2020-04-17  European Commission approves a wage subsidy scheme in Bulgaria worth BGN 1.5 billion (approx. EUR 770 million) aimed at maintaining employment in the sectors most affected by the isolation measures introduced by the pandemic caused by the pandemic. coronavirus. The scheme was approved under the State Aid Temporary Framework adopted by the Commission on 19 March 2020 and amended on 3 April 2020.

Bulgaria has informed the Commission, referring to the Temporary Framework, of a wage subsidy scheme that will allow the Bulgarian authorities to finance 60% of the wage costs (including employers' social security contributions) of enterprises which , because of the pandemic, they will cut their staff without this help. The measure is limited to undertakings active in the sectors most affected by the current public health crisis, such as retail, tourism, passenger transport, culture, sports, leisure and recreation.

The Commission found that the Bulgarian scheme complied with the Temporary Framework. In particular, the measure will offset the cost of remuneration of undertakings operating in sectors which are particularly affected by the coronavirus pandemic, provided that they commit themselves to retaining permanent staff without aid, the aid intensity being in accordance with the maximum 80% allowed by the Temporary Framework, and the aid scheme complies with the maximum duration of twelve months.

The Commission therefore concludes that this measure is necessary, appropriate and proportionate in order to overcome serious difficulties in the economy of a Member State in accordance with Article 107 (3) (b) TFEU and with the conditions set out in the Temporary Framework.

The government has also decided to take over 60% of workers' insurance with changes to the Employer Compensation Decree in order to maintain the employment of employees during a state of emergency. Under the new provisions, the amount of compensation will be 60 percent of the insurance income for the month of January 2020 and of the employer 's social security contributions payable to any employee to whom the termination or part - time regime applies.

In the case of termination of employment, employers who have been compensated should pay the full amount of the workers' remuneration and the due social security contributions for the respective month. In the case of part-time work, the employer pays the full amount of the wage, defined as full-time work, and the due social security contributions for the respective month.

According to the changes, employers from the economic activities "Driver training" and "Day care for young children (private sector)" who discontinued the work of the enterprise or part of the enterprise with their order issued on the basis of an order of a state body will be able to apply for support.

The changes will also apply to employers who have applied for compensation before the decree comes into force. The financial resources necessary for the payment of social security contributions will be provided by the Unemployment Fund of the State Social Security.