17.05.2023
HOW MUCH TIME DO WE ALLOW FOR A LUNCH BREAK?
Rest is an important part of the process of carrying out any activity, regardless of whether it is contract work, private business, project, childcare and household work, etc. The Constitution of the Republic of Bulgaria stipulates that along with the right to work, workers are also guaranteed the right to rest.
Workers and employees have the right to rest on the working day. They can be one or several. Regardless of whether the working day includes one or several breaks, a meal break, which cannot be less than 30 minutes, must be provided during the working day.
As a rule, working day breaks are not included in working hours. This means that if you work an 8 hour work day, the rest time is on top of those hours. For example, with working hours from 9 a.m. to 6 p.m. with a one-hour break, the actual working time is 8 hours, divided by one or more breaks with a total duration of one hour - you work from 9 a.m. to 12 p.m. and from 1 p.m. to 6 p.m., with a 1-hour lunch break between 12 p.m. and 1 p.m. There may be several breaks in the working day, it all depends on the organization of work and the type of work. The only mandatory condition is the provision of no less than a 30-minute meal break during the working day, which means that the corresponding meal break can be in a longer period of time.
The distribution of working hours and breaks is established in the company's internal labor regulations. The Rules for the internal working order define the beginning and end of the working day, the order for alternation of shifts, breaks during work, the order for reporting working hours, the time of mandatory presence in the enterprise when variable working hours have been agreed, the time for nutrition of workers and employees in productions with an uninterrupted work process and in enterprises in which work is carried out continuously, as well as other issues related to the distribution of working time and the organization of work in the enterprise.
There are certain cases in which the meal break is included in working hours - this is the case in productions with an uninterrupted process (shifts) and where work is continuous. An important condition for including the meal break in working hours is that the employee is obliged to be physically present at a place designated by the employer. When these conditions are met, the employer is obliged to provide time for meals during working hours.
Physiological modes of work and rest during work are developed and introduced in all types of work and in all companies and organizations, regardless of the form of ownership, when:
Reference:
Art. 139, para. 1 of the Labor Code
Art. 151, para. 1 of the Labor Code
Art. 151, para. 3 of the Labor Code
Art. 4a, para. 1 of the Ordinance on working hours, breaks and vacations
Art. 9 of Ordinance No. 15 on the conditions, order and requirements for the development and introduction of physiological regimes of work and rest during work
11.05.2023
WE MAY NO LONGER VERIFY THE COMMANDER WHEN TRAVELING
In March 2023, a number of changes were made to the Ordinance on business trips in the country. After about 20 years of waiting, the amount of funds that the seconded person receives when fulfilling his commitments outside the territory of his place of work was increased.
Along with this, however, a number of other changes were made related to the way business trips are organized and reported. One of them is that the need to certify the order with the signature of an authorized official at the place of posting is determined by the employer.
This means that at the request of the employer, the worker or employee on a business trip may not "stamp" the business trip document, which is a great relief when performing tasks in another populated place.
What are the other important amendments to the Ordinance on business trips in the country?
The first important change is in the texts that indicate what should be included in the posting order. It is required to specify:
- the name of the enterprise and the official who issued the order;
- the three names and position of the seconded person; the place of posting;
- the task for which the person is seconded; the duration of the business trip; the per diem, travel and accommodation allowances to which the seconded person is entitled;
- the method of travel and other data that are important for determining the right and amount of travel allowance;
- the type of report on the work performed;
- the need to certify the order with the signature of an authorized official at the place of secondment.
After the changes in the law, when the business trip order states that the business traveler travels with a personal motor vehicle, travel money is paid equal to the equivalent of the fuel consumed according to cost norms determined by the manufacturer of the motor vehicle, for a combined mode of movement ( urban and suburban).
In these cases, the order for a business trip must include the data on the type and brand of the personal motor vehicle, on the consumption, type and price of fuel, on the route and the distances in kilometers on the road network, along which the travel money is established. And when other seconded persons travel with the seconded person, the seconded person pays travel money only to him.
Also, those posted for more than 1 month are allowed to return at their request to the place of their permanent work at least once a month during one of the days off and holidays, with their travel expenses being paid.
