01.10.2021

THE 60/40 MEASURE LASTS UNTIL THE END OF THE YEAR

The National Council for Tripartite Cooperation (NCTC) adopted a Draft Decree of the Council of Ministers amending and supplementing Decree № 151 of 2020.

The measures affect enterprises with a decrease in turnover and income of 30 and 40 percent, for which support of 50 and 60 percent is provided by the state on the insurance income of the persons for the respective month and the respective insurance contributions by the employer. This was announced at a briefing after the end of today's meeting of the NCTS by Galab Donev, Chairman of the Tripartite Council, Deputy Prime Minister and Minister of Labor and Social Policy.

By the end of the year, the budget available for the "60/40" measure is BGN 250 million, as the funds are allocated in the updated state budget.

On average, about 67-73 thousand employees and workers will be supported per month under the measure "60/40". The average monthly financial resource under the measure is about BGN 63 million.

BGN 100 million are provided for the measure "Keep me plus" as the average monthly support under the measure covers 67 thousand workers and employees and self-insured persons who will be supported under this measure, informed Minister Galab Donev.

He specified that under the measure "60/40" with a drop in turnover of 30 percent, the intensity of support is 50 percent for the insurance income on which the workers are insured and respectively 50 percent of the insurance contributions for the employer. With a drop in turnover of 40 percent, the familiar design of the measure, which was in effect until the end of May, is preserved, i.e. 60 percent support for the insurance income of employees and 60 percent for insurance contributions from the employer, Donev explained.

He pointed out that both in the old design of "60/40" and in the new design with both declines, the number of companies applying for this support has hardly decreased. There is only a three percent decrease in the number of employers, and there is also no significant decrease in the number of workers receiving support.

Sectors such as restaurants and hotels stand out, which in the old design of the measure received about 13 percent of the financial resource of the aid, while in the new design of the measure they reach about 25 percent of the financial resource, which is allocated monthly to the individual sectors that receive monthly support, said Minister Donev.

Minister Donev also informed that under the decree for payment of compensations to workers and employees and to self-insured persons, insured in economic activities, for which temporary restrictions have been imposed by a state body for their implementation in the period of declared state of emergency or declared epidemic situation. The NCTC reached a consensus that the decree should be adopted with some technical notes.

It is planned to support the persons affected by the cessation of the activity of the enterprises on economic activities by order of a state body - this is the Minister of Health and the respective directors of the Regional Health Inspectorates, the Minister said.

The Council of Ministers is about to approve the proposed by the NCTC changes in the measures of the state in support of business and employees.