04.01.2022
BGN 60 MILLION IN SUPPORT OF TOURISM IS PROVIDED BY BDB
The Bulgarian Development Bank provides BGN 60 million. through a new tourism support program.
The money is intended for micro, small and medium enterprises in the hotel and restaurant sector, which are among the most affected by Covid-19 - the crisis. Those affected by the pandemic will be able to apply for a loan, and the repayment period will be four years.
The program will provide liquidity assistance to companies, and their liabilities will be refinanced.
The credit institution and the line ministry will sign a Memorandum of Cooperation. The document provides support for companies in the hotel and restaurant industry.
The event was attended by the Ministers of Tourism and Innovation Hristo Prodanov and Daniel Lorer, as well as the executive directors of the Bulgarian Development Bank, Vladimir Georgiev and Zhivko Todorov.
"We all know that tourism was the most affected sector. Commercial banks distrust the Tourism sector and that is why during the coalition negotiations we decided to create a special product for the tourism business. We have already signed this product today ", said the Minister of Tourism Hristo Prodanov.
"Today we start the new year with a vivid example of what the Bulgarian Development Bank will be like from now on - support for difficult businesses and start-ups," said Daniel Lorer, Minister of Innovation and Growth.
04.01.2022
CHANGES IN BULSTAT ARE IN FORCE TODAY
The amendment to the BULSTAT Register Act enters into force today. The BULSTAT codes of the natural persons, which coincide with their Unified Civil Number and contain 10 characters, will be converted into a code with 9 characters.
The change is in line with Regulation (EU) 2016/679 of the European Parliament on the protection of individuals with regard to the processing of personal data (GDPR) and affects more than 300,000 people in Bulgaria.
The code change is automatic and does not require users to submit documents or applications. Information on the "old-new code" link will be available on the official website of the BULSTAT register, "Information" section.
If you have a fiscal device with the old registration, after the change you have to register it again with the NRA with the new data.
04.01.2022
SUPERSOCIAL THINKING IN 2021
In the coming 2021, social policy was rehabilitated; because of the elections, all political parties suddenly started to think supersocially, because you can't go and want national love and turn your back on social policy. This was good because serious issues were raised, the director of the Balkan Institute for Labor and Social Policy Ivan Neykov told BTA. Neikov was asked to comment on what happened in 2021 in the thematic area of the Institute.
"The icing on the cake is the update of pensions, which was done at the end of the year - something that has been expected for a very long time.
The mistake - we have lost the line between social security and assistance
According to Ivan Neykov, the wrong step during the year is that with the policies towards pensioners we have lost the border between social security and social assistance. "We have started to provide benefits as a pension - whether we call them covid supplements, whether - support to the poverty line is not so important, but it blurs the line between two completely different systems," said the expert.
In the social security system the human contribution is important in terms of the amount of the pension, while in social assistance the human needs are leading - there is no contribution, there is a matter of public support, said the director of the Balkan Institute of Labor and Social Policy. According to Neikov, this mistake continues to exist, carried over into the policies of 2022 - we will again give equal covid supplements. He believes that the task of not blurring the boundaries between the two systems will continue to be solved in 2022, hopefully not in 2023, because "many people have a hard time understanding one of the basic laws in the social sphere - that it is very easy to give, but it is very difficult to stop what you have given, even when you have given it wrong."
Covid supplements do not replace the lack of social services and do not give a better life
"We decided that it is enough for the pensioners to raise their pensions in order to lead a better quality of life. What about the fact that we will give BGN 60-70 extra to one person in a small village where there is no one to give him the services, which he needs?", commented Ivan Neykov.
According to him, the biggest problem in the social sphere is the lack of services. There must be a completely different policy to encourage the provision of services, the expert said. According to Neikov, the politicians did not ask the elderly what services they need, but gave them BGN 50-100 more, telling them that they would live better that way, which, according to him, is far from the case.
Employee income
According to Ivan Neykov, different industries reacted differently during the crisis - in closed or limited businesses people lost income, but for some businesses this situation was a real revival - in online commerce, the IT industry. It is impossible to stigmatize the year that it was infinitely bad or infinitely good - there were different conditions for different industries, Neykov said.
