Extension of the 60/40 Mechanism and Amendments to the Conditions for its Application

Analysis prepared by KPMG.

The 60/40 mechanism was extended by the Council of Ministers, effective from 1st August 2021 until 31st December 2021.

The Council of Ministers adopted amendments to Decree No 151 dated 3 July 2020 on the conditions and procedure for payment of funds to employers for the purpose of maintaining employment. The amendments were published in the State Gazette, Issue No 85 dated 12 October 2021 and are effective as of 1 August 2021. 

The extension of the mechanism for December 2021 will apply provided that the European Commission resolves to extend the term of the Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak for the period following 31 December 2021.

Application terms

Employers which wish to receive funding under the mechanism have to submit the respective documents by the end of the month following the month for which they are applying. For receipt of funding for August and September 2021 the application deadline is 31 October 2021, whereas for receipt of funding for November the deadline is until 10 December 2021.

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