26.03.2021

REQUESTS FROM EMPLOYERS FOR SUPPORT IN HIRING THE UNEMPLOYED ARE ACCEPTED

The acceptance of applications from employers who want to receive financial support in hiring the unemployed has begun, the Employment Agency announced.

Employers can apply to employment offices across the country until April 2, inclusive, to enjoy preferences under various employment and training incentives.

Financial support is provided under this year's National Employment Action Plan, which provides for employment subsidies for at least 1,965 newly hired unemployed and more than 200 mentors.

It is envisaged to pay monthly up to BGN 630 for salary and due social security contributions to each unemployed person for length of service or apprenticeship, or who has been staying at the Labor Office for more than six months under the age of 24 or over the age of 50. and lower education, unemployed mothers with children under five and other vulnerable groups.

Incentives offer options for both full-time and part-time work. The duration of the provided employment is different in the different measures and varies from 3 to 12 months.

Outside the started procedure, employers can apply for other preferences and financial resources for employment of certain groups of unemployed, as well as for conducting vocational training and training in key competencies of employees in micro, small and medium enterprises.

25.03.2021

THE STEPS FOR APPLYING FOR THE NEW DESIGN OF THE MEASURE "KEEP ME" HAVE BECOME CLEAR

The government has allocated an additional BGN 24 million and 600 thousand under the "Keep me" measure, which compensates workers in the economic sectors closed due to the pandemic.

In connection with an order of the Minister of Health for the introduction of temporary anti-epidemic measures for the period from 22.03.2021 to 31.03.2021, the Employment Agency informs all employers, workers and employees applying for the project "Keep me" about what need to do in the 10 days of lockdown.

Employers who have already submitted an Application for payment of compensation, have been approved and wish their employees to continue receiving compensation, do not submit a new Application. Employers deposit the following package of documents with the relevant Labor Office Directorate:

  • Appendix 8 “Declaration for absence or presence of changes” (sample admission after 01.01.2021) for reporting the respective month;
  • Appendix 3 “List” (sample admission after 01.01.2021) - for the respective month. The list should be signed with QES or on paper by the employer or an authorized representative of the employer (with a power of attorney attached), and must be submitted in electronic format (excel format);
  • Annex 9 “Participation Cards” for the new period for all persons listed in Annex 3 “List”;
  • Appendix 10 “Table for aggregation of information for participants”.

Employers who submit for the first time an Application for payment of compensations for the current period or for a previous period shall submit to the respective directorate "Labor Office" the following package of documents:

  • Appendix 1 - Application - declaration (acceptance sample after 01.01.2021);
  • Appendix 2 - Declaration by an employee (sample admission after 01.01.2021);
  • Appendix 3 - List (sample admission after 01.01.2021) - the list should be signed with QES or on paper by the employer or an authorized representative of the employer (with a power of attorney attached), and must be submitted in electronic format);
  • Appendix 9 - Participation card, filled in according to the Instructions for summarizing information from participation cards (Appendix 9A) and table for aggregation of information for participants (Appendix 10) - for the first and last reporting and for change;
  • Annex I - Declaration for minimum and state aid, filled in according to the Methodology for received minimum aid.

Compensations under the procedure of the Council of Ministers № 325 dated 26.11.2020, amended and ext. with CMD № 418 dated 30.12.2020 shall be paid for the past month.

Eligible target group are:

  • Persons employed on a basic employment contract;
  • persons insured in sectors of economic activities, which fall within the scope of the List of economic activities for which temporary restrictions for carrying out activities have been introduced, approved by an Order of the Minister of Labor and Social Policy;
  • persons using unpaid leave under Art. 160, para. 1 or art. 173a, para. 2 of the Labor Code.

In this regard, on the official website of the Employment Agency, section "Financial incentives for maintaining employment", an updated Order № RD-06-8/22.03.2021 of the Minister of Labor and Social Policy was published, approving List of the codes of economic activities for which temporary restrictions have been introduced for the implementation of an activity by an act of a state body during the period of declared state of emergency or declared state of emergency epidemic.

