26.04.2023
UNEMPLOYMENT IN VRATSA, VIDIN AND MONTANA HAS INCREASED
In two-thirds of the regions in Bulgaria, unemployment increased last year, according to the annual report of the Employment Agency.
Vidin region had the highest reported rate of unemployed last year – 14.1 percent compared to 12.3 a year earlier. Montana, Vratsa, Silistra also have over 10% unemployed.
The municipalities with the highest average annual unemployment rate - 4 times above the average last year - were Makresh - 71 percent, Dimovo - 58 percent, Ruzhentsi - 39 percent, and all three are in the Vidin region.
Those newly registered in the labor offices last year were 264,000. The largest number of them came from the "Services" sector – 124,000. Statistics report that the long-term unemployed were 35,500 or one in four unemployed, such as in the regions of Vidin, Montana , Vratsa and Shumen they are the most.
There are 62,000 people over the age of 50 registered in the labor offices, nearly 5,000 of them in the Blagoevgrad region, 4,000 in Plovdiv and over 3,000 in Pleven, Pazardzhik and the capital.
25.04.2023
WHAT ARE THE HIGHEST PAID PROFESSIONS IN BULGARIA
Bulgaria remains the European member state with the lowest labor costs, but at the same time it is also the country in the EU with the fastest rate of increase in wages, according to data from the European Statistical Office Eurostat for 2022.
Where are the highest salaries?
The highest wages are received by those employed in the "Information and Communication Technologies" sector. On average, they already exceed BGN 4,400. They are followed by the "Energy" sector, where the average remuneration is over BGN 2,900.
Third in terms of wages are professions in the field of finance and insurance activities. Their gross salary for the last quarter of 2022 for Bulgaria is almost BGN 3,000. Those working in the mining industry are also among the best paid in the country - over BGN 2,400.
On the other side, the lowest paid are the employees in the hotel and restaurant industry. Their remuneration is between BGN 1,000 and 1,400. However, these are also the sectors with the highest share of the gray economy. In addition to them, those working in the "Water supply" sector also have low wages. sewerage services, waste management and remediation'. Their average gross salary is BGN 1,356. Compared to others, salaries in construction are also low - BGN 1,360 and in transport - BGN 1,486.
Almost BGN 1,500 is the remuneration in "Administrative and auxiliary activities". It is noteworthy that in the "Culture, sports and entertainment" sector there is an increase compared to the first quarter of 2022 - from 1,300 the average gross salary has become 1,600 BGN. The salary of those working with real estate is almost the same - 1,633 BGN.
In the "Public Administration" sector, the increase has also jumped significantly - from BGN 1,700 to BGN 2,240.
Over 2,500 BGN are received by those working in the field of "Professional activities and scientific research", the salary of those working in education is 2,165 BGN.
For 2022, salaries have increased by 16.6%
The average gross salary in the country has increased significantly in the last quarter of 2022 - by 16.6% compared to a year earlier or - the average gross monthly salary for October 2022 is BGN 1839, for November - BGN 1851, and for December – 1,947 BGN, according to data from the National Statistical Institute.
The growth is the highest since 2008 and comes amid rapidly rising consumer prices and a tight labor market that has left many employers short on workers. Thus, wage growth almost caught up with inflation, which in the months of October - December was around 17 - 18% on an annual basis.
The largest increase was in the economic activities "Agriculture, forestry and fisheries" - by 23.4%, "Production and distribution of electric and thermal energy and gaseous fuels" - by 23.1%, and "Other activities" - by 22.1%.
In the "Agriculture, Forestry and Fisheries" sector, the remuneration at the beginning of 2022 was slightly over 1000, and at the end it amounted to over 1300.
Regional inequalities
The data of the National Statistical Institute also note the regional inequalities in pay. For example, in the last quarter the average salary in Sofia exceeded BGN 2,500, while the national average was BGN 1,947 (gross). The difference is nearly 40%.
In all other regions, average wages remain below the national average.
