MEASURES TO SUPPORT EMPLOYMENT AND PAY COMPENSATION CONTINUE

10.05.2021

MEASURES TO SUPPORT EMPLOYMENT AND PAY COMPENSATION CONTINUE

Explanation from the Consultancy Center - Berkovitsa

In the conditions of slow economic recovery and continuing emergency epidemic situation, the measures to support business and to preserve the employment of employees of enterprises that have stopped working, work part-time and have reduced sales revenues have been extended.

Support for the 60 to 40 measure continues. For this purpose, amendments to Decree № 151 of the Council of Ministers of 2020 were adopted to extend the term for payment of funds for maintaining the employment of employees from 01.04. until 31.05.2021 (CMD № 93 of 18.03.2021, promulgated SG, issue 24 of 23.03.2021). The funds will continue to be paid for employees who during the period from 13.03. until 31.12.2020 they worked part-time on the grounds of Art. 138a, para. 2 of the Labor Code (LC) or have used leave on the grounds of Art. 173a of the Labor Code, as well as for workers and employees, whose work has been suspended by an order under Art. 120c of the LC.

For this purpose, the employees should have been in an employment relationship with the employer before 01.10.2020. During the additional period of application of the measure, the employers who received funds for maintaining the employment of the employees from the groups under the decree will pay amount not less than the amount of the insurance income for October 2020, and will pay the due insurance contributions for the respective month.

A favorable change has been made for the business, and employers who have proven a decrease in sales revenues in the month preceding the month of application by at least 20 percent, but compared to the average revenues for 2019 - the year before the pandemic, when they had normal turnovers and revenues, and compared to them in 2021, it is very possible that they will have a decrease, which, in turn, will entitle them to receive funds under the decree. A comparison with the previous 2020 would not be in the interest of business.

Assistance under the “Keep Me measure was also extended by three months. For this purpose, amendments to the Decree № 325 of the Council of Ministers for determining the conditions and the procedure for payment of compensations to workers and employees insured in economic activities, for which temporary restrictions have been imposed by a state body for their implementation during the period of the declared state of emergency or declared extraordinary epidemic situation.

The main changes provide for individuals to be entitled to compensation for no more than 60 days within 2020 and no more than 90 days within 2021 in which they have used unpaid leave in connection with imposed restrictions on the implementation of the activity, for which they are employed, in an act of a state body. The term of application of the measure is increased - until 30.06.2021. The changes are in force from 01.04.2021.

Persons are allowed to participate under the measure "Keep Me" only if they are employed in sectors that fall within the approved by the Minister of Labor and Social Policy List of codes of economic activities for which temporary restrictions have been introduced for carrying out activities with an act of a state body in the period of a declared state of emergency or a declared state of emergency epidemic, by a decision of the National Assembly or the Council of Ministers. The current order with the list of codes is published on the website of the Employment Agency, at:

https://www.az.government.bg/pages/zapazi-me/.

Employees should be on unpaid leave under Art. 160, para. 1 LC or Art. 173a, para. 2 of the Labor Code due to introduced temporary restrictions for carrying out the activity, specified in an act of a state body.

The Council of Ministers also adopted changes in Decision № 429 of 26.06.2020 on determining the terms and conditions for payment of compensations to self-insured persons and employers in order to maintain the employment of employees in enterprises directly affected by the state of emergency, declared with a decision of the National Assembly of 13.03.2020, amended and ext. with Decision № 982 of the Council of Ministers of 31.12.2020. The changes were adopted by Decision № 233 of the Council of Ministers of 18.03.2021. The aim is to continue the additional support for the most affected sectors and economic activities and to preserve the employment of workers. and the employees falling into them.

In line with the measure "60 to 40" the deadline for payment of funds was extended until 31.05.2021. The changes also provide for the payment of funds to be able to apply to employers who have proven a decrease in sales revenue in the month preceding the month of application, with not less than 20 per cent compared to the average income for 2019 for the established persons before June 1, 2019 and those established for the period from 01.06. until 01.12.2019. For those established during the period 01.12.2019 until 01.03.2020 and those after 01.03.2020 - compared to the average revenues for 2020. This also applies to municipal activities.

For self-employed persons - registered as freelancers and/or craftsmen, as well as persons engaged in employment as sole traders in certain sectors, and who have declared a decrease in sales revenue, the requirements are as follows:

  1. for the persons registered before 01.06.2019 - by not less than 20 per cent during the month preceding the month of submission of the application for payment of compensations, compared to the same month of the previous calendar year;
  2. for the persons entered after 01.06.2019 to 01.03.2020 - by not less than 20 per cent in the month preceding the month of submission of the application for payment of compensations, compared to the average incomes for January and February of 2020.

Due to the repeated imposition of temporary restrictive measures for carrying out activities in the sectors falling within the scope of Decision № 429 of the Council of Ministers, it is possible to receive funds for persons employed by the employer or registered as self-employed after 13.03.2020. This approach is also in line with the Council of Ministers № 151/2020, where restrictions on new employees are also not included for employees employed in the transport and hotel and restaurant sectors.

Additional and up-to-date information, answers to frequently asked questions, as well as lists of approved and disapproved employers are published daily on the website of the Employment Agency, at:

https://www.az.government.bg/pages/finansovi-stimuli-za-zapazvane-na-zaetostta/.