14.09.2022
IS SALARY PAYMENT POSSIBLE IN BITCOIN?
According to the law in Bulgaria, it is not permissible to pay the full amount of the labor remuneration in non-monetary form.
This conclusion stems from Bulgaria's international legal commitments as a member state of the International Labor Organization (ILO). Bulgaria ratified Convention No. 95 of the ILO on the protection of wages. The main purpose of the Convention is to guarantee the actual receipt of labor remuneration by workers. According to the document, wages should only be paid in legal tender, and payments in the form of checks, receipts or coupons or in any other form believed to be legal tender are prohibited.
Partial payment of wages in kind is permitted in industries and occupations where such payment is customary or desirable due to the nature of the industry or occupation concerned. In no case is it allowed to pay wages in alcohol or drugs. In cases where partial payment of wages in kind is permitted, appropriate measures must be taken to ensure that benefits in kind are for the personal use of the worker and his family and are in their interest. It should also be ensured that the value of such benefits is fair and reasonable.
According to Bulgarian legislation, labor remuneration is paid in cash. Additional labor remuneration or a part of it may be paid in kind, if this is provided for in an act of the Council of Ministers, in a collective labor agreement or in the labor contract. The law in our country also says that additional labor remuneration provided in kind cannot include alcoholic beverages, harmful narcotic substances and tobacco products.
Insurance contributions are not calculated and paid on the funds provided in the form of food vouchers to employees, including persons working under management contracts.
It is important for employers to know that social costs for 2022 of up to BGN 200 per month provided in the form of food vouchers to each employee are not taxed. For comparison, before the entry into force of this provision (from 01.01.2022), this amount was BGN 80 per month per person.
Reference:
Convention No. 95 of the International Labor Organization (Articles 3 and 4 of the Convention)
Art. 269 of the Labor Code
Art. 6, para. 3 of the Ordinance on the structure and organization of the salary
Art. 209, para. 1 of the Law on Corporate Income Taxation
Art. 2, para. 3 of the Ordinance on the elements of the remuneration and on the income on which social security contributions are made
§ 1, para. 7 of the Transitional and Final Provisions to the Law on the State Budget of the Republic of Bulgaria for 2022.