Imposing policies in 2022
We have forgotten people with disabilities, we must return them to the labor market, said Ivan Neykov. According to him, one of the most serious problems facing the new leadership of the Ministry of Labor and Social Policy (MLSP) will be how to change the system for assessing working capacity. The big "white spot" in the last ten years in MLSP policies is that labor has been pushed into the corner, said Ivan Neykov in response to a question about how working people were supported. According to him, there are dozens of issues that have accumulated related to labor legislation. They need to be resolved, but we are constantly postponing them, he said. According to Neikov, one of them is related to the work of people with disabilities.
More than 100,000 people with disabilities can enter the labor market
Research by the Balkan Institute for Labor and Social Policy shows that more than 100,000 people with disabilities can be very active in the labor market and their inclusion is imperative because of their social inclusion and employers' labor needs. It sounds very theoretical, but it is important both financially and socially, because the current system is aimed at this - one goes to the TEMC to receive a pension, this is the goal, while the real goal of all industrialized countries is: when go to the performance appraisal system, to help you understand what is what you can do, not what you can not do, said the expert. In this case, these people are much more useful for themselves, for society and for their loved ones, because we are helping people to work and earn income, not just a pension. This is a huge challenge, which I hope the new leadership will have the courage to meet," Neykov said.
The Ministry of Labor and Social Policy must also answer the question of what we need to regulate in a new way and how to provide social services to people who need them, Neykov said.
The pandemic restored the contacts of the Bulgarians in the close family circle
Asked whether the pandemic has produced more social marginalization in Bulgaria, Neykov said that the pandemic in our country has a different effect, we can not talk about social marginalization, because if the pandemic has reduced broad social contacts, at the same time increased social contacts in more small circles, in the family. "The Bulgarian feels much better when he is with his closest ones, with his friends, with his family, when he hears more from his relatives, sees them. From this point of view there was nothing scary in 2021," he added.
04.01.2022
WHEN TO RELAX: HEALTHY ALTERNATIVES TO ALCOHOL
In this unprecedented era of blockage and social distancing, alcohol has become a major coping tool for many people.
It may not be surprising, but it can change your life almost as much as a pandemic. Like other substances, it can make us feel good right now, but the long-term effects are very serious.
Here are some healthy non-alcoholic alternatives to alcohol.
Find the missing pieces
According to Marcel Danesi, a professor at the University of Toronto, arranging puzzles brings order to chaos, which gives us a sense of control. Let's face it, things seem very, very out of control right now.
Puzzles distract from the cluttered real world and are a way to make the mind and body work in tandem. When your head and hands put the pieces together, confusion and uncertainty remain in the background.
If you don't like puzzles, try coloring books for adults (there are even pandemic ones).
Practice meditation
If you thought meditation meant sitting on the floor for hours while your legs were bent, think again. A study published in 2019 in Behavioral Brain Research found that just 13 minutes of meditation a day for eight weeks boosts mood while reducing anxiety. If 13 minutes is too much, try 10 minutes or even five.
Breathe
Close your eyes and take a deep, slow breath. Exhale slowly and release the tension in your shoulders. Then take two slower, relaxing breaths. There are also variations on the theme: with your eyes still closed, imagine your partner, friend, loved one or parent smiling at you.
You can also recall the nice things they say and do about you and smile back at them. Or you can just imagine this warmth and kindness as a radiance around them. Positive affirmations take less than a minute, and our thoughts can significantly affect our mood and views.
Look at your food
Literally. Alcohol is not the only supposed "quick fix" to pandemic depression. Many of us also reach for food. And not everything is healthy, so think of other options.
Try to make your food meaningful - taste, texture, crunchy or creamy? Think about taste. Is it salty or sweet? This is one way to be careful and disconnect from stressful thoughts.
Enjoy the sun
You can do this by walking or just sitting in the sun. Sunlight, in fact, stimulates the receptors on the back of the retina, which help release hormones and help us regulate sleep patterns.
Sunlight triggers the release of serotonin (the hormone of good mood) and triggers the synthesis of vitamin D, which can help prevent osteoporosis. Of course, always enjoy the sun in combination with a broad-spectrum sunscreen.
Have a "dry" meeting at Zoom
There are other things to do in Zoom besides work. Play, cook, watch a movie together. The main goal is to maintain social connections that are important for our health. Loneliness is associated with high blood pressure, heart disease, infections and cognitive problems. It may be twice as difficult to keep in touch during a pandemic, but there are creative ways to do it.