All current sample documents, as well as Instructions for employers to apply and report, are published on the official website of the Employment Agency.

The government has increased the budget of the Ministry of Tourism, allowing it to cover BGN 51 million in expenditures this year.

This will allow state aid to be paid to tour operators and travel agents in order to prevent bankruptcies in the sector and to compensate consumers of travel services who, due to the pandemic, have not been able to make the agreed trips.

24.03.2021

Increased resource for youth, entrepreneurship and social measures in the new version of the HRD Program 2021-2027

Measures for youth employment, entrepreneurship and social inclusion of vulnerable groups have more funds in the new version of the Human Resources Development Program 2021-2027. Amendments to the draft HRDP were presented at the seventh meeting of the Thematic Working Group for HRDP development and the Food and Basic Material Support Program for the 2021-2027 programming period. The changes are in line with the comments of the European Commission and the members of the working group.

There is a decline in the activity of young people in the labor market across Europe due to the covid crisis. Therefore, special measures for them, related to training, skills acquisition, inclusion in internships and others that provide more chances for work, will be supported by BGN 747 million. It is expected to cover 96,000 young people under 29. The pandemic crisis calls for greater support for the self-employed in the labor market, entrepreneurship, including social entrepreneurship. The self-employed and entrepreneurs will have access to BGN 90 million for skills acquisition and development of the social economy. More than BGN 1.4 billion have been set aside for social inclusion and equal opportunities.

HRDP 2021-2027 has two main areas of impact - support for the labor market and skills development and social inclusion. Over BGN 2.365 billion will be directed to measures to promote employment, of which over BGN 662 million are set aside for reforming the system of lifelong learning, acquisition of digital competencies, development of skills, including "green", adapting to change, improving working conditions, work-life balance. The measures are expected to reach 818,000 people. Opportunities for qualification, training, subsidized employment, validation of skills, etc. will be available to 258 thousand unemployed people.

The second main priority of HRD 2021-2027 for social inclusion of vulnerable groups allows for the provision of reformed social services and active inclusion of disadvantaged people. Over BGN 514 million will be directed to support in the family and in the community of children and adults, people with disabilities and people in inability to self-care. The measures will allow 114,000 people in need to receive personal care. People with disabilities will also be included in measures aimed at their active participation in the labor market. The focus of the priority for social inclusion is the closure of specialized institutions for people with disabilities and the reform of old people's homes with measures amounting to BGN 484 million. The new version of the HRDP places greater emphasis on the integration of marginalized communities.

The regional approach to Integrated Territorial Investment (ITI) will be eligible for the two HRDP priorities. The Managing Authority uses a flexible approach to the implementation of measures, which will be consistent with the activities of ITI-related regional strategies.

The changes in the HRDP 2021-2027 are in line with the texts of the Regulation on the European Social Fund +, which is expected to be adopted by the summer of 2021. The program is complemented by the measures of the National Recovery and Sustainability Plan, which provides support for the establishment of opportunities for more training in the online environment and development of social infrastructure.

19.03.2021

THE DEADLINE FOR ASSISTANCE FOR TOUR OPERATORS AND TRAVEL AGENTS IS EXPIRING

The Ministry of Tourism reminds all tour operators and travel agents that the deadline for submitting documents for applying for state aid of BGN 51 million expires on March 22.

This is one of the measures taken by the agency to help the sector to overcome the effects of COVID-19, the ministry said in a press release.

The term is consistent with the need to conduct an official inspection of the circumstances declared by the applicant company by the National Revenue Agency and the National Statistical Institute, as well as to ensure the possibility of eliminating any incompleteness and irregularities in the application.

The amount of one-time grants is 4 percent of turnover without VAT in 2019, disclosed in the financial statements under the Accounting Act, and the assistance provided is to compensate for losses of tour operators and travel agents for the period from March 1, 2020 until 31 December 2020.

The aid must be used as a matter of priority to reimburse passengers whose packages have been canceled due to COVID-19 for the same period.