With regard to the fixed amounts of per diems for business trips, at the discretion of the seconding party, another collective body for the management of the enterprise or when this is agreed in a collective labor agreement or in an agreement with a trade union organization of civil servants, the people on business trips are paid daily money in the amount of up to 200 per cent of their amount specified in the regulation.
Per diems are not paid for official use of a full-day free meal at the place of business trip. Accommodation fees are also not paid when a free night is used at the place of the business trip. The budgetary organizations already pay travel money in the amounts determined according to the regulation and within the funds approved for this purpose with the budgets and estimates for the accounts for funds from the European Union for the relevant year.
Reference:
Art. 9, Art. 13, Art. 18, Art. 21, Art. 23, Art. 27, Art. 30 of the Ordinance on business trips in the country
10.05.2023
CIVIL CONTRACT WORK. WHAT TAXES ARE PAYABLE?
If you have concluded a civil contract in your capacity as a natural person, the income acquired under the contract is subject to taxation according to the rules for taxation of remuneration in non-employment legal relationships, namely with advance tax and with tax on the general annual tax base (Art. 29, Para. 1, item 3 of the Personal Income Tax Law). You file an annual tax return.
Income from civil contracts under the Personal Income Tax Law is income from non-employment legal relationships and is subject to declaration in Appendix No. 3 of the annual tax return in all cases, regardless of their amount.
Non-employment legal relations are those which cannot be defined as employment legal relations or cannot be defined as legal relations with persons exercising a trade or a liberal profession, by virtue of which the achievement of a certain result is due to a natural person who is not a sole trader (§ 1, item 30 of the additional provisions of the Personal Income Tax Law). See also Freelancing.
Determination
The taxable income from business activity of natural persons who are not traders within the meaning of the Commercial Law is determined by reducing the acquired income with activity expenses in the amount of 25 percent for income from exercising a free profession or remuneration from non-employment legal relationships.
The annual tax base for income from other economic activity is reduced by:
The contributions that the person is obliged to make for the tax year at his own expense in accordance with Art. 40, para. 5 of the Law on Health Insurance, when the taxable income from another economic activity is included in the annual equalization of the insurance income.
The sums received for business trips under legal relationships that are not employment are not subject to taxation, when they are at the expense of the contracting authority:
Advance tax
You owe advance tax on the difference between the taxable income and the withheld compulsory social security contributions. If you are self-insured – on the difference between the taxable income and the contributions you are obliged to make as a self-insured person on your own account for the months of the quarter in which the taxable income was acquired. The tax rate is 10 percent.
If you are 50 or more than 50 percent disabled, you owe business income tax in advance after your taxable income from all sources of income acquired since the beginning of the year and subject to tax on the annual tax base, reduced by mandatory insurance contributions withheld or paid for your account exceeded BGN 7,920.00. You certify the degree of reduced working capacity with a TEMC/NEMC expert decision valid on the date(s) of payment of the income, a copy of which you present to the payer of the income once, when he is obliged to withhold and pay the tax.
Withholding
When the payer of the income is an enterprise or a self-employed person, the amount of tax is determined and the tax is withheld from the payer of the income when it is paid. If you self-insure, you must have submitted a written declaration of this to the payer.
The payer issues for the paid income and withheld tax a receipt for paid amounts according to a model, which he provides to you personally or through an authorized person. Upon your request, the payer shall issue, within 14 days, an office memo according to the model for the income paid during the year and for the tax and mandatory insurance contributions withheld during the year.
Where the payer of the income is not a business or a self-employed person, the amount of tax is determined and the tax is paid by you, the person who acquired the income.
The payer does not withhold advance tax and does not issue an invoice for paid amounts and a service note. Documentation of earned income is done by you. Taxable persons, who are not obliged to issue a fiscal receipt from a fiscal device, issue a document for the income they have acquired from another economic activity, when the payment is not by bank transfer, containing the following information (Art. 9, Para. 2 of the Personal Income Tax Law):
Declaration
You declare advance tax by submitting a quarterly declaration under Art. 55 of the Personal Income Tax Law by the end of the month following the quarter of income acquisition. No advance tax is withheld and remitted for income earned in the fourth quarter of the tax year, except when, as the person acquiring the income, you declare in writing to the enterprise or the self-insured person - payer of the income that you wish to withhold the tax. In these cases, the withheld tax is paid and declared by the payer of the income by January 31 of the following year with the declaration under Art. 55 of the Personal Income Tax Law only electronically.