Turn off notifications on your phone
It is important that we all keep up with current information, but you cannot follow it non-stop. Limit your time on social media and take the time to choose reliable sources of news.
04.01.2022
NEW DEADLINES FOR TRANSFERRING THE SECOND PENSION TO THE NATIONAL SOCIAL SECURITY INSTITUTE
From the beginning of this year, new deadlines for the transfer of the second pension to the National Social Security Institute come into force.
From January 1, 2022 to December 31, 2025 a person will be able to change his insurance up to 1 year before reaching retirement age under Art. 68, para. 1 of CSR.
From 1 January 2026 to 31 December 2030 the term is extended to 2 years. From 1 January 2031 to 31 December 2035 it becomes 3 years, from 1 January 2036 to 31 December 2037 - 4 and after January 1, 2038 - 5 years
At the end of June 2021, another postponement for the transfer of the insurance for a second pension to the National Social Security Institute expired. This opportunity was given to people who missed the deadline to give up private pension funds.
It envisages that Bulgarians who until June 30, 2021 inclusive have less than 5 years until retirement age for the third category of work and who have not been granted a one-time pension, by June 30, 2021 to exercise the right of their choice to be insured only in the NSSI.
Everyone can check the pension they will receive through the NSSI electronic calculator, through the personal identification code (NSSI PIC).
04.01.2022
10 TIPS WHEN INSURING FOR A SUPPLEMENTARY PENSION
10 tips are given by the experts of the Financial Supervision Commission for people when they are insured for a second pension.
- It is good to be familiar with the pension insurance system in Bulgaria.
- The care for our security in antiquities is becoming more and more our concern, not only the state.
If years ago we relied on the state for our future pension, now the responsibility for what pension we will receive is ours. A number of factors, including demographic, have led to the need to supplement the existing model of pension insurance, based on the so-called solidarity principle (pensions are paid from the collected insurance contributions to employees).
With the introduction of the supplementary pension insurance, based on the so-called capital principle, the aim is through the supplementary pension that the future pensioners can count on an income with which to maintain their usual standard of living. It is good to be familiar with the pension insurance system in Bulgaria, explain the experts from the FSC.
- Do not let someone else make a choice for you when the obligation to insure arises for the first time, for example, when starting a first job alone and in time to choose a universal pension fund. Choose a pension fund in which to insure yourself, up to 3 months after the initial start of work - under an employment contract, under a civil contract or as a self-insured person. If you do not make your choice within the specified period, you will be officially assigned to one of the funds operating in the insurance market. Choosing a pension fund is an important decision, so it is good to carefully consider where to insure.
- Before concluding a contract with your chosen pension insurance company, carefully read the rules for the organization and operation of the fund and read the insurance contract offered by the company.
The regulations of all pension funds managed by the respective pension insurance companies can be found on the FSC website, under the heading “Registers and references” -> “Electronic register” -> “Pension funds”. You can request a sample contract from the insurance intermediary or an employee of a pension insurance company - they are obliged to provide it to you. You can sign a contract directly in the offices of the company of your choice or through an insurance intermediary, but by submitting a notarized application.
- Insure for a pension on your real income!
The amount of the pension you will receive depends mainly on what income you have been insured for during your working career. You cannot count on a high pension if you have been insured on the minimum wage most of the time.
- You should know that with the supplementary pension insurance (based on the capital principle) you take investment risk.
As the funds in your individual account are invested in securities, bank deposits and real estate, the value of a share in the pension fund depends directly on the assessment of the fair value of these assets. Currently, it can both increase and decrease. Reasonable investment leads to an increase in the funds of the insured, but their constant growth is not guaranteed. Under the capital principle of insurance, entrusting your funds to a pension fund, you bear the investment risk yourself.
- Take an interest in your money and how it is managed!
Although at the moment you may perceive pension insurance as an additional financial burden, remember that your old-age security largely depends on it. The money you insure is yours and it is important how it is managed. Therefore, it is prudent to at least carefully review the information from the annual statement of your individual account. You should receive it in the mail every year until the end of May. From the annual statement you can find out what amount has been accumulated on the account (your account), what income has been distributed, what fees and deductions have been collected.
