26.11.2021
INCREASING FINANCIAL LITERACY IS OUR NATIONAL PRIORITY
"Improving the financial well-being of Bulgarian citizens by increasing financial literacy is our national priority." With these words, the Deputy Minister of Finance Monika Dimitrova-Beecher opened the Annual Meeting on Financial Literacy within the Joint Project of the Organization for Economic Cooperation and Development (OECD) and the Ministry of Finance of the Netherlands in the field of financial literacy.
According to him, Bulgaria is a participating country. Our country co-hosted the event together with the OECD and the Ministry of Finance of the Netherlands, which was held online under the title "Consumer Finance and Financial Literacy in the Digital Age - Opportunities and Challenges for Southeast Europe". In her welcome address, Deputy Minister Beecher said that the rapid development of technology and digitalisation, as well as the pandemic, have changed our lives and the way we perceive the world. "Consumers today have unlimited remote access to financial services and these opportunities have their challenges, which include the need to better address risks in the digital environment. "Digitalization and education must go hand in hand, which will allow us to be more flexible," she said. Thanks to all parties involved, the National Financial Literacy Strategy and its Action Plan (2021-2025) were adopted by the Council of Ministers earlier this year. "We know that we face the most difficult and responsible task - the effective implementation of the Strategy and measures in the Plan," said Deputy Minister Beecher.
The event was also opened by Flor-Ann Messi, Deputy Director of the OECD's Financial and Corporate Affairs Directorate and Executive Secretary of the OECD's International Financial Education Network (OECD/INFE). "Digitization is leading to a rapid change that we can call a revolution. We need to use digitalisation and digital distribution channels as tools to support many complementary goals and make financial education more efficient, flexible and tailored to the needs of citizens,” she said.
The joint project of the OECD and the Ministry of Finance of the Netherlands in the field of financial literacy aims to provide technical support for the development and implementation of effective initiatives in the field of financial education and literacy adapted to the specific needs of the participating countries. The other goal is to encourage the sharing of knowledge and good practices between beneficiaries. Bulgaria participates in the project with six other countries - Romania, Croatia, the Republic of Northern Macedonia, Montenegro, Moldova and Georgia, and the project coordinator for our country is the Ministry of Finance, to which an Interdepartmental Working Group has been formed. It includes representatives of government institutions, supervisors and non-governmental organizations responsible for the preparation and implementation of the national strategy in the field.
26.11.2021
WHAT THEY DECIDED ON THE MINIMUM WAGE, MATERNITY AND PENSIONS NEXT YEAR
The budget for 2022 must ensure that pensioners from 1 January next year will not receive a lower pension than they currently receive. From now on, the minimum wage will be determined as a percentage of the average, and the maternity benefit in the second year for 2022 will be the same as the minimum wage. The parties, which are discussing measures in the field of labor and social policy, have united around this.
The moderator of the discussion Asen Vasilev summarizes the proposals of all participants in the discussion.
From December 25, important changes enter the pension system - the percentage per year of insurance, without the so-called conversion, increases from 1.2 to 1.35. With this, the pensions will increase, but probably next year the supplement of BGN 120 will be dropped. It must be ensured that there will be no pensioner with a lower pension than the one he currently receives, all parties believe. All pensions will follow the indexation under the Swiss rule.
The parties propose to make a full analysis of the pension system within six months in order to fairly index pensions and create a new update mechanism that is sustainable over time. The proposals of the BSP for recalculation of the pensions with average insurance income for 2018 were discussed again, as well as an update every five years, which is requested by the ITN.
The minimum wage must be a percentage of the average, in accordance with the European directive, and the directive stipulates that the minimum wage be 50 percent of the average. According to the parties, this is difficult to achieve from 2022, but the goal is to achieve it by the end of the mandate. A mechanism for its determination will be developed, and the state, trade unions and employers will participate in the development.
The maximum insurance income will be increased, there must be a ceiling, but the maximum insurance income will be determined as a coefficient to the average salary, the parties decided. Linking the minimum unemployment benefit to the minimum wage after consultation with the social partners is also proposed by the political forces.
Legislative regulation of telework will be made.
The parties want motherhood in 2022 for the second year to be as much as the minimum wage. A discussion has arisen as to whether working mothers should receive the same amount in the second year as the unemployed, and the thesis of the representatives of "Democratic Bulgaria" is that the money should be the same for both working and non-working, as most children in kindergarten of working mothers from the big cities, they cannot get into either a state or a private nursery and the parents pay over BGN 700 per month for the care of the children.
