as at 31.03.2020
In response to the COVID-19 spread in Bulgaria the National Assembly announced state of emergency as from 13 March 2020 (the “State of Emergency”).
As part of the measures and interventions, incorporated in the new Law on the Measures and Actions during State of Emergency, Announced with a Decision of the National Assembly on 13 March 2020, the Bulgarian Government just finalized the terms and conditions for financial compensation of the Bulgarian employers during the State of Emergency*. Below is a short summary of the criteria and the terms and conditions for receiving the so-called “60/40 Compensation”.
NB: Please note that it is expected these rules to enter into force retroactively as from the first date of the State of Emergency – 13.03.2020.
The types of businesses eligible for the compensation are divided in two main categories:
1. Directly Affected Employers
This means employers who issued an order for stoppage of work of the entire enterprise or part of it as a direct result of the measures imposed by the state during the State of Emergency.
The list of these businesses is attached herein and is exhaustive. It is based on the economic activity of the employer as registered and declared before the authorities.
NB: Your accountants may confirm under which code of activity your business is registered.
In order these employers to receive the compensation, they should meet the following criteria:
2. Other Employers
Any other employers may apply for compensation, if they have issued an order for:
meet the following criteria:
NB: Your accountants may confirm under which sector your activities are announced before the authorities.
► THE 60/40 COMPENSATION ITSELF
This represents a temporary compensation – for the period of the State of Emergency but for not more than three months.
The compensation is paid by the state to the applying employer for the purposes of keeping occupation of the employees.
The total due employment remuneration and all due social security instalments are to be paid by the employer to the employees (no payment from the state to the employees is made).
If any of the circumstances declared or proved for the purposes of the compensation is not true, the compensation is to be paid back.
If the employer does not pay the rest of the total due remuneration, the compensation is to be paid back.
► COMPENSATION IS NOT PAID FOR EMPLOYEES
► AMOUNT OF THE COMPENSATION
The compensation is in the amount of 60% of the declared social security income for January 2020 for each employee falling within the applicable criteria. This means that the compensation is capped to 60% of the maximum social security threshold of BGN 3,000. Thus, if an employee receives higher salary, the compensation will not cover 60% of it in total and the employer still owes the total agreed remuneration.
In case of part-time work imposed, the amount of the compensation is payable pro-rata the not-worked time but for not more than four hours.
Further, Decree No. 55/30.03.2020 of the Council of Ministers lists all rules for determination of the social security income for January 2020 in case of absence during this month.
The information for the order, terms, documents, templates and applicable procedure for applying for compensation is available on the web page of the Employment Agency.
NB: For now, the Labour Office Directorates will accept applications until 21.04.2020.
LIST OF ACTIVITIES DIRECTLY AFFECTED BY THE STATE OF EMERGENCY MEASURES
(unofficial translation from Bulgarian language)
Code under CEA-2008 (КИД-2008)
|NAME OF THE POSITION|
|Retail without retail of motor vehicles and motorcycles*, except for retail: |
|49.3||Other passenger ground transportation|
|51.1||Passenger air transportation|
|56.1||Activity of restaurants and fast food establishments|
|56.3||Activity of beverage establishments|
|79||Travel agency and operator activity; other travel and booking activities|
|82.30||Congresses and Trade Fair Organization|
|85.10||Pre-school education (private sector)|
|90||Artistic and creative activity|
|91||Other activities in the field of culture|
|93||Sport and other recreational activities|
|96.04||Maintaining good physical condition|
|Other economic activities – for employers who stopped activity performed on the territory of separate populated territories for which anti-epidemic measures are introduced via order of state authority on the grounds of Art. 63 of the Health Act.|
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