01.02.2023
WORK INTERNSHIP IN WORKING ON A CIVIL CONTRACT
It often happens that citizens ask whether work experience is accumulated when they work on a "freelance" basis.
The questions are of a very different nature, delineating different hypotheses related to work during paid annual leave, work during maternity leave and many others related to putting in some kind of work in the most diverse form. What do the regulations in the Bulgarian legislation regarding the length of service in such situations regulate?
Let's first clarify what "freelance work" means, or rather what the questioners who use these words mean. Royalty generally means monetary compensation paid for the work of freelancers or creatives - such as writers, translators, artists, actors, teachers, lawyers, etc. Payment of fees in the form of royalties usually comes in two forms - as a percentage of sales or as a one-time payment.
In fact, when someone works "on a freelance basis" they often mean that they are working on a civilian contract. In these situations, in practice, the rules of procurement and production contracts are used in the sense of the Law on Obligations and Contracts. The employment contract refers to remuneration. Therefore, you cannot work under an employment contract and receive a fee.
Work under a civil contract could in no way affect the length of service, including during maternity. However, it leads to the accumulation of a longer insurance period, which will be reflected in a much later stage with a view to receiving a higher amount of pension for insurance period and age.
That is why work under a civil contract does not accumulate work experience, but only insurance experience. If, for example, the mother, during the period of her maternity leave, works on a civil contract, this form of employment does not lead to an interruption of her work experience, nor to an interruption of the payment of the cash benefit for maternity.
According to the Social Insurance Code, persons insured for general illness and maternity are entitled to cash compensation for pregnancy and childbirth and for raising a child up to the age of 2, instead of remuneration, if they have 12 months of insurance experience as insured for this risk .
When a person insured for general illness and maternity, during the period of leave for pregnancy and childbirth or for raising a child up to the age of 2, receives cash compensation, taking a job without an employment relationship (civil contract) is not an obstacle to receiving of the monetary compensation.
It is important to clarify that this opportunity is given not only during the use of pregnancy and childbirth leave, but also during the use of the additional paid leave for raising a child up to the age of 2.
Reference:
Art. 48a and Art. 52a of the Social Security Code
Art. 164 of the Labor Code
31.01.2023
WHAT ARE THE RISKS FACING COMPANIES THIS YEAR?
The macroeconomic development of the country (40%), the interruption of business activity (31%) and the energy crisis (31%) are the three biggest risks facing Bulgarian business this year. This is according to the 12th annual study of key business risks around the world, based on the opinion of more than 2,700 experts from 94 countries, including CEOs, managers, brokers and insurance experts, of Allianz Global Corporate & Specialty (AGCS).
For domestic companies, the unstable political environment, the crisis in Ukraine, financial policy and rising prices are among the most worrying factors affecting business. Cyberattacks in the country are also not neglected, climbing 5 positions up the ranking and in 2023 already occupying 4th place (9th place in 2022). A new risk for companies is also appearing on the Bulgarian scene, namely theft, fraud and corruption (9% of respondents, position No.10).
"For the second year in a row, the Allianz Risk Barometer shows that companies are most concerned about growing cyber threats and business disruption. At the same time, they identify inflation, the impending recession and the energy crisis as immediate threats to their business. Companies in Europe and in particular in the US are worried about the current "permacrisis" arising from the effects of the pandemic, the economic and political impact of the ongoing fighting in Ukraine. This is a stress test for the sustainability of any company," summarizes AGCS CEO Joachim Müller.
For the second year in a row, cyber threats and business interruption are among the top concerns for companies globally (both with 34% of all responses). However, macroeconomic indicators such as inflation, instability of financial markets and the looming recession climb by 7 points in this year's edition as well and occupy the 3rd position. A new factor also appears on the scene, namely the impact of the energy crisis, which occupies the 4th position in the ranking among 22% of the respondents. All this is due to the global economic and political consequences of Covid-19 and the military actions in Ukraine.
These pressures require immediate and decisive action by companies. This explains why factors such as natural disasters (from #3 to #6), climate change (from #6 to #7), and pandemics (after vaccines contributed to the end of restrictions (from #4 to #13)) fall by down several positions in the 2023 report. Political risks and violence are back in the top 10 global risks, taking 10th place, while the lack of skilled labor rises to No. 8 in the ranking. Changes in legislation and regulations remain a key risk and retain their No. 5 position, while the potential threat of fires and explosions drops two places to No. 9.