The parties also united on the topic of state kindergartens and kindergartens being free for children. There will be a voucher system to support parents with unaccepted children from the age of ten months. It is also envisaged to expand the possibility for alternative care for children when there are qualified care specialists, as there is currently a problem with the lack of places to build kindergartens.
The focus of the financial resource must be on expanding the seats. Elisaveta Belobradova from "Democratic Bulgaria" pointed out that currently the mothers are planning the birth of a second child so that he can use the advantage of the first when applying for kindergarten. She warned that a caesarean section had even been performed a month earlier to include the children in the ranking, which gave them an advantage.
ITN asked the measures for the kindergartens to be in the context of the regional policy, not to concentrate families with children only in Sofia.
The scope of energy assistance will be expanded, energy poverty will be defined. It is expected that the possibility for deferred payment of bills will be introduced. A minimum wage will also be given to the self-employed in areas unable to work due to restrictive measures. Antiquity measures to help employers will continue next year.
26.11.2021
THEY LAUNCH CHEAP LOANS FOR RURAL COMPANIES
The Fund of Funds has entered into an agreement with First Investment Bank (Fibank) for the management of the financial instrument "Rural Financing".
The funds are provided by the Rural Development Program 2014-2020 (RDP), through the European Agricultural Fund for Rural Development and amount to BGN 38 million. The financial institution selected by the Fund of Funds is expected to add as much private capital to the public resource, so that the total amount of loans will exceed BGN 70 million.
The instrument is aimed at farmers and small and medium-sized enterprises developing business in rural areas, who will have the opportunity to benefit from funding under the instrument until 31 December 2023.
The loans will be provided for agricultural and non-agricultural activities in rural areas to increase the competitiveness of the agricultural sector, as well as to promote social inclusion and support for the sustainable development of agricultural holdings.
The instrument will cover both new stand-alone investments and grants to co-finance projects supported by grants with the following funding characteristics:
- low-interest loans in EUR or BGN under favorable conditions for investment purposes and working capital, which complement the investment and are related to it;
- amount of investment loans up to BGN 2 million. Complementary working capital financing up to the higher of the following values: 30% of the total investment to the respective final recipient or BGN 391,166, in compliance with the requirements and restrictions for state aid;
- repayment period up to 10 years;
- low interest rates on the financing, as no interest and management fee will be charged on the RDP funds;
- low requirement for deductible of the final recipient.
After the signing, the product will be structured under the Rural Financing Instrument by First Investment Bank and its active supply to final recipients will start.
25.11.2021
SEE HOW TO CALCULATE HOW MUCH YOU GET IN AN HOUR OF WORK
What is the total cost per hour or month worked? The slips that workers receive at the end of the month most often indicate the net salary, and in their books the employers include their part of the insurances, which form the total labor costs.
Apart from them, other factors play a role on the final salary of the employees and the actual full labor costs - hospital, emergency shifts, food vouchers. It is these factors that the new calculator of real wages and real labor costs, developed by the Institute for Market Economics (IME) and available on the website http://cenanarabotnika.org/, adds to the account.
The calculator was developed in the context of an international initiative implemented by the IME together with non-governmental organizations from Slovakia (INESS), the Czech Republic (Liberal Institute) and Poland (FOR), with a common approach and methodology that reflects the specifics of local labor legislation and regulations. The work is supported by the Friedrich Naumann Foundation for Freedom, according to the Institute for Market Economics.
The "Employee Cost" calculations take into account all expected factors of the employer's gross salary and expenses - pension, health and other social security contributions, as well as income taxes. To these are added several other factors, which mainly concern the time worked - night work, work on Saturdays and Sundays or on public holidays, for which multipliers are applied to the basic hourly wage.
The calculator also takes into account cases in which the employer finances the lunch (or in general the meals) of its employees, as well as the used sick leave and the additional days of paid leave outside the ones provided by the labor legislation. Account is also taken of cases where employees receive food vouchers - a common practice of supplementing income that remains outside the scope of taxation. At this stage, the calculations are valid only for the third category of labor, which includes most workers in Bulgaria.
Of particular importance here is the difference between the final hourly rate and the announced hourly wage - only with the addition of a few night and holiday shifts, a few days of paid leave above the minimum and food vouchers, the difference between the announced hourly wage and the final hourly rate becomes almost double.
Why is this calculator useful?
First, it clarifies the total labor costs and thus allows for a realistic assessment of the cost of labor. Also, activating the calculator at the beginning of a government's term will easily show the direction of its policies - any change that increases the cost of rent will turn on the "red light" for all observers.
