Compensation of 60% of insurable earnings during the State of emergency

  • Only applies to labor agreements.
  • Unconditional for employers, whose operations have been discontinued by order for the duration of the State of emergency.
  • For the rest of the businesses – in case of a minimum of 20% decrease in revenue compared to March 2019
BUSINESSES CATEGORIES

(discontinued by order for the duration of the State of emergency)

  • retail in shopping centres (with the exception of retail of food, medicines and cigarettes)
  • certain kinds of passenger transportation services
  • hospitality
  • restaurants and fast-service establishments, drinking establishments
  • cinemas
  • tour operators
  • organization of convention and trade shows
  • private kindergartens
  • theatres and other creative and arts activities, culture
  • sports and other entertainment and recreational activities, physical well-being activities
CONDITIONS
1) The Employer
  • is a local natural person / legal entity or a foreign legal entity engaged in business activities in the Republic of Bulgaria
  • does not receive funding for remuneration and social security contributions from the state budget, with European structural and investment funds (ESIF) or other public funds
  • should pay the full amount of the person’s remuneration for the month in question
  • does not have any outstanding public liabilities, except for those that are deferred, disbursed or secured
  • has not been declared insolvent and is not in insolvency or liquidation proceedings
  • do not terminate employment contracts on the following grounds: closure of part of the enterprise or redundancy; reduction of the workload or discontinuance of the labour activity for more than 15 working days during the period for which they are compensated
  • there is no violation of the provisions of the Labour Code established by a penal decree or court decision
2) The duration:
  • for the duration of the State of Emergency Measures Act
  • for a maximum of 3 months
3) The amount of the compensation
  • 60 % of the amount of the insurable earnings of the person for January 2020
DOCUMENTATION & PROCEDURE
1) Required documentation
  • an application form
  • Order for discontinuance of the operations during a declared State of emergency
  • Declarations for the circumstances: (i) maintaining the employment of the persons and (ii) absence of dismissals of employees and workers on the basis of Art. 328, par. 1, items 2, 3 and 4 of the Labour Code during the period for which compensations are paid
  • a list of the workers and employees
  • a bank account
  • Declaration by the employer and evidence for the decrease in revenue
2) Procedure
  • 7 working days deadline for review and performance of an official conformity check
  • Payment of the compensation is performed by the National Social Security Institute (NSSI)
Questions
  • What act will confirm or reject the application of the employer?
  • What is evidence for decrease in revenue?
  • In what order will refusals for compensation be appealed?

If you have these or other questions, please contact: Dennitsa Dimitrova, Partner & Head of KP Tax ([email protected]) and Andrey Alexandrov, Partner & Head of Employment & Social Security ([email protected]).