Cyber incidents
Cyber incidents, such as IT outages, ransomware attacks or data breaches, have been identified as the biggest risk to businesses globally for the second year in a row - the first time this has happened. In 19 different countries, including Canada, France, Japan, India and Great Britain, it is listed as the greatest danger. It's also the risk that small companies with annual revenue of $250 million are most worried about.
“For many companies, the cyber threat is still higher than ever and cyber insurance claims remain high. Large companies are used to being targeted, and those with proper cyber defenses are able to fend off most attacks effectively. Observations show that more and more small and medium-sized companies are also affected. However, they tend to underestimate their vulnerability and need to continually invest in strengthening their cyber controls,” said Shanille Williams, AGCS Board Member and Corporate Chief Insurance Officer responsible for cyber insurance.
The frequency of attacks remains high in 2023. The average cost of a data breach is an all-time high of $4.35 million, expected to exceed $5 million in 2023. The conflict in Ukraine and the wider geopolitical tensions raise the risk of a large-scale cyber attack by sponsored individuals. In addition, there is also a growing shortage of cybersecurity professionals, which is a challenge when it comes to improving security.
According to the survey, business interruption, ranked No. 2, remains one of the biggest risks in 2023 as many business models are vulnerable to sudden shocks and changes, which in turn impact profits and revenues. of the companies. Business interruption is the #1 risk in countries such as Brazil, Germany, Mexico, the Netherlands, Singapore, South Korea, Sweden and the US.
Cybercrime (45% of respondents) was cited as the main reason for business interruption, followed by the energy crisis (35%) and natural disasters (31%). Ever-rising energy costs have forced many companies to use energy resources more efficiently, move their production to alternative locations, or even consider a temporary shutdown. The resulting shortage threatens to disrupt supplies in a number of critical industries in Europe, incl. in food, agriculture, pharmaceuticals, etc., although warm winter conditions on the continent and stabilization of gas prices are helping to ease the energy situation.
A possible global recession is another likely source of disruption in 2023, with the potential for supply failures and insolvency, which is particularly worrisome for companies with single or limited critical suppliers. According to Allianz Trade, business insolvency on a global scale is likely to increase significantly in 2023: +19%.
Macroeconomic malaise
Macroeconomic developments - inflation and instability in economic and financial markets - ranked as the third biggest risk for companies globally in 2023 according to 25% of respondents (up from #10 in 2022). For the first time in 10 years, this risk appears in the top three. The three main economic zones - the US, China and Europe - are in crisis mode at the same time, albeit for different reasons, according to Allianz Research, which predicts a recession in Europe and the US in 2023.
Inflation is one of the main causes of concern because it eats away at the cost structure and profit margins of many businesses. Like the real economy, financial markets face a difficult year as central banks drain excess liquidity system-wide and trading volumes decline, even in historically liquid markets.
"2023 will be a year of challenges. Economically, it is likely to be a year to remember for many households and companies. However, there is no reason to despair," says Ludovic Subran, Chief Economist at Allianz. "On the one hand, the turnaround in interest rates is helping millions of savers. The medium-term outlook is also much better, despite – or rather because of – the energy crisis. The consequences, beyond the expected recession in 2023, are already becoming clear: a forced transformation of the economy in the direction of decarbonization, as well as an increased awareness of risk in society, strengthening social and economic sustainability."
Increases and decreases in risks
A new factor that appears in the ranking for the first time and occupies the 4th position with as much as 22% is the energy crisis. Some industries in European countries, such as the production of chemicals, fertilizers, glass and aluminum, can rely on only one source of energy - Russian gas, making them vulnerable to price increases or interruptions in energy supplies. If such core industries struggle to survive, the consequences will inevitably be felt further down the value chain in other sectors. According to Allianz Trade, the energy crisis will remain the biggest shock to profitability, especially for European countries. At current levels, energy prices would destroy the profits of most non-financial corporations as pricing power erodes amid slowing demand.
Driven by 2022 being another year of upheaval with conflict and civil unrest, political risks and violence are a new factor in the report, ranking 10th (13%). In addition, companies are also concerned about increasing disruption from strikes, riots and civil unrest as the cost of living crisis grows in many countries.
Despite the drop in the ranking year-on-year, natural disasters (19%) and climate change (17%) also remain top concerns for businesses. In a year that included Hurricane Ian, one of the most powerful storms on record in the US, record increases in temperatures, droughts and winter storms around the world and more than $100 billion in insured losses, they still rank in the top seven global risks.
31.01.2023
CAN YOU WITHDRAW YOUR MONEY FOR SUPPLEMENTARY PENSION?
