Assured financial support for employers and workers in Bulgaria

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Ivan Kokalov
Confederation of Independent Trade Unions in Bulgaria

1. Postponing the payment of profit tax for 2019 until 30 June instead of 31 March 2020.

2. Grants for SMEs of between EUR 1500–5000.

3 Payment of compensation covering 60% of insurable income and the employers' contributions for same month for each employee for whom the termination of work scheme has been applied or part-time work has been established (the 60/40 measure). This measure is unique in Europe as it preserves employment and 100% of workers' incomes. Nearly 200 000 jobs have been saved thanks to this measure. The number of newly registered unemployed –  who did not find work –  for the period March – June, totals more than 90 000.

4. Since the beginning of July, the following actions have been taken in Bulgaria to preserve employment:

  • The 60/40 measure will be extended and companies from more sectors, including the healthcare sector, will have the opportunity to apply. The jobs and incomes of about 300 000 people are expected to continue for the next three months.
  • From the beginning of July, an additional measure was launched for the sectors most affected by COVID-19: transport and tourism. This measure can be combined with the 60/40 measure, meaning that, in practice, aid for these sectors will amount to 80/20. The budget is over EUR 20 million and the funds will be paid to nearly 22 000 self-employed persons and workers for up to six months.
  • The third measure is aimed at unemployed people who will be temporarily employed full-time or part-time for a period of up to three months and it will cover the minimum wage and social security contributions made by the employer. The budget is over EUR 80 million, with EUR 25 million aimed primarily at companies in the tourism sector, including travel agencies, travel operator activities and other travel and reservation activities.

5. Three minimum wages and accruals, for two months from the time of the state of emergency and for one month after it came to an end, aimed to support 1 200 independent artists.