When for the acquired income from another economic activity during the relevant quarter, you should not pay advance tax - in the cases in which relief is used for reduced working capacity by 50 and over 50 percent, declaration under Art. 55 of the Personal Income Tax Law is not submitted.
In the case of payment of income from other business activities subject to taxation on the general annual tax base, the enterprises - payers of income, prepare a report according to a model for the income paid to natural persons during the tax year. The report shall be provided by February 28 of the following year to the territorial directorate of the National Revenue Agency at the place of registration of the payer of the income (Article 73, Paragraph 1, Item 1 of the Personal Income Tax Law). The report is submitted only electronically in the format and in the order approved by order of the executive director of the NRA.
When the payer of the income is not obliged to withhold and pay the tax, a declaration under Art. 55 of the Personal Income Tax Law, you submit it to the NRA office at your permanent address or electronically with a personal identification code or a qualified electronic signature. You declare these incomes in the annual tax return under Art. 50 of the Personal Income Tax Law, in the period from January 10 to April 30 of the year following the year of acquisition of the income. Enterprises and self-insured persons - payers of income from non-employment legal relationships fill in a template report on the income paid to individuals.
Payment
When the payer of the income has an obligation to withhold and pay the advance tax, the payer pays the tax to the state (central) budget to the account of the TD of the NRA at the payer's place of registration.
When the payer of the income has no obligation to withhold and pay the advance tax, you pay the tax to the state (central) budget to the account of the TD of the NRA at your permanent address.
The tax of a foreign person, who received income through a proxy with a permanent address in the country, is paid into the state budget on the account of the TD of the NRA at the proxy's permanent address.
10.05.2023
FROM JUNE 1, THE CHANGES IN THE LAW ON SOCIAL ASSISTANCE COME INTO FORCE
From June 1, when the changes in the Law on Social Assistance come into force, adults who leave residential type of services will be entitled to receive, for a period of three months, targeted assistance in the amount of the poverty line for the relevant year.
With changes to the regulations for the implementation of the Social Assistance Act, due to be approved by the government very soon, state benefits will be tied to the poverty line or a percentage of it. This will extend the reach of people on benefits by around 80% compared to now and increase the amounts by between 60 and 120% depending on the target groups. It is planned that when a person on monthly social assistance starts working, he will continue to receive benefits for another 3 months.
The one-time social assistance to cover individually arising needs will also be in a new amount. Now it is defined as five times the amount of the guaranteed minimum income and is BGN 375. From June 1, this aid will be three times the poverty line or BGN 1,512 for this year.
In addition, the submission of an application for the granting of social assistance will be possible at any Social Assistance Directorate of one's choice. Thus, help will be able to be sought if necessary, regardless of where the person in need is located on the territory of the country.
09.05.2023
IN WHICH SECTORS ARE THEY LOOKING FOR WORKERS?
Job offers decreased by 5%, and at the end of April they were just over 49,000, according to an analysis of the JobTiger platform. On an annual basis, there is also a decrease of 7% or 3,500 listings less compared to April 2022. However, the number of listings remains high and there is still no cause for concern.
Contrary to the previous March, April saw a slight drop in offers in almost all sectors. The exception is the "Hospitality and restaurant industry" sector, which, characteristic of the season, continues to see growth. The number of listings in this sector increased by 4% or 440 more offers.
The number of advertisements in the "Healthcare and Pharmacy" sector remains almost unchanged. Its offers have increased by 25 (1% growth). In all other sectors, the number of offers decreased in April.
The biggest declines were in the "Manufacturing" (560 offers less, 7% drop) and "IT" (460 offers less, 9% drop) sectors. They are followed by the sectors "Administrative and service activities" (390 offers less, 7% drop), "Accounting, auditing, finance" (330 offers less, 14% drop), "Construction" (310 offers more little, down 11%), "Trade & Sales" (250 fewer offers, down 2%), "Logistics & Transportation" (240 fewer offers, down 5%) and "Marketing & Advertising" (110 offers down -small, 7% decline). The noticeable decline in offers in the "IT" sector continues, and compared to April 2022, they are 3,370 fewer, or a drop of 45%.