After the COVID-19 pandemic
The Institute for Market Economy thoroughly researched the average gross monthly salary of employed persons in the 265 municipalities of the country - this includes both those employed in the private and public sectors. After the COVID-19 pandemic, the year of recovery, it turns out that salaries in the Chelopech municipality were the highest for the whole of Bulgaria - BGN 2,930 (average gross monthly salary). In second place is the average salary of Kozloduy municipality (BGN 2,431), followed by Pirdop municipality (BGN 2,205) and Stolichna municipality (BGN 2,144).
In fifth position is the Radnevo energy center (2040 BGN), and the top 10 in the country is completed by Galabovo (1985 BGN), Devnya (1947 BGN), Panagyurishte (1860 BGN), Elin Pelin (1745 BGN) and Bozhurishte (1717).
For another year, the highest salaries in the country are in small municipalities with large employers - the leaders are the municipalities in the Middle Mountains, on whose territory there is a developed mining and related processing industry, as well as in municipalities with very large enterprises in the energy sector, the authors comment of the study.
24.04.2023
THE LABOR MARKET IN BULGARIA IS TIGHT AND UNCERTAIN IN THE COMING MONTHS
The labor market in Bulgaria in the coming months until autumn will be tight and uncertain. This is indicated by the results of the latest forecast survey of the Bulgarian Employment Confederation, which covers the period April - September 2023.
Employers across the country share the most modest hiring plans since the survey began in 2021.
A third (27%) of the 1,099 companies surveyed plan to increase their workforce, down 16% from the previous six months and down 19% from the same period last year.
36% of employers expect to maintain the number of their employees, and 19% predict to reduce the staff, which is 5% more compared to the previous researched period.
About a fifth of managers (18%) are unsure whether to keep or fire employees, with their share at zero over the past six months. Thus, the net employment rate - the difference between employers who plan to reduce the workforce and those who forecast to increase it - is +8%, or a decrease of 21 percentage points compared to the previous period studied and 32 percentage points less in compared to the same period last year.
Employers in Sofia typically share the most optimistic hiring plans for the period April 2023 - September 2023 with an employment rate of +72%, an increase of two percentage points compared to the previous six months. Companies in Plovdiv and Burgas predict modest team expansion, with +9% and +8% of employers in these regions planning to hire new employees, respectively. In Ruse and Varna, the employment rate registered a drop of two percentage points and is, respectively, +3% and +8% for the next six months.
In terms of the twelve industries included in the Bulgarian Employment Confederation study, the forecasts of the Hospitality and Restaurant and Construction sectors report the largest increase of five percentage points compared to the previous study period, with +10% and +9% respectively from employers plan to hire new employees. By two percentage points, the plans of employers in the "Public and social sector" are increasing, where the employment rate is +7%. Employers in the Information Technology and Outsourcing sectors, which had the most optimistic hiring plans in the previous survey period, reported more modest forecasts for April - September and employment rates of +25% and +9%, respectively. In the sectors "Wholesale and retail trade", "Transport, warehousing and communications" and "Agriculture, forestry and fisheries" the employment rate was +9%, +7% and +3% respectively, which represents a decrease of one percentage point compared to the previous six months.
The rate of hiring employees in the sector "Electricity, gas and water" is maintained (+4), the employment rate in the sectors "Manufacturing" and "Financial and insurance activities, real estate and business services" increases by one percentage point and reaches +11% and +7%, respectively, and the Extractive Industry sector is the only one that forecasts a negative employment rate for the period until September.
According to Nadya Vasileva, chairperson of Bulgarian Employment Confederation, the processes that must start immediately, in parallel with the change of the labor legislation to be adequate to reality, are related to the digitalization of labor processes.
"Those wishing to join the work process should retrain en masse according to the needs of employers, attract the passive groups of desperate people who are not looking for work, and implement a targeted import of people from abroad," commented the specialist.
19.04.2023
HOW SMALL BUSINESSES CAN GET MONEY FOR TRADEMARK REGISTRATION
The Patent Office has announced a grant for small and medium-sized enterprises to protect intellectual property in 2023. Vouchers this year will cover up to 90 percent of the costs and almost all activities that SMEs need to carry out in the process of acquiring protection for their intellectual property property, with the maximum refund amount reaching 1,500 euros.