The submission of applications for state aid is done electronically by filling in a web-based application form and the accompanying documents through the National Investment Management System (NIMS), through the module "E-application".

The currently implemented measure for tour operators and travel agents will be applied until April 5, 2021, after which a new state aid scheme will enter into force, which was published in the State Gazette today, the ministry said. It is to be notified to the European Commission.

The measure envisages the state to provide grants to tour operators in the amount of up to 15 percent of their turnover without VAT in 2019, but not more than the amount due for tourist packages for unrealized trips.

Funding for the new measure is provided by the already allocated but not used funds from the national budget. According to the indicative values, the unspent funds are nearly BGN 19 million. The funds under the new state aid are received regardless of the receipt of funds under the current scheme and in compliance with the rules for state aid.

18.03.2021

THE BUSINESS WILL BE SUPPORTED DURING THE LOCKDOWN

We have a dialogue with the institutions and the branches regarding the lockdown. We provide full business support for these 10 closing days.

Immediately after the order of the Minister of Health, we will notify the European Commission (EC) of the procedures under which we will compensate the affected businesses.

This was stated at a briefing by Economy Minister Lachezar Borisov regarding the partial lockdown in the country, which will start on Monday (March 22nd) and will last for 10 days.

"We have a ready platform and we communicate with all stakeholders. On a project basis we have decided to run the notification to the EC, and in parallel we will apply to the NRA so as not to waste time. Economic measures 60/40, 80/20, “Keep me” continue. The goal is to reach each of the companies affected by the measures," he assured.

The measures through the Bulgarian Development Bank (BDB) for individuals on unpaid leave will continue and will be active from next week. Guarantee schemes with loans will also be extended at this stage.

According to him, the socio-economic development is important, and even during the crisis Bulgaria is relatively well compared to other EU member states.

The affected companies will receive compensation through the National Revenue Agency, as well as through the Innovation and Competitiveness Program. According to him, they will be able to receive up to 50 thousand euros.

18.03.2021

PEOPLE ON UNPAID LEAVE FOR THE 10 DAYS OF LOCKDOWN WILL HAVE RETAINED INSURANCE

"75% of the insurance income will be paid for the period of the new measures. People on unpaid leave in the next 10 days will have retained insurance."

This was announced by the Minister of Labor and Social Policy Denitsa Sacheva. According to her, under the measure "Keep me" there will be a need for additional BGN 7 million for the period of the new lockdown.

The Minister reminded that with a change in the law, up to 90 days of unpaid leave due to an order of a state body are now considered insurance experience and those affected will not have a problem with retirement.

The measures 60/40 and 80/20, which can be used by employers in case of partial closure, continue, as is the case with hotels.

All parents on unpaid leave can apply to the Social Assistance Agency for assistance of BGN 650 for one child and BGN 975 for two or more children in distance learning. The money is given proportionally for these 10 days, in which the gardens and schools will be closed, explained Minister Sacheva.

"As for the "Parents in Employment" program, it also continues its action and whoever wants, can take advantage of it and can apply for support in the Employment Agency," Sacheva said.

Under this measure, unemployed relatives or people who have the relevant qualities and are chosen by the parents can be employed in the Child Care Offices. They will receive a minimum wage, along with social security contributions.

 No additional social measures are planned at this stage. Existing hypermarkets, which have not been closed so far, can also be used.

All compensations will be eligible until April 15 if applied at the beginning of the month.

17.03.2021

THE GOVERNMENT EXTENDED THE MEASURES BECAUSE OF COVID-19

The government has extended measures for people and businesses due to the COVID-19 pandemic. At its meeting, the Council of Ministers adopted amendments to Decree № 151 determining the terms and conditions for the payment of funds to employers for maintaining employment in sectors affected by the distribution of COVID-19.

The changes provide for extension of the deadline for payment of funds under measure 60/40 until 31 May 2021.

Funds will continue to be paid for workers who during the period from March 13 to December 31, 2020 have worked part-time, have used leave under Art. 173a of the Labor Code or their work has been suspended due to introduced temporary restrictions on activity. Employees should have been in an employment relationship with the employer before 1 October 2020.