Share distribution
As a share of offers in April, the sectors "Trade and sales" with 23% and "Hospitality and restaurants" with 20% are strong leaders. Advertisements in these two sectors formed almost half of the job offers in the country in April.
The sectors "Manufacturing" (14%) "Administrative and service activities" (9.4%), "Logistics and transport" (8.8%), "IT" (8%) "Construction" (5%), " Healthcare and Pharmacy' (4.1%), 'Accounting, Auditing, Finance' (4%), 'Marketing and Advertising' (3%) and 'Art' (1%).
Work from home
Offers for work from home and/or remote work decreased by 11% in April. In number, they are just over 3900. The distribution of these offers by sector is: 60% in the "IT" sector, followed by "Administrative and service activities" (15%), the outsourcing industry sectors (13%) and "Trade and sales" (7%). As a share in April, work from home and/or telecommuting ads are 9% of all ads. The analysis shows that since the beginning of the year, offers of this type have fallen by 20%. Of course, here you can see the connection between these listings and listings in the IT sector, which has seen a year-to-date decline of 23%. On a year-over-year basis, job-from-home and/or telecommuting jobs are down 34% or 2,000 less than in April 2022.
Offer by cities
The total number of advertisements in the leading regional cities decreased by 7%. The dynamics in each of them is as follows: Sofia (-8%), Plovdiv (-7%), Varna (-2%), Burgas (-1%), Ruse (-4%) and Stara Zagora (1 %).
As a share, the ads for the city of Sofia are 40%, and in the other cities are: Plovdiv (10%), Varna (10%), Burgas (5%), Ruse (3%) and Stara Zagora (3%).
09.05.2023
WHAT PENALTIES ARE FACED BY PARENTS WHO DO NOT SUPERVISE AND DO NOT ACCOMPANIE THEIR CHILDREN
Not infrequently, in recent years, information has appeared about night checks in discotheques, where minors or even minors are found. Reports immediately follow of parents being summoned and fined for not accompanying their children. It is an open secret that in thousands and even tens of thousands of cases, parents leave their children unsupervised or unaccompanied in cases where the law mandates that this be done. And although very often this leaves no consequence, it is good to know the rules and the danger of taking responsibility and sanctioning.
A special Child Protection Law has been in force in Bulgaria for several years. During this period, it already has more than 20 amendments and additions, but it is definitely becoming more and more commonly used. Something more. Children can now often be heard telling their parents that they will "give them to child welfare" if they don't listen to them or if they scold them. All kidding aside, however, it should definitely be pointed out that there are really a lot of rules in the law that really aren't known very much.
In the Child Protection Act, it is explicitly noted that child protection is carried out through certain bodies. Such are, for example, the chairman of the State Agency for Child Protection and the administration that supports him in the exercise of his powers. The ministers of labor and social policy, of internal affairs, of education and science, of justice, of foreign affairs, of culture, of health care and mayors of municipalities are also such bodies. The most frequently used and those who are on the front line, however, are the "Social Assistance" directorates.
The law specifies the rights and obligations of parents, guardians, custodians or other persons who take care of a child. The rights are few and quite generally written. Thus, the law states that "any parent, guardian, custodian or other person who takes care of a child may request and receive assistance from the authorities under this law." They also have the right to be informed and consulted about all measures and actions taken under this law and can request a change in the measures if the circumstances change.
At the same time, however, there are many responsibilities for parents, guardians, custodians or other persons caring for a child. For example, they are obliged to accompany the child in public places after 20:00 if the child has not reached the age of 14, respectively after 22:00 if the child has reached the age of 14 but not reached the age of 18 years old. If everyone who is assigned to take care of a child cannot accompany him, they are obliged to provide an adult with legal capacity to accompany him in public places after 10:00 p.m. if the child has reached the age of 14, but is under the age of 18. Certification of the quality of the child's companion takes place in accordance with the procedure determined by an ordinance dedicated to the specialized protection of children in public places.
