Closing a SIRV Reference Period: From Schedules to Payroll
A practical process for closing a Bulgarian SIRV reference period: reconcile schedules and actual hours, recalculate each employee’s norm, and send verifiable data to payroll.
Why period-end needs its own process
Under Bulgaria’s summarised calculation of working time, commonly referred to as SIRV, the final result is not determined by one isolated month. The standard reference period is between one and four months. A longer period of up to 12 months is available only through the statutory sector or branch collective agreement route and for the designated sectors.
A month above the calendar norm does not therefore create overtime by itself. The decisive comparison is made when the full reference period closes: actual hours worked against the recalculated norm for the individual employee.
This article covers the close of an already lawfully established SIRV period. It does not cover special regimes for public servants, crews and transport, or the rules for on-call duty and standby time. SIRV is not available for employees working under an irregular working-day arrangement.
1. Lock the schedule and actual-time data
Start by reconciling the approved named work schedule with the time actually worked. Named schedules must cover the full reference period, and employees must be informed before they begin working under them. The employer must retain the schedules for at least three years after the period ends.
A schedule may be amended when headcount or the circumstances behind it change. This does not permit retrospective rewriting simply to make the schedule match recorded attendance.
As a practical control step, gather:
- the original schedule and every properly approved version;
- actual hours by day and shift;
- day and night hours;
- work on official public holidays;
- leave, sickness and other relevant absences;
- start and termination dates and changes to contractual working time.
This common dataset makes the later calculation traceable. The “locked file” is a recommended workflow, not a separate statutory form.
2. Recalculate the norm employee by employee
The starting norm is the number of calendar working days in the reference period multiplied by the employee’s contractual daily hours. It must be calculated individually because contractual hours, absences, and employment start or termination dates may differ.
For leave granted in working days, the corresponding calendar working days are removed when recalculating the norm. For temporary incapacity, maternity, and the childcare and adoption leave expressly listed in the ordinance, the hours in the approved named schedule are deducted. Do not apply one absence method to every leave category.
If contractual daily hours changed during the period, split the calculation into the relevant parts. A sound audit trail should show the inputs used and who reviewed the outcome.
3. Check night work and public holidays separately
Under SIRV, night hours are converted into day hours using the ratio between the normal day and night duration for the relevant workplace. Avoid applying a universal coefficient without checking the durations that govern the workplace.
For schedule-control purposes, conversion applies to shifts containing four or more night hours. The rules include exceptions, including reduced working time for the workplace and employment contracts exclusively for night work.
Work on an official public holiday needs a separate check. It is paid at no less than double the rate, regardless of whether overtime is identified when the reference period closes. Keep the public-holiday premium separate from the “hours above the norm” test.
4. Compare actual hours with the recalculated norm
Once the data is validated, the difference can run in either direction.
If actual hours under the schedule fall below the recalculated norm, the deficit is treated as idle time not attributable to the employee, unless it results from culpable failure to attend work. Idle time not attributable to the employee is paid at the employee’s gross remuneration. The rule also applies when employment ends before the reference period closes, for the part ending on the termination date. A shortfall should not automatically be treated as a debt owed by the employee.
If actual hours exceed the norm for the full period, the excess is overtime. Under SIRV, it carries a premium of at least 50%. Check the employment contract and any applicable collective agreement because a higher rate may apply.
Check the statutory limits as well. The ordinary annual ceiling is 150 overtime hours per employee. A sector or branch collective agreement made through the relevant statutory route may raise it to 300 hours. Bulgarian law also sets shorter-period limits and contains specific rules for protected categories.
5. Give payroll a verifiable result
A practical payroll handoff follows the same sequence:
schedule → actual hours → employee-specific recalculated norm → difference → pay and records
For each employee, the file should identify the reference-period dates, applicable schedule versions, actual hours, absences, night-work conversion, and separate flags for official public holidays and overtime. Add the applicable contractual rates and visible approval of the final result.
This is a recommended control workflow. Statutory duties include correct calculation and pay, maintaining the special overtime register, and reporting the relevant social-security data.
Declaration 1 contains separate fields for total worked hours and overtime hours. The precise allocation and any correction mechanics after a multi-month close should be confirmed by a payroll specialist for the case and against current official instructions.
Employers must report overtime worked during the calendar year to the Labour Inspectorate by 31 January of the following year. This is a separate annual obligation, not part of the reference-period reconciliation itself.
Final pre-payroll check
Before processing payroll, confirm that:
- all schedule versions are available and traceable;
- actual day, night and public-holiday hours are separated;
- the norm is recalculated for the employee and relevant absence category;
- the shortfall or excess is determined for the full period;
- public-holiday and overtime premiums have not been conflated;
- applicable limits and any higher contractual rates have been checked;
- register and declaration data are ready for separate review.
Where a special regime, collective agreement or disputed absence applies, confirm the treatment with a qualified Bulgarian payroll or employment-law specialist before processing.