- The profitability of the pension fund is an important indicator of how and to what extent the funds of the insured are managed.
But you should know that the results achieved are not always a guide for future ones. This applies to both positive and negative returns.
In principle, the return is calculated for a certain period using the values of one unit of the given pension fund at the beginning and at the end of this period. The funds in the universal, professional and voluntary fund are managed separately and the profitability is different. Pension insurance is a long-term investment that balances market fluctuations. Therefore, when, for example, researching or comparing the profitability of a pension fund, it is good to use longer periods as a basis. You can check the profitability through the FSC website or through the websites of the pension companies.
- Carefully consider the decision to transfer to a new pension fund!
If you are not satisfied with the pension insurance company and the fund in which you are insured, you have the right to transfer to a new one two years after the initial conclusion of the contract and every year after this period. You should proceed with this procedure after you have carefully considered all the pros and cons. For example, if the return on your pension fund this year is less than another fund, this is not always a good reason to transfer. The investment results achieved in the past are not a sure guide for future results and should not be assessed in the short term. You should know that the fee for transferring from fund to fund has been dropped.
- Contributing to a voluntary pension fund is a good way to take care of your future!
Caring for our future and financial security is increasingly our responsibility, not just the state's. We cannot count on the fact that after we retire, we will receive from the state a pension sufficient for our needs. That is why, while we are still active, it is good to think about the time when we will retire.
Financial advisers advise that voluntary pension insurance (the rest is mandatory by law) should start at the beginning of one's career. Adherence to the principle of "less but regularly" and for a long time usually gives good results.
Not to be overlooked is the fact that when you are insured in a voluntary pension fund, you can use tax benefits. Personal contributions for additional voluntary pension insurance in the amount of up to 10% of the monthly or annual tax base are not subject to taxation.
30.12.2021
THE MEASURE FOR MAINTAINING EMPLOYMENT 60/40 IS EXTENDED BY TWO MONTHS
Employers will receive funds from the state to maintain the employment of workers in the economic activities affected by Kovid-19 in the first two months of 2022. This was decided by the government with the adoption of amendments to Decree № 151 of the Council of Ministers in 2020, in which the conditions and the order for their payment are determined.
Funds will continue to be paid for employees who during the period from March 13 to December 31, 2020 worked part-time, used leave under Art. 173a of the Labor Code or their work has been suspended due to temporary restrictions on activities.
Companies established before January 1, 2020, will be able to receive from the state 60 percent of the insurance income of employees for October 2021 and from insurance contributions at the expense of the employer. To be eligible, their sales revenue during the month for which they apply for compensation must have decreased by at least 40% compared to the average monthly revenue for 2019. In the event that the decline is not less than 30%, the support from the state will be 50 percent of the insurance income for October 2021 and the insurance contributions at the expense of the employer.
Companies established after January 1, 2020 will be entitled to funds of 60 percent of the insurance income of employees for October 2021 and the insurance contributions at the expense of the employer, if their income from sales in the month for which apply for support have decreased by at least 40% compared to the average monthly income for 2020. Given that the reduction is not less than 30% compared to the average monthly income for 2020, the state will support them by 50 per cent of the insurance income for October 2021 and of the insurance contributions at the expense of the employer.
Employers who have received funds to maintain the employment of employees are required to pay wages in an amount not less than the amount of insurance income for October 2021 and to pay due social security contributions for the month.
The funds will be transferred to the respective employer by bank transfer from the National Social Security Institute. The decree enters into force on January 1, 2022.
30.12.2021
BGN 1.6 BILLION HAVE BEEN PAID TO 13,000 COMPANIES UNDER THE 60/40 MEASURE
Since the start of the so-called measure "60/40" so far over BGN 1.6 billion have been paid, according to data from an analysis of experts from the National Social Security Institute (NSSI). The analysis was published in the latest NSSI newsletter, and the document contains data up to date as of December 9, 2021.
The measure was launched in April 2020 and is currently set for the end of 2021.
For at least one month, a total of 13.4 thousand employers and 325.5 thousand employees took part in the measure. The four sectors with the largest share of disbursements are manufacturing (41.6 per cent), hotels and restaurants (14.6 per cent), trade, repair of motor vehicles and motorcycles (10.5 per cent), transport, warehousing and post offices (9.5 percent).