During the additional period of implementation of the measure, the amount of support from the state will amount to 60 percent of the insurance income and the insurance contributions due by the employer for October 2020.

Employers who have proven a decrease in sales revenues in the month preceding the month of application by not less than 20 percent compared to the average revenues for 2019 will also be able to apply for payment of funds.

Until April 15, 2021 employers will be able to submit applications for payment of funds for the period from January 1 to March 31, 2021. The applications will be considered and financed according to the current procedure.

The measure for compensation of workers in closed businesses is also extended. They will receive 75% of their insurance income by the end of June 2021. Compensation will be paid for no more than 60 days within 2020 and for no more than 90 days within 2021, in which employees have used unpaid leave due to imposed restrictions for carrying out the activity for which they are employed, by an act of a state body.

The term for payment of compensations for the purpose of maintaining the employment in the amount of BGN 290 per month to the employees and the self-insured persons from the sectors “Transport”, “Hotel and restaurant” and “Tourism” is extended until May 31, 2021.

Compensation will be paid upon receipt of a positive decision from the European Commission on the compatibility of the aid with the internal market.

17.03.2021

EUR 85 MILLION FOR SOFT LOANS TO SMES WITH A GUARANTEE FROM THE EUROPEAN GUARANTEE FUND

Raiffeisenbank Bulgaria will finance small, medium and slightly larger companies (with up to 500 employees) with a new EUR 85 million on facilitated terms. The funds will be provided with a guarantee from the European Investment Fund (EIF) under the European Guarantee Fund (EGF) mechanism.

The guarantee agreement signed between Raiffeisenbank and the EIF is the first of its kind for the country. Under it, within this year the bank will lend to local businesses with 85 million euros, and for each loan will be provided a 70% guarantee from the EIF – i.e. in case of inability of the borrower to repay its obligations, the fund covers 70% of losses for the bank. This type of guarantee reduces the risks for financial institutions and allows them to apply lighter collateral requirements to the lending companies than are usually required.

The parameters

Under the new guarantee agreement, companies will be able to receive up to EUR 7.5 million, with no minimum amount of funding. The funds will be provided in the form of investment or working capital loans with maturities of three months to 10 years, depending on the specific product. When asked if there are grace periods, what are the interest conditions and collateral requirements from the bank, they indicate that the approach to lending to companies is individual. The deadline for applying for funding under the program is December 31, 2021.

The new mechanism

The European Guarantee Fund is a new guarantee mechanism set up by EU member states in 2020 in response to the crisis caused by the COVID-19 pandemic. Its total amount is EUR 25 billion, raised through proportional contributions from the member states to their share in the capital of the European Investment Bank, of which the EIF is a part. The aim is to allocate the funds in 2021, the main part of which will be provided in the form of guarantee instruments aimed at supporting the affected business in the EU, with a main focus on small and medium-sized enterprises. About 20% of the amount will go to direct and indirect equity instruments, EIF CEO Alan Godard said in an interview.

Specifically for Bulgaria for 2021, the EIF envisages investments of around EUR 250 million in the form of equity financing and loan guarantee instruments. Part of the funds is from a recycled resource under the JEREMIE initiative, which has so far financed about 10,000 companies in the country with a total of nearly 900 million euros, and the returned principal and interest are reinvested in new instruments.

16.03.2021

HOW LONG WILL COMPENSATION BE RECEIVED UNDER THE "KEEP ME" MEASURE

The Minister of Labor and Social Policy Denitsa Sacheva updated the order for the temporarily limited economic activities, the workers of which can receive compensation under the project "Keep me" from the state because they are on unpaid leave.

The new version of the document also includes temporarily closed businesses in the districts of Blagoevgrad, Burgas, Dobrich, Kyustendil, Pazardzhik, Pleven, Ruse, Silistra, Sliven, Smolyan, Sofia, Haskovo, Shumen and Yambol, whose employees can receive financial support in the amount of at 75% of their insurance income.