Clarity about the full cost of labor will also help to form an opinion in the discussions on the adoption of the state budget, but also in any legislative initiative related to labor or social security legislation. The calculator will also be useful for immediate assessment of the effect of proposals for regulatory changes of trade unions and employers' organizations.
25.11.2021
THE HEATING AID WILL BE PAID AT THE POST OFFICES
From 09.12.2021 to 23.12.2021 in the post offices of Bulgarian Posts EAD a one-time financial aid for heating of persons and families from vulnerable groups will be paid.
The funds are paid to overcome the consequences of rising fuel prices and the epidemic emergency.
Eligible persons can receive assistance at post offices only during this period of the current year. Its receipt cannot be postponed for 2022.
25.11.2021
THE EIGHTH EDITION OF THE "PROFESSION BAZAAR" WILL PRESENT 30 PROFESSIONS WITH A FUTURE FROM 15 LEADING COMPANIES
The eighth edition of the "Bazaar of Professions" will take place on November 26 and 27. For the second year in a row, the iconic career guidance event, organized by the Bulgarian Network of the UN Global Compact, will take place online. There are 15 companies that have accepted the challenge to present fascinating key professions for them and for the future, the organizers announced.
The event will strengthen its position at the largest exhibition for career guidance and will give children and young people between 10 and 18 years, their parents and teachers from all over the country, to get acquainted with a wide range of professions and prospects for realization. "Profession Bazaar" will include meetings with experts visiting a studio, a kaleidoscope of video tours of the participating companies and discussion panels on the future of the professions, with the participation of established specialists. The interviews and discussions will be led by young journalists from TeenStation.
Among the palette of professions in the program is a kind of "parent meeting". It will be dedicated to "Career support for students - how and when to help without interruption?", With the participation of Gergana Rakovska from the Business Foundation for Education.
The professions in information technologies are becoming more and more important for every sphere of our economy and life. The professions of cybersecurity specialist, business intelligence, cloud engineer and video game developer will be presented in a discussion between experts. Virtual reality and robotics programmers will compare their professional knowledge and skills, charting a path for anyone who wants to dedicate themselves to the profession.
Among the most anticipated meetings is the one with the profession of science communicator, as well as with professions in the field of mining and energy - a specialist in energy efficiency and an automation engineer.
The young people will also get acquainted with the professionals who study and care for the earth - geologist and ecologist, they will understand why the role of the energy manager is key to the functioning of each store. Each expert needs specialists in marketing, sales, supply and acquisitors, will take their rightful place with a special panel.
The panel "From people to people" provides a meeting with those important professionals whose professions are of paramount importance for our lives, but are not always in the spotlight. A pharmacist, teacher and volunteer and donation specialist will share the challenges and satisfaction of their work. Young people will look behind the creation of news and will be able to ask questions to journalists. Creative professions, such as actor, writer and cosplayer, also have a place in the Professions Bazaar.
For the first time during the event there will be a conversation about entrepreneurship. In the panel discussion "The future belongs to the entrepreneurs" Ognyan Trayanov, chairman of the Bulgarian Network of the UN Global Compact, will present what it is like to be an entrepreneur.
25.11.2021
SEIZURE OF SALARIES AND PENSIONS: WHAT INCOME IS SAVED FROM SEIZURE?
This question worries more and more people, especially in times of crisis.
Salaries up to BGN 840 can no longer be seized due to debts and people will take them in full. The reason for this is the increase of the minimum wage to BGN 650 from January 1, 2021.
According to the Code of Civil Procedure (CPC), in the case of compulsory collection of overdue loans and unpaid bills for telephone, heating, etc., from the debtor's earnings and from the pension received by him, the creditors must leave him an amount equal to of the minimum wage. The debtor must have a minimum wage after taxes and insurance, according to the Civil Procedure Code. With a salary of BGN 840 after withholding taxes and social security contributions, the debtor must receive BGN 651.82, i.e. creditors can now take only BGN 1.82 from him.
Pensions up to BGN 650 will also not be seized, according to the Civil Procedure Code and the Tax and Social Security Procedure Code. Creditors cannot touch lower wages and pensions either. If the income is paid into a bank account, the banks must allow the debtor to withdraw up to the minimum wage (BGN 650) per month.
If the debtor's monthly income, after paying taxes and social security contributions, is between the minimum wage and twice its amount (from BGN 650 to BGN 1,300), debt collectors can take 1/3 of his income, if he is childless, and 1/4 if he has dependent children. If, after paying taxes, the debtor takes between twice the minimum wage and four times its amount (from BGN 1,300 to BGN 2,600), creditors can collect 1/2 of his income if he is childless, and 1/3 if is with children.