The funds that accumulate in the funds for additional mandatory and/or voluntary pension insurance are intended to provide an additional pension (apart from the state social insurance pension) and increase the pension income.
The possibilities to withdraw funds from the individual lot after acquiring the right to an additional pension are different for each of the funds, as for universal and professional they are defined by law, and for the voluntary fund it is a matter of choice of the insured person, explain the experts from the Bulgarian Association of supplementary pension insurance companies.
Funds from a universal fund can be withdrawn, one-time or deferred, only in the event that the calculated monthly amount of the pension at the date of its granting is less than 20% of the current amount of the social pension for old age.
The funds from a professional fund can be withdrawn, once or in installments, if the person did not take advantage of the possibility of early retirement from the State Social Insurance or from a professional pension fund and retired under the conditions of Article 68, Paragraph 1 of the Code on Social Security.
The funds from an occupational fund can be withdrawn, once or in installments, and when the insured person has acquired the right to an occupational pension for early retirement, but the calculated monthly amount of the pension at the date of its granting is less than 20% of the current amount of the social old age pension.
30.01.2023
BBD LEASING SUPPORTS BUSINESSES FOR TECHNOLOGICAL RENEWAL OF PRODUCTION FACILITIES
BBD Leasing from the Bulgarian Development Bank Group launched a new product for technological renewal of production facilities. It targets micro, small and medium-sized companies involved in manufacturing, processing and food processing, printing and healthcare. Companies can apply for the lease of production machinery and equipment, incl. medical and energy equipment.
The maximum amount of the granted lease is up to BGN 5 million, and the financing term is up to 84 months with the possibility of a grace period. The companies' deductible is a minimum of 10% depending on their creditworthiness.
Among the requirements for lessees are that they have at least two completed financial years in which they have been operating and have positive equity.
The purpose of the new program is to encourage small and medium-sized companies to invest in production machinery and equipment, with the help of which they will improve the efficiency of their production processes and expand their product portfolio. Through their technological renewal, they will have the opportunity to enter new markets and improve their competitiveness, as well as create new jobs.
The new financial product will assist businesses in improving the energy efficiency of production.
The planned financial support is in sync with the strategic goals of the BDB to ensure access of small and medium-sized businesses to sufficient and diverse financing, as well as support for the export of companies and their integration in foreign markets, reports the Bulgarian Chamber of Commerce and Industry through its website www.infobusiness.bcci.bg.
You will find all conditions for assistance under the program here.
27.01.2023
WHO IS ENTITLED TO A FREE E-VIGNET?
During the first ten days of January of this year, nearly 20,000 free e-vignettes were provided to people with disabilities.
The total number of free vignettes that were given through the Agency for Social Assistance to people with reduced working capacity in 2022 is 222,341. They are for over BGN 21.5 million and are at the expense of the budget of the Road Infrastructure Agency ".
More than 80,000 of the free e-vignettes issued in 2022 expire in January. The National Toll Administration reminds that the validity of a free e-vignette can be checked on the website of Road Infrastructure Agency and BGTOL. The direct link for checking is https://check.bgtoll.bg.
Persons with 50 percent and more than 50 percent reduced working capacity are entitled to a free e-vignette, as well as families raising children with permanent disabilities up to the age of 18 or until they have completed secondary education, but no older than 20- years old. According to the Roads Act, the right is for one car with a power of up to 160 hp. and engine volume up to 2000 cc.
It is recommended that applications for the renewal of free vignettes be submitted when their expiry date approaches. They are submitted to the "Social Assistance" Directorate at the current address - in person, by letter or electronically with an electronic signature. The social services process the documents within 7 days. The Social Assistance Agency sends the processed requests daily to the Road Infrastructure Agency, which issues the e-vignette within the next working day.
Upon transfer of ownership, the free e-vignette does not follow the vehicle. In these cases, the right holder must notify the Road Infrastructure Agency within three working days in order to receive a new free vignette from the Social Assistance Agency. Transfer of ownership refers to the purchase and sale of a vehicle or the scrapping of a car and transfer to a licensed dismantling company with a contract. When the vehicle is scrapped and left for storage on private property, the person is not entitled to be issued a new free electronic vignette until the original validity expires.
In case of difficulties and the need for consultation, those who wish to be issued a free e-vignette through the Social Assistance Agency can contact the customer service center of the National Toll Office at 0700 10 876 or in writing at e-mail: info@bgtoll.bg.
27.01.2023
THE HEALTH CONTRIBUTION FOR THE UNEMPLOYED WILL NOT BE RAISED
People who pay their