The full text of the order can be seen here: https://www.mlsp.government.bg/uploads/26/zaetost/zapoved-rd-06-6-ot-15032021.pdf.

According to the order at the national level until February 28, compensation will be available to employees of drinking establishments (excluding discos and bars), language and education centers, other training centers and vocational training schools, as well as employees in the economic activities of catering, organizing congresses and trade fairs, gambling halls and casinos.

Until March 31, employees of companies for group tourist trips with organized transport abroad, companies for travel agency and operator activities, discos, bars and other nightclubs will be able to receive compensation.

Employees of children's educational and sports centers and clubs that provide organized activities for children, as well as those employed in the performing arts (excluding theaters) and related ancillary activities, may receive compensation until April 30.

15.03.2021

HOW MANY UNEMPLOYED PEOPLE FOUND WORK DURING THE PANDEMIC

The administrative statistics of the Employment Agency show that the total number of people who went from unemployment to employment during the 12 months of the epidemic was 255,031 people, which means that on average more than 21,250 registered unemployed have found their new jobs per month.

In February 2021, the number of unemployed who started work increased by 3,925 compared to January, reaching 18,230. 281 people from the group of pensioners, students and employees have also found their new position through employment offices.

80.5% of those who started working in February are employed in the real economy, most of them employed in the manufacturing sector - 24.0%, followed by trade - 16.0%, government - 6.5%, humane healthcare and social work - 5.0%, construction - 4.9%, etc.

3,560 unemployed persons from the risk groups were employed in subsidized jobs during the month - 101 under employment programs and measures and 3,459 - under schemes of the Operational Program "Human Resources Development". The Employment for You scheme under OPHRD, which started in July 2020 as an anti-crisis measure, has provided employment to a total of 10,080 people, and only in February employment contracts were concluded with 2,273 new unemployed.

6.9% is the level of registered unemployment in the country in February. The administrative statistics of the Employment Agency reported a decrease of 0.1% compared to the previous month, and the growth on an annual basis was by 0.7 percentage points. At the end of the month, the registered unemployed in the labor offices were 225,281, which is 4,469 fewer than in January. On an annual basis, there is an increase of 22,781 people.

During the month, 24,897 new unemployed persons registered with the labor offices, which is 10,129 less than in January and 2,156 more than the number of newly registered in February 2020. Another 495 people from the groups of job seekers employed , students and pensioners also registered with the Employment Agency during the month.

The monitoring of the inflow of registered unemployed in the past year, marked by the Kovid crisis, shows that the most affected by it are those working in the hotel and restaurant sectors - 26.5%, trade - 16.4%, transport - 15.5% of the total number of newly registered.

The anti-crisis measures for short-term employment support, popularly known as “60/40” and “80/20” (project “Short-term employment support in response to the COPID-19 pandemic” under OPHRD), continue to work to preserve employment, as in February, more than 75,000 employees were compensated under these measures.

The Keep Me measure, funded by the OPHRD and the React-EU financial mechanism, to support employees in forced unpaid leave imposed by the suspension of a number of economic activities in order to control the COVID-19 pandemic, provided funds for nearly 48 500 employees. In the one-year period of a complicated epidemic situation, these anti-crisis measures helped to keep the employment of more than 400 thousand employees.

Demand for labor is growing, with 13,469 jobs advertised on the primary labor market in February, or 2,118 (18.7%) more than in the previous month. The largest share of vacancies in the real economy is in manufacturing (27.9%), followed by general government (12.2%), trade, repair of motor vehicles and motorcycles (9.9%), hotels and restaurants (9.8%), administrative and ancillary activities (7.9%) and agriculture, forestry and fishing (5.5%).

The most sought-after professions during the month are: staff caring for people; personnel employed in the field of personal services; machine operators of stationary machines and equipment; workers in the mining and processing industry, construction and transport; skilled workers in the production of food, clothing, wood products; sellers; waste collection and related workers; drivers of motor vehicles and mobile equipment; security and protection personnel; metallurgists, machine builders and related workers; craftsmen, etc.