The Patent Office informs businesses that the EU Office for Intellectual Property foresees a new initiative to increase the budget of the Fund for small and medium-sized enterprises in the EU for 2023. The aim is to support businesses in increasing their competitiveness through better protection and use of intellectual property rights.
Voucher 1 will reimburse up to 90 percent of the cost of intellectual property pre-diagnosis services up to €1,350 (subject to applicable national costs for that service, with a maximum service cost of €1,500). This would allow SMEs to take full advantage of the scan of their IP portfolio and still have the funds to apply for additional IP rights following the recommendations of the IP scan report.
Voucher 2 will cover trademark and design registration at national, regional, European and international level for a maximum of €1,000. The recovery rate will remain at 75 percent for trademarks and designs filed at the national, regional and European level and 50 percent for trademarks and designs filed at the international level.
Voucher 3 for national and European patents, which will extend the possibility of reimbursement of fees for national and European patent filing and prior art research. The amount of the grant and the reimbursement rate are also increased to €1,500 and 75 percent, respectively.
Voucher 4, which will cover 50 percent of the fee for electronic submission of applications for plant varieties at EU level (€225). By providing financial support for the registration of plant varieties, the SME Fund will support SMEs involved in the green and digital transition, while supporting the objectives of the EC Green Deal. There will be no performance period for this voucher as only the application fee will be eligible for refund.
There are two significant changes for 2023 – an increase in the budget and a shorter activation period for each of the four vouchers, reduced to two months with the possibility of extending it to four months. This would help to optimize the implementation of the budget by allowing a faster release of unused funds to SMEs.
A total of 10,350 SMEs applied for funding from the SME Fund, submitting 10,532 applications. Of these, 795 are for voucher 1, and 10,419 for voucher 2.
There were 23,927 intellectual property reimbursement inquiries (intellectual property diagnostics - IP Scan, trademarks and designs). 8,390 small and medium-sized enterprises have received approval.
The total number of SMEs that applied was 351, which entered 355 applications. Those approved under Voucher 1 (IP-Scan) are 31, and under Voucher 2 (trademark and design) are 348. By type of enterprise: 281 are micro and 55 are small. According to the focus of the company: there are 154 startups, 105 representatives of international companies.
19.04.2023
HOW TO REFUSE AN OFFER TO TERMINATE AN EMPLOYMENT CONTRACT BY MUTUAL CONSENT
The law in our country states that regardless of whether they are fixed-term or open-ended, all types of employment contracts can be terminated by mutual agreement. In practice, even employers (and often employees) prefer to terminate employment contracts with their employees by mutual agreement.
For employers, this is the most profitable option for terminating employment, because in this way they owe the worker or employee less benefits. Also, let's not forget that the termination procedure by mutual consent is the fastest and easiest from an administrative point of view.
On the other hand, when someone's contract is terminated on this basis, they can, in extremely rare cases, successfully win a potential lawsuit against their employer when they choose to contest the termination.
In many cases, employers offer their subordinates a ready-made termination form, which is designed as an agreement to terminate their relationship by mutual consent, and employees do not know what to do to refuse. What are the options for this and what rights do people have?
First of all, you should know that you should read all the details in the documentation - the reason for the dismissal, the legal basis, the notice periods, the benefits you are charged, etc. Also note that you are not required to sign the documents right away.
Ask the officer to allow you time to familiarize yourself with the documents. If you do not feel sure that you understand what is written in the documents, be sure to consult a person who is familiar with the matter to explain in detail what follows in each case.
The proposal and agreement to terminate the contract must be in writing and the agreement must be received by the party making the proposal within 7 days of receiving the request. This means that you have the right within 7 days to consider your decision. If the procedure for this is not followed, the termination of the employment contract will be outside the legal norms.
Since it is a matter of termination by mutual consent, it follows that it is sufficient not to write the offer, which will be quite sufficient to make your refusal. There are no additional requirements in law to provide reasoned answers as to why you did not accept this offer. If someone tries to pressure you and make it difficult with such demands, then you should know that this action on their part is absolutely illegal.
The same applies to employers, when the initiative to terminate the contract by mutual agreement is on the part of the worker or the employee - there is no requirement that the employer immediately decide on the proposal made, and there is no reason to ask him for reasons in case of a possible refusal to accept.