Nearly 82% of all retained jobs and nearly 70% of employers who participated in the measure for at least one month are concentrated in these sectors, the analysis shows.
The regional view shows that about 68% of the funds are concentrated in five areas. These are Sofia-city (36.6 per cent), Stara Zagora (12.8 per cent), Plovdiv (6.6 per cent), Varna (6.2 per cent) and Burgas (5.5 per cent), which are also the areas with the largest population and with the best economic indicators and the state of the labor market.
The largest share of the amount was received by enterprises with 250 and more insured. These are the employers who received support for maintaining the largest number of jobs (36.5 percent). Enterprises with up to 9 insured during the month of participation in the measure account for 56.6 percent of all employers who participated in the measure for at least one month.
The average number of months of participation in the measure is 7.9 for employers and 7 for employees. The distribution by number of months shows that just under half of both employers and employees participated for a period of no more than 5 months.
The distribution of participants by gender shows almost equal shares of men and women. By age groups, employees between the ages of 40 and 54 predominate, the analysis says.
29.12.2021
THE NUMBER OF UNEMPLOYED THIS YEAR IS NEARLY 145,000 LESS
The newly registered unemployed in the labor offices across the country since the beginning of the year are nearly 145,000 fewer people than in 2020. This is shown by the data from the specialized monitoring of the National Statistical Institute and the Employment Agency on the labor market.
Surveillance data show that from 28 December 2020 to 19 December 2021 the newly registered unemployed were just over 273 thousand people, and from the end of December 2019 to December 2020 418 thousand people. At the same time, 249,220,000 people started working through employment offices.
In the last week observed so far, December 13-19, 2021, the trend that began in the summer, the newly registered unemployed to be more than those who started work, continues. They are 4440 and 2800 people respectively.
However, the second year of the pandemic shows an improvement in the labor market situation compared to 2020.
The chief expert on the labor market in CITUB Atanaska Todorova commented:
"The initial shock of the pandemic and the stress in employers and people who were in precarious jobs of registering as unemployed and earning a monthly income is gone in the second year of the pandemic. The people themselves, the business itself, the state is already somehow acquainted with what is happening in the labor market, this cycle of closing and opening businesses and the measures, of course, that are being taken.
29.12.2021
WILL THERE BE A SINGLE MINIMUM WAGE IN EUROPE?
MEPs have approved a mandate to start negotiations on a directive that will guarantee all workers in the EU a fair and adequate minimum wage. The project aims to set minimum requirements to ensure an income that enables a decent standard of living for workers and their families.
Parliament calls for the scope of collective bargaining to be strengthened and extended, obliging Member States in which less than 80% of workers are covered by these agreements to take active steps to promote this instrument.
According to one of the proposals, the minimum wage should be equal to 50% of the average wage for the country. For example - if for the third quarter in Bulgaria the average salary is estimated at BGN 1520, the minimum salary according to European rules should be around BGN 760 per month. At the moment it is BGN 650. The CITUB supports the European proposals. CITUB President Plamen Dimitrov commented:
"At the end of 2025, we expect to reach 67% of the average European income, now we are at about 55%. This means that the minimum wage should grow by about BGN 100 - 120 per year."
However, employers want each country to decide for itself, because there are enough national peculiarities that such a decision must take into account. The proposal of both Europe and CITUB the minimum wage is half of the average for the country and Stoyan Panchev from the Expert Club for Economics and Politics does not like:
"The minimum wage has a direct effect on the average wage. Linking it to another internal referral mechanism is a big mistake and could be an artificial supply to the wages themselves."
Ivan Neykov, director of the Balkan Institute for Labor and Social Policy, commented that although the EU is one of the richest regions in the world, 95 million Europeans live at risk of poverty:
"The social sphere is the sphere of shared competence of the EU, namely each country decides for itself and in some cases the EU could do something, ie have some powers to create regulations. A purely managerial European minimum wage would it had to be done in stages, not all at once."
For more than 15 years, the European Union has been looking for ways to harmonize minimum wages in the Member States, trying to find a balance between protecting workers, respecting the principles of competition and social justice. The European Parliament has given the green light to start negotiations with the Council on a directive that will guarantee all workers in the EU a fair and adequate minimum wage (MW). The regulation is expected to be adopted in the second half of next year.