In addition, parents, guardians or other persons who take care of a child are obliged to implement the measures taken under this law and to assist in the implementation of child protection activities, the Child Protection Law provides. They are obliged not to leave children under the age of 12 without supervision and care, "if this creates a danger for their physical, mental and moral development". Definitely too stretchy a norm.
Anyone caring for a child also has a duty to prevent the child from participating in advertisements or other forms of commercial communication for genetically modified foods. They must not in any way allow the participation of children in programs within the meaning of the Law on Radio and Television, which are unfavorable or create a danger of damage to their physical, mental, moral and/or social development.
The Child Protection Act also provides for considerable fines for non-compliance with these obligations. For example, a parent, guardian, custodian or other person who violates the rule that he must accompany or at least provide a companion during the hours specified above, is "punished with a fine or a pecuniary sanction of BGN 300 to BGN 500, and in case of repeated violation - with a fine or a pecuniary sanction of BGN 500 to BGN 1,000." Whoever, in violation of the law, leaves without supervision and sufficient care a child under the age of 12, for whom he is taking care, thereby creating a danger for his physical, mental and moral development, shall be punished with a fine of BGN 1,000 to BGN 2,000 for the first offense, and in the event of a repeated violation - with a fine of 2,000 to 5,000 BGN. And that, if it is not subject to a more severe administrative penalty under a special law or the act does not constitute a crime.
A parent, guardian, custodian or other person who takes care of a child who violates his obligations related to advertisements is punished with a fine of BGN 250 to BGN 500 for the first violation, and in the case of a second violation - with a fine of BGN 500 to BGN 1,000 BGN Fines are higher for violations of obligations related to a child's participation in a radio or television program. If such participation is allowed and thereby creates a danger for his physical, mental, moral and/or social development, he is punished with a fine of BGN 1,000 to BGN 2,000, and in the event of a repeat violation - with a fine of BGN 2,000 to BGN 5,000. And here the fines are if the perpetrator is not subject to a heavier administrative penalty under a special law or the act does not constitute a crime.
It is also important to know that anyone who fails to comply with an enforced mandatory prescription under the Child Protection Act is punished with a fine or a pecuniary sanction of BGN 2,000 to 5,000, and in case of a repeated violation - with a fine or a pecuniary sanction of BGN 5,000 to 10 BGN 000.
05.05.2023
LOW WAGES, SUPPORT FROM PARENTS, POOR EDUCATION AND LAZINESS ARE AMONG THE MOST COMMON REASONS WHY YOUNG PEOPLE IN BULGARIA DO NOT WORK
1,725 young people under the age of 29 are registered as unemployed at the Labor Offices in the three regions of North-West Bulgaria according to the latest data of the Employment Agency. There are 447 in the Vidin region, 715 in Vratsa, and 563 in Montana. On a national scale, about 140,000 young people neither study nor work. The data were presented at a round table on the topic "Work for young people, young people at work", organized by MEP Petar Vitanov.
"Bulgaria has been facing a cascade of crises in recent years that have created a major workforce problem." This was said by the head of the Delegation of the Bulgarian Socialists in the European Parliament.
According to a nationally representative survey by Trend agency, presented by sociologist Evelina Slavkova, 88 percent of those questioned believe that there should be more state policies aimed at unemployed youth.
"Approximately 60 percent of respondents believe that the education system does not sufficiently prepare young people to find a job, 25 percent have the opposite opinion. 75 percentage points of the respondents indicate low pay among the reasons why young people cannot find work; poor conditions from employers and without contracts - 51 percent; 50 percent point out a lack of jobs; 48 percent note the lack of experience; 38 percent - lack of initiative to look for work. 42 percent, mostly between 18 and 29 years old, answer, that the state is obliged to provide work. Finding a job is a personal responsibility, 51 percent believe. When asked whether or not there are enough opportunities for employment, 33 percent of recipients answer positively, while 55 percent are of the opposite opinion. 34 percent believe that there should be more opportunities for retraining, 13 percent - that a reform in higher education is needed. According to 75 percent of the young people asked, they can only find a job in the big cities, and 56 percent believe that it is easier abroad . 66% of Bulgarians believe that young people should have connections in order to find a good job. When you ask them why you don't want to work or study, they say that their parents are abroad and support me. In smaller settlements, the money they receive from their parents abroad is much higher than the salary they would receive in that settlement. Young people in Bulgaria are lazy and that's why they can't find a job, according to 32% of the respondents."
Daniel Parushev, chairman of the National Representation of Student Councils, also took part in the discussion. He outlined the problems in preparing young people for the labor market. He drew attention to the fact that more and more unprepared young people enter higher education institutions, scholarships continue to be low, and the conditions in the majority of dormitories are not good. The lack of innovation of professors and assistants is among the reasons why students do not attend lectures and exercises, he pointed out. There is a lack of connection with business, enough paid internships for the student community. Bulgarian companies show little interest, but still, higher education in our country has grown a lot, Parushev also stated.
In a global context, the labor market is changing at an extremely high speed, technological developments and innovations are emerging, said Atanas Pekanov, the Deputy Prime Minister for the management of European funds. This will be the 21st century - a century of challenges, of new competencies that we must acquire every single day, he commented. Pekanov pointed out that with each passing day, we must work to ensure that young people have access to these competencies. We must not forget something that will be necessary for all of us – the ability to learn for life, said the Deputy Prime Minister.
More than 140,000 young people are not employed and do not participate in any form of training, noted Deputy Minister of Labor and Social Policy Emil Mingov. According to him, this is a huge reserve, the question is to be able to move it. We are faced with a heterogeneous mass of young people who do not work and do not study, he pointed out and added that some of them are in a vulnerable position, including the Roma community, but there are others who, despite everything, do not want to work. Regarding the first group, the deputy minister said that a model of centers is currently being developed in the Roma communities themselves, where it will be established what can activate young people to work and how to change the current practice, where some people work irregularly and at the same time they receive social benefits.
The trend at the moment is for children to stay in Bulgaria to complete their first bachelor's degree here and then, through the master's degree, to see foreign experience as well, said the Acting Minister of Education and Science Prof. Sasho Penov at a round table dedicated to young people. "Of the enrolled students, 60% graduate, the others give up because they don't want to study," the Minister of Education pointed out.
The problem of youth employment is more comprehensive, but the reasons for high unemployment among young people are rather prosaic. This was noted by Vanya Grigorova, economic adviser of the Confederation of Labor "Support":
"When we make the environment in Bulgaria more welcoming for young people, then we can expect them to stay here to study, raise families and have children. Otherwise, we will continue to queue at Terminal 2. We cannot continue like this , especially if the rulers continue to turn a blind eye to such key problems as low pay, exploitation, the impossibility of studying normally in Bulgaria."
04.05.2023
THE EC GRANTS US MONEY FOR 787,000 BULGARIANS THREATENED BY POVERTY
In some EU countries, cohesion funds represent significant support, and in Bulgaria their value by 2027 reaches 1.8 percent of GDP, according to data presented by the European Commission. It is added that in 2020, GDP per capita in Bulgaria was 55 percent of the EU average, and in the Sofia region it was 92 percent, while in all other regions it was from 36 to 42 percent.
It is noted that for less developed regions the funding is even higher and in the Bulgarian North-West region it exceeds 3.5 percent of GDP per year on average. According to forecasts, in the next four years, these European funds will contribute to GDP growth of three percent in our country, Romania and Portugal. By 2027, Bulgaria has 10.8 billion euros available for cohesion, and the funds will be directed to economic, social and territorial development, including the transition to an environmentally friendly and digitized economy.
The Commission clarifies that our country receives assistance for the development of innovations under the general policy for the exchange of technology and research results, and their application in companies and the economy, for the digitization of the administration. 140 million euros have been allocated for the improvement of Bulgarian centers of excellence, 200 million euros will be provided to 12 centers for digital innovation. Over 10,000 Bulgarian companies will receive targeted support to increase competitiveness through new production investments and the adoption of modern technologies.
It is added that the Bulgarian economy is the most energy-intensive in the EU and waste management remains a challenge, with household waste processing still significantly below the EU average. Bulgaria is among the most vulnerable countries in the EU to changes in nature, including rising temperatures, drought and excessive rainfall.
To address these challenges, an investment of €2.1 billion will help our country achieve its goals for drinking water and urban wastewater quality, for a clean and circular economy, for biodiversity, and for comprehensive disaster risk management.
Over 1.7 million people will benefit from improved access to public water supplies and 340,000 people will gain access to new or improved wastewater treatment.
The density of railway lines and roads in Bulgaria is far below the EU average, with a third of the national road network being of poor quality, and this affects regional connectivity and road safety, the commission's assessment states. The EU is allocating 1.5 billion euros to address these issues. The planned investments will promote the use of clean modes of transport and alternative fuels, improve the quality of roads and contribute to reducing the harmful impact of transport on the environment. Projects to improve 167 kilometers of roads will be funded. With European funds, it is planned to develop railway sections, including the connection between Bulgaria and the Republic of North Macedonia and the line Sofia - Pernik - Radomir.
The levels of poverty and income inequality in Bulgaria are particularly high among children, people with disabilities, Roma and those living in rural and remote areas, adds the EC. 2.5 billion euros have been earmarked to combat these inequalities. The investment is expected to improve early childhood education and care. The funds will promote the inclusion of the most vulnerable groups, including the elderly and disabled, as well as the Roma.
It is expected that over 330,000 Bulgarian citizens will be supported in their job search, including over 45,000 Roma. In the field of education, 760,000 children and students will benefit from European funding. More than 530,000 low-income and disadvantaged Bulgarians are expected to receive food and cleaning supplies each year, and 50,000 to receive a hot lunch throughout the year.
In total, European funds are expected to contribute by 2030 to increasing the employment rate in our country to 79 percent, and every third adult will continue to study. These measures are expected to benefit 787,000 Bulgarians threatened by poverty and exclusion from society. By 2029, European funds should improve housing conditions for 1,247 Bulgarians and provide support for energy efficiency in 3,731 residential buildings.
03.05.2023
INSURANCE AND TAXES UNDER CIVIL CONTRACTS
A civil contract is a contract by which a person, called the "executor", undertakes to provide a certain production result (physical work) at the order of another person/firm, called the "contractor".
The very name "civil contract" is rather colloquial and has become established in practice due to its easier recognition. In the labor law world, the contract governing this kind of relationship between the parties is called an "assignment contract".
The rights and obligations of employers, assignors and insured persons when exercising labor under an employment contract and a civil contract are different.
What are the differences in insurance and taxes between an employment contract and a civil contract?
Insurance
Insurance is one of the big differences between an employment contract and a civil contract. The civil contract is not considered a work experience, but only an insurance one. Contractors under a civil contract are insured for fewer risks than those working under an employment contract.
In the employment contract, each profession has a precisely defined minimum insurance threshold. This is the minimum on which the person is generally insured for all insurance risks.
In the civil contract, if the remuneration after deducting the legally recognized expenses is less than the minimum wage for the country and the person is not insured on another basis, no insurance is due. The person pays only health contributions at his own expense, as is the case with unemployed persons. Insurance is also not required if the executor is a sole trader or a self-insured person.
The civil contract does not include insurance for occupational accidents, occupational disease, general illness and maternity, unemployment, and accordingly, executors under civil contracts are not entitled to compensation from the state on these grounds.
If the person is insured on another basis or receives remuneration in an amount greater than the minimum wage after deduction of statutory expenses, then compulsory insurance for disability, due to general illness, for old age and death, as well as health insurance installments.
The mandatory insurance contributions for persons working under a civil contract and insured during the month on another basis in an amount equal to or exceeding the minimum wage for the country, are:
- Pension fund of the State Social Insurance - for disability, general illness, old age and death (for persons born before January 1, 1960) - in the amount of 11.02% for the insurer and 8.78% for the insured;
- Pension fund of the State Social Insurance - for disability, general illness, old age and death (for persons born after December 31, 1959) - in the amount of 8.22% for the insurer and 6.58% for the insured;
- Additional mandatory pension insurance in the Universal Pension Fund (for persons born after December 31, 1959) - in the amount of 2.8% for the insurer and 2.2% for the insured;
- Health insurance - in the amount of 4.8% for the insurer and 3.2% for the insured.
