minimum wage, so employers should track how long each employee has been paid at that level.
Tax and contribution rates
- Personal income tax: 10% flat, calculated after employee contributions and any personal deduction.
- CAS (pension): 25% of gross, paid by the employee. Of this, 4.75% goes to the employee’s Pillar II private pension fund.
- CASS (health): 10% of gross, paid by the employee.
- CAM (labour insurance): 2.25% of gross, paid by the employer, with no cap.
- Dividend tax: raised to 16% from 1 January 2026.
Estonia: minimum wage rises on 1 April 2026
Estonia minimum wage 2026
The minimum monthly wage was €886 from January to March 2026 and rose to €946 from 1 April 2026, following an agreement between the Estonian Trade Union Confederation and employer organisations.
Tax and contribution rates
- Income tax: 22% flat, with a basic exemption of €700 per month.
- Social tax: 33%, paid by the employer. In 2026 the monthly base for the minimum obligation is €886, so the minimum social tax is €292.38 per month.
- Unemployment insurance: 1.6% withheld from the employee and 0.8% paid by the employer.
- Funded pension (II pillar): 2% of gross by default; employees can choose 4% or 6%.
Ukraine: new minimum wage and the 5% military levy
Ukraine minimum wage 2026
The minimum monthly wage is UAH 8,647 from 1 January 2026, set by the Law on the State Budget of Ukraine for 2026. The hourly minimum is UAH 52.
Tax and contribution rates
- Personal income tax: 18% flat on employment income.
- Military levy: 5% of gross salary, in force since 1 December 2024.
- Unified social contribution: 22% of gross salary, paid entirely by the employer, up to a monthly ceiling linked to the minimum wage.
Wartime legislation in Ukraine changes often. Confirm the current contribution ceiling and levy rate with the State Tax Service before each payroll run.
What the 2026 payroll changes mean for employers
Each of the 2026 payroll changes above has its own start date, so employers with staff in more than one of these countries should check the following before the next payroll run.
- Salaries against the new minimums: Bulgaria from 1 January, Ukraine from 1 January, Estonia from 1 April and Romania from 1 July.
- Contribution caps: Bulgaria’s maximum insurable income changed on 1 August 2026.
- Currency: all Bulgarian payroll, contracts and reports should now be in euros.
- Employment records: file salary changes with the local authority on time; in Bulgaria the deadline is three days.
- Employer cost budgets: update 2026 budgets for the higher minimum wages and Estonia’s higher minimum social tax.
How Your Expert Support can help
Your Expert Support has its own offices in Sofia, Bucharest, Kyiv and Tallinn. As an Employer of Record (EOR) and payroll provider, we apply the 2026 payroll changes for you: we update contracts and salaries, calculate taxes and contributions, and file the required reports in each country, so you can hire without opening a local entity.
Book a consultation to review your 2026 payroll in Bulgaria, Romania, Estonia or Ukraine.
Frequently asked questions
What is the minimum wage in Bulgaria in 2026?
The minimum monthly wage in Bulgaria is €620.20 (BGN 1,213) from 1 January 2026. Bulgaria adopted the euro on the same date, so salaries are now paid in euros.
What is the minimum wage in Romania in 2026?
Romania’s gross minimum wage was RON 4,050 until 30 June 2026 and is RON 4,325 from 1 July 2026. The construction sector minimum is RON 4,582.
What is the minimum wage in Estonia in 2026?
Estonia’s minimum monthly wage was €886 from January to March 2026 and is €946 from 1 April 2026.
What is the minimum wage in Ukraine in 2026?
Ukraine’s minimum monthly wage is UAH 8,647 from 1 January 2026, or UAH 52 per hour.
What are the main 2026 payroll changes in Eastern Europe?
The main 2026 payroll changes are Bulgaria’s switch to euro payroll and new €620.20 minimum wage, Romania’s minimum wage rise to RON 4,325 on 1 July, Estonia’s rise to €946 on 1 April, and Ukraine’s new UAH 8,647 minimum wage from 1 January.
What does an employer pay on top of salary in these countries?
Employer contributions are about 18.92%–19.62% in Bulgaria, 2.25% in Romania, 33.8% in Estonia (33% social tax plus 0.8% unemployment insurance) and 22% in Ukraine. Employees pay their own income tax and contributions from gross salary.
This article is for general information and reflects rules published up to 28 October 2026. Rates can change during the year; confirm the figures for your situation before running payroll.
Sources
- Bulgaria: amendments to tax and accounting legislation from 1 January 2026
- Bulgaria: social security changes from 1 August 2026
- Romania: minimum wage of RON 4,325 from July 2026
- Romania: payroll guide 2026
- Estonian Tax and Customs Board: 2026 social tax rate
- WageIndicator: Estonia minimum wage rises to €946
- State Tax Service of Ukraine: minimum salary 2026