If the debtor's monthly remuneration after payment of taxes is more than four times the minimum wage (over BGN 2,600), creditors may take the excess over twice the minimum wage (BGN 1,300), if without children, and the excess over twice and a half of the minimum wage (BGN 1,625), if he has children to support.
Some personal belongings cannot be taken from the debtor. These include "teaching aids, including books and musical instruments, the use of which is necessary for the general and vocational training of the debtor and his family members". This means that if the child is learning remotely, they cannot take the family laptop he is using.
What else can't they take from us?
Debt collectors cannot take the debtor's refrigerator, stove and washing machine. The list of personal belongings against which enforcement cannot be directed due to debts has been determined by the Council of Ministers.
Among them are used shoes and underwear, some clothes, one bed for each member of the family, one double wardrobe, kitchen buffet, tables and chairs, ordinary household and kitchen utensils and dishes, a telephone and a radio.
Most often, private bailiffs take TVs, mobile phones and jewelry from debtors. These items are not protected by law and are the easiest to sell. Their pets, if they are not kept for sale, baby food and accessories cannot be taken from the debtors.
24.11.2021
HOW MUCH DOES THE EU GIVE US TO DEAL WITH THE EFFECTS OF THE PANDEMIC?
For the next year, Bulgaria receives 139,651,309 euros from the EU budget under the fund intended for overcoming the consequences of the pandemic. This is shown by data presented today by the European Commission.
The EC is allocating about 11 billion euros at current prices to EU countries, and the funds will be used for economic recovery measures, to improve health systems, to support the most vulnerable groups. The Commission expects the funds to be channeled in favor of digitalisation and the transition to a green economy.
The funds are allocated in two parts, taking into account the impact of the pandemic, the commission said in a statement. The distribution is based on data on GDP, unemployment and youth unemployment in individual countries.
The Commission notes that in Bulgaria, staff fighting the pandemic on the front lines have received additional remuneration from the budget, and the elderly and people with disabilities receive health and social services at home. The EU has set up a budget fund with additional funding of 50.6 billion euros to be used by the end of 2023.
The purpose of the fund is to help the economic and social recovery from the pandemic by encouraging the effects of the crisis and the resilience of health systems, businesses and support for the most vulnerable groups.
For this year, the fund has about 40 billion euros and over 90 percent of these funds are allocated for investment programs. The funding was used as a bridge between the emergency measures taken at the beginning of the crisis and overcoming the long-term effects of the pandemic, the EC explained.
24.11.2021
THE UNEMPLOYED EXCEEDED 250,000 PEOPLE A YEAR
The newly registered unemployed across the country for the period from the end of December 2020 to November 21 exceeded 250,000 people.
For the same period, just over 206,000 people were employed through employment offices. This is shown by the latest data from the specialized monitoring of the National Statistical Institute and the Employment Agency due to the Covid-19 pandemic.
In the last observed week from November 15 to 21, the newly registered unemployed in the country are 5,241 people and are significantly more than the 2,869 people who started working. For this period the largest is the predominance of those registered in the labor offices over those employed in the districts of Blagoevgrad, Burgas, Vidin, Vratsa, Kyustendil, Stara Zagora and Haskovo. In many places the difference is more than three times in favor of the newly registered.
Social experts recall that from December 2019 to December 2020, a little over 418 thousand people were registered in the labor offices, and 249,380 started working.
24.11.2021
THEY EXTENDED THE EMERGENCY EPIDEMIC UNTIL MARCH 31, 2022
The Council of Ministers extended the term of the declared emergency epidemic until March 31, 2022. Until today, it was planned to continue until November 30, 2021.
"The spread of COVID-19 in the country marks the intensive development of another pandemic wave. All districts of the country are affected by the new coronavirus, and in 93% of them the 14-day morbidity is over 500 per 100,000 population (in 8 of which the indicator exceeds 1,000 new cases per 100,000 population). Cases of COVID-19 are diagnosed in people of all ages. A significant increase in morbidity is observed in children and young people (20-29 years). The number of hospitalized persons is also increasing", read the reasons for the decision.
To extend the emergency, the government has also taken into account that the vaccination coverage in the country is 25.53% and is far from the EU's target of 70% vaccinated. "This contributes to the registered high levels of morbidity among unvaccinated individuals, who represent over 85% of all persons infected with SARS-CoV-2," said the Council of Ministers.
He points out that the application of health requirements upon entry into the country by the border health control authorities should continue, as well as the introduction of restrictions on access to the country, which will help reduce the likelihood of import and subsequent distribution of new options in our country.