In cases of lack of any response from any of the parties, this is tantamount to tacit refusal. If one of the parties agrees to the termination, but wants the termination of the contract to be on a different date, it is again not considered a mutual agreement.
Reference:
Art. 325, para. 1, item 1 of the Labor Code
18.04.2023
COMPANIES ARE NO LONGER LOOKING FOR IT PROFESSIONALS
Companies are less and less looking for IT specialists. Job postings in this sector continue to decline for the sixth month in a row, data from JobTiger show. For March, there were 460 fewer offers, an 8% drop, for such positions. Over the year, the drop in IT specialist listings is 43% or 3,450 fewer offers than in March 2022.
At the end of last month, companies posted about 52,000 job offers on the leading sites. Their number has increased by 11% compared to the previous month of February. On an annual basis, offers are 1,200 fewer (-1%).
In almost all sectors there is an increase in advertisements. The only exception is the "IT" sector, the company reports.
The announcements in the "Accounting, audit, finance" sector are almost unchanged. Despite reporting a 0.5% drop, there were only 15 fewer listings than the previous month.
The ads in the "Hospitality and restaurant" sector continue to show the greatest growth. They are 2,670 more than in February, which is an increase of 36%, and their total number in March is 10,000.
Following it in terms of growth are the sectors "Trade and sales" (1770 offers more, 17% growth), "Manufacturing" (590 offers more, 8% growth), "Administrative and service activities" (480 offers more, 10% growth) , "Logistics & Transportation" (400 more offers, 9% growth), "Construction" (190 more offers, 7% growth), "Marketing & Advertising" (100 more offers, 7% growth) and "Healthcare & Pharmacy" (60 offers more, 3% growth).
Share distribution
As a share, the first place in terms of number of job advertisements is the sector "Trade and Sales" with 22%, followed by "Hospitality and Restaurant" (18%) and "Manufacturing" (15%).
Followed by the sectors "Administrative and service activities" (11%), "Logistics and transport" (9%), "IT" (8%) "Construction" (5%), "Accounting, audit, finance" (4.4%), "Healthcare and Pharmacy" (3.8%), "Marketing and Advertising" (3%) and "Art" (1%).
Work from home
According to the analysis, offers for working from home and/or telecommuting continue to decline. In March, there was a decrease of 5%, with their number being 4,380 (almost 250 less than the previous month). The main reason for the drop during the month in these ads is the decreasing number of offers in the "IT" sector.
The distribution of these offers by sector is: 58% in the "IT" sector, followed by "Administrative and service activities" (16%), the outsourcing industry sectors (14%) and "Trade and sales" (6%).
As a share, for the first time since the end of the pandemic, offers for work from home and/or telecommuting are less than 10% of all listings (9.7%).
Offer by city
The total number of advertisements in the leading regional cities increased by 8%. Growth is observed in each of them as follows: Sofia (5%), Plovdiv (6%), Varna (19%), Burgas (25%), Ruse (12%) and Stara Zagora (8%).
As a share, the ads for the city of Sofia are 41%, and in the other cities are: Plovdiv (10%), Varna (10%), Burgas (4%), Ruse (3%) and Stara Zagora (2%).
Ads suitable for refugees
The number of job postings suitable for refugees rose by 26% in February. The total number of this type of ads is about 3,000, which is a 6% share of all ads.
13.04.2023
MORE TRANSPARENCY AND LESS RED TAPE FOR COMPANIES TO IMPROVE THE BUSINESS ENVIRONMENT IN THE EU
The European Commission has adopted a proposal for a directive that will make it easier for companies to expand their use of digital tools and processes in EU company law. The aim of the proposal is to facilitate the cross-border activities of companies and to improve the transparency and trust of businesses by providing public access at EU level to more information about companies. It will also lead to a reduction in red tape for businesses operating cross-border, saving around €437 million in administrative burden annually, thanks to an EU company certificate or the application of the one-time principle. The proposal will contribute to the further digitalisation of the single market and help companies, in particular small and medium-sized enterprises, to do business in the EU.
