Flat compensation model with 60% for all companies and employees

All companies obliged to close with the State of Emergency will be supported under the 60 to 40 measure. This was announced by Minister Denitsa Sacheva at a briefing on the intentions to support the business during the crisis with COVID-19.

These are:

  1. retail trade
  2. excluding trade in motor vehicles and motorcycles
  3. land transport,
  4. passenger air transport
  5. hotels
  6. restaurants and bars
  7. drinking establishments
  8. cinemas
  9. tourist and tour operator activities
  10. organization of congresses and trade shows
  11. pre-school education involving mainly the private sector of kindergartens
  12. artistic and creative activities
  13. sports and other activities
  14. maintaining good physical condition.

Employers will be able to apply as of tomorrow at the Employment Agency. The decision will take up to 7 days. They will receive compensation within 5 days, Sacheva added.

Other companies that can hope for government assistance will be able to apply by declaring a 20% drop in sales. March will be used as a reference month. For companies established after March, 2019 there is a separate line to prove the turnover, said Sacheva.

Labor relations with workers must be concluded before the state of emergency is introduced – 13 March. There will be a public register of the supported companies. It will be published on the NSSI website. The control will be strengthened. It will be implemented by the NRA and the GIT. Checks on the veracity of the documentation will be made throughout the year. The measure will relate to workers’ insurance income, Sacheva said.

If the employer does not pay the remaining 40% of the workers’ compensation, they will also recover 60% of the state aid. ”

According to Sacheva, the measure can be applied month after month, so far its total validity period is 3 months. Also, employers will only be able to apply for a portion of their employees if they have others whose work is not hampered by a state of emergency.

“Intensive work is currently underway in the Ministry of Finance and the government on initial data on the state budget update,” Finance Minister Vladislav Goranov revealed.

“We have not discussed a change in the pension legislation related to the provision of retirement income. Our role is to preserve the ability of the state to fulfill its function,” said Vladislav Goranov.

“No one will be forced to impose this measure. We will give as much as we need for these 3 months.” he added.

We will hold another digital meeting tonight at 6.30pm to bring the budget update for the 60/40 measure. The optimistic option is that it will cost about 1 – 1.5 billion BGN. Earlier, Prime Minister Boyko Borissov told a briefing at the Council of Ministers.

Acronis Cloud Backup from SNET IT Services

Backup your data with end-to-end Encryption and Active Ransomware and Crypto-mining Protection.

30 Days FREE Trial

Accounting Services in Bulgaria

Move NOW your accounting
GET 2 MONTHS FREE

REQUEST AN OFFER