Taxes
Executors under a civil contract are obliged to declare to the contracting authority whether they are insured and for what amount on other grounds, so that the following things are taken into account when calculating the fee:
- Individuals who are registered as self-insured receive the gross amount specified in the contract, without deductions for insurance and tax. They themselves have the obligation to pay and declare their monthly insurance and taxes;
- Persons who, even on several grounds, are insured for less than minimum wage in the month of payment of the fee, do not pay insurance contributions;
- Persons who are insured on several grounds are obliged to pay insurance up to the maximum insurance income for the country, which as of April 2022 is BGN 3,400, i. e. if the person is already insured on another basis above the threshold of BGN 3,400, no insurance contributions should be withheld from the additional remuneration under the civil contract;
- Pensioners working under a civil contract are required to have health insurance if their insurance income is equal to or exceeds the minimum wage, but insurance contributions to the State Social Insurance Fund and Supplementary Mandatory Pension Insurance are optional. In the case of civil contracts, there is a statutory recognized expenses (amount that is not subject to insurance and tax), which are in the amount of 25% for income from exercising a free profession or remuneration from non-employment legal relations according to Art. 29, paragraph 1, item 3 of the Law on Personal Income Taxes. After deducting the legally recognized expenses, the amount received is called insurance income, which is taxed with the mandatory insurances at the executor's expense. After deducting the insurance contributions, the amount received is subject to 10% income tax, according to the provisions of the Law on Personal Income Taxes.
The insurance contributions are declared by the contractor every month with a declaration form 1 and 6 by the 25th of the month following the month of remuneration payment. The tax is declared quarterly with a declaration under Art. 55 of the Law on Personal Income Taxes by the end of the month following the corresponding quarter of the year.
Executors under a civil contract are obliged to submit an annual tax return by April 30 of the following year. In the annual tax return, the income from all legal relationships of the person during the calendar year is included. For this purpose, each employer or contractor issues a service memo under Art. 45 of the Law on Personal Income Taxes for the respective amounts paid to the person during the calendar year.
03.05.2023
OVER 14,400 UNEMPLOYED AND INACTIVE PERSONS CAN START WORK UNDER COMPONENT 3 "EMPLOYMENT" OF THE "STARTING A JOB" MEASURE OF THE HRDP
Over 14,400 unemployed and inactive Bulgarian citizens can start work under Component 3 "Employment" of the "Starting a job" measure of the Human Resources Development Program. The component is open for application by the HRDP Managing Authority, the Employment Agency being an eligible candidate. The budget of Component 3 is BGN 224 million, co-financed by the European Union. Over BGN 206 million will be directed to the implementation of projects in underdeveloped regions, and over BGN 17.7 million will be directed to regions in transition.
Inactive and unemployed participants will be included in the activities under Component 3, with 14,400 people expected to have a job upon leaving the operation, including as self-employed. Unemployed and inactive persons can be included in employment with employers from all economic sectors, with the exception of "Agriculture, forestry and fisheries", "Activities of households as employers; Undifferentiated activities of households in the production of goods and services for own consumption' and 'Activities of extraterritorial organizations and services'. Municipalities and municipal enterprises are also eligible employers.
With Component 3 "Employment" the inclusion of inactive and unemployed people in employment will be ensured, and the period of subsidized employment will depend on the hiring of employees from the relevant target group. For the unemployed and inactive persons, subsidized employment will be provided for a period of up to 6 months. For unemployed and inactive disadvantaged participants, employment support will be for a period of up to 12 months. Unemployed and inactive people with permanent disabilities and degree of disability 75 and above 75% will be able to be appointed under the project for a period of up to 24 months. All participants in the measure will be informed and consulted for inclusion in employment applying an individual approach.
After the end of the project, the employers should keep the employment of at least half of the appointed employees for a period of 50% of the period of the subsidized employment. Employers will have an obligation to keep the employment of at least half of the employed participants with permanent disabilities for no less than 3 months. Employers who retain the appointed employees after the project ends will receive a one-time quarterly incentive.