Reduction of bureaucracy and administrative burden
To reduce red tape and administrative burdens for cross-border businesses, the proposed rules include:
application of the one-time principle, so that companies do not have to re-submit information when establishing a branch or a company in another Member State. Relevant information can be exchanged through the Business Registers Interconnection System (BRIS); an EU company certificate containing a core set of company information that will be available free of charge in all EU languages; a multilingual EU standard form of digital power of attorney, with which a person will be authorized to represent the company in another Member State; eliminating formalities such as the need for an apostille or certified translations of company documents.
Improving transparency and trust in cross-border business activities
The proposal updates the existing EU company rules (Directive (EU) 2017/1132) to further adapt them to digital developments and new challenges, and to boost growth and competitiveness in the single market.
To ensure greater transparency and trust in companies, the proposed rules aim to:
ensuring that, through BRIS, important information about companies (e.g. on partnerships and groups of companies) is publicly available, especially at EU level; facilitating the search for EU company information by enabling searches through BRIS and simultaneously through two other EU systems linking national beneficial ownership and insolvency registers; ensuring that company data in business registers is accurate, reliable and up-to-date, for example by ensuring that company information is checked before it is entered in business registers in all Member States.
Next steps
The proposal will now be discussed by the European Parliament and the Council. Once the directive is adopted, member states are proposed to have two years to transpose it into national laws.
Context
Companies are at the heart of the single market. Thanks to their economic activities and investments, including in a cross-border context, they play a leading role in contributing to the EU's economic prosperity and competitiveness and in realizing the Union's twin transition to a sustainable and digital economy. To this end, companies need a predictable legal framework that favors growth and is adapted to deal with new economic and social challenges in an increasingly digitized world. The proposed measures will apply to around 16 million limited liability companies and 2 million partnerships in the EU.
The proposal envisages the second step of the digitization of EU company law. The 2019 Digitization Directive (EU) 2019/1151 ensures that company law procedures can be carried out online, and in particular that companies can be incorporated online. The proposal complements this directive and aims to increase the availability of information on companies, in particular at EU level, and to remove administrative obstacles when companies and authorities use this information in cross-border situations. Overall, the proposal encourages digital-by-default solutions when accessing or using company information in interactions between companies and business registers or authorities. The proposal will also rely on the use of certificate services and ensure that solutions such as the EU company certificate are compatible with the upcoming European digital identity wallet.
It will contribute to the digitalisation objectives set out in the communications Digital Compass 2030: The European Path to the Digital Decade and Digitizing Justice in the EU - Toolkit of Opportunities, and will facilitate the cross-border growth of SMEs in line with the Update the new industrial strategy for 2020 and Strategy for the place of SMEs in a sustainable and digital Europe.
As announced in the Commission's 2023 work programme, the proposal is one of the main actions under the policy priority Europe fit for the digital age.
For more information
Q&A: Commission proposal for a directive to extend the use of digital tools and processes in EU company law
Website - Company Law and Corporate Governance
Proposal for a directive to further expand and update the use of digital tools and processes in the field of company law
Annex - Proposal for a directive to further expand and update the use of digital tools and processes in the field of company law
12.04.2023
BAN ON WORKING ELSEWHERE AFTER WE LEAVE
One of the most common cases that workers face recently is that they find clauses in their employment contracts that commit them not to work elsewhere for a while or to pay benefits if they start working for a competitor.
For example, a clause according to which the worker or employee undertakes, upon termination of the employment relationship with the employer, regardless of the legal basis for this, not to work in employment or civil relationships in a competing company for a period of one year.
Should we be worried about starting work in another place in the presence of a similar agreement in our previous contract, and is a clause in an employment contract with the subject of an obligation of the employee upon termination of the employment relationship with the employer not to enter work on labor and civil matters void at all relationship in a competing firm?
It should be clearly and categorically stated that a clause in the employment contract, by virtue of which the performance of competitive activity by workers or employees is restricted for a certain period after the termination of their employment contract, is concluded in violation of the constitutionally recognized right to work (in particular the norm in the Constitution of the Republic of Bulgaria, which declares the freedom of choice of profession and place of work of every citizen), as well as being contrary to the law and it is null and void.
Likewise, a clause that imposes civil liability on a worker or employee in the event that, after termination of employment, does not comply with the requirement not to enter into employment or civil relations with a competing company, is null and void due to conflict with the law.
Such clauses contradict both the Constitution of the Republic of Bulgaria and the provisions of the Labor Code, according to which the waiver of labor rights is invalid.
The clause according to which the worker or employee owes compensation in the event that he starts working for a competing employer within a certain agreed period after the termination of the employment contract is also null and void.
The right to work is regulated by a number of international, European and national laws.
The Universal Declaration of Human Rights states that everyone has the right to work, to free choice of employment, to just and favorable working conditions, and to protection against unemployment.
According to the Charter of Fundamental Rights of the European Union, every worker has the right to working conditions that protect his health and safety and respect his dignity. Citizens have the right to work, and the state takes care of creating conditions for the realization of this right. The state also creates conditions for the realization of the right to work for persons with physical and mental disabilities, and every citizen freely chooses his profession and place of work.
According to the Constitution of the Republic of Bulgaria, citizens have the right to work, and the state takes care of creating conditions for the realization of this right and creates conditions for the realization of the right to work for persons with physical and mental disabilities.
Every citizen freely chooses his profession and place of work, and employees have the right to healthy and safe working conditions, to a minimum wage and to pay corresponding to the work performed, as well as to rest and leave under conditions and in the order determined by law.
Reference:
Art. 23 of the Universal Declaration of Human Rights
Art. 15 and Art. 31 of the Charter of Fundamental Rights of the European Union
Art. 48 of the Constitution of the Republic of Bulgaria
Art. 8, para. 4 of the Labor Code
12.04.2023
THE AGENCY FOR PEOPLE WITH DISABILITIES FINANCES UP TO BGN 20,000 PROJECTS OF EMPLOYERS FOR THE EMPLOYMENT OF PEOPLE WITH DISABILITIES
Employers can receive up to BGN 20,000 for financing projects to ensure access to existing or new jobs for persons with permanent disabilities of working age. The same amount will finance proposals for adapting existing workplaces and for equipping new workplaces for people with permanent disabilities of working age.
The funds are allocated by the Agency for People with Disabilities under the National Program for Employment of People with Disabilities. Employers can receive BGN 2,000 for vocational training of one employee with disabilities. We draw the attention of all potential beneficiaries to the fact that the National Program for Employment of People with Disabilities has been updated as of March 29, 2023.
Project proposals can be submitted until September 30, 2023 to the Agency for People with Disabilities, through a licensed postal operator or electronically to ahu_zaetost@mlsp.government.bg.
You can see more details on the website of the Agency for People with Disabilities, under the heading: Projects/programs, here.
11.04.2023
THE BNB RAISED THE INTEREST RATE FROM APRIL 1
The BNB announced another increase in the main interest rate. From today, the simple annual interest will be 2.47 percent. This is the seventh consecutive increase in the main interest rate since October.
From March 1, the interest rate was also raised, becoming 2.17 percent, and from February 1 to 1.82 percent. From January 1, the main interest rate was increased to 1.42%, and from December 1 - to 1.30%. In October it was set at 0.49% and in November it rose to 0.59%.
The main interest rate was last different from 0.00 on January 1, 2016, when it was 0.01%.
The value of the main interest rate matters, but only in some limited cases. Most of all, main interest rate is used to calculate the penalty or statutory interest on late payment. The calculation is done by adding 10% to the base interest rate.
Due to the growth of the main interest rate, from January 1, the legal interest for overdue monetary obligations of citizens, companies became 11.42 percent per year.
In our country, interest for overdue payment is regulated by the Law on Obligations and Contracts and Resolution of the Council of Ministers No. 426 of December 18, 2014.
It is written in them that the so-called penal interest, which is applied to all public obligations (taxes, insurance, fees, etc.), is formed twice a year - on January 1 and July 1, as to the base rate, which is 10 percent, the amount of the main interest rate determined by the Bulgarian National Bank is added. Since it was 1.42 percent in January, the legal interest for overdue monetary obligations, which is also often applied in contracts between citizens and businesses, reaches 11.42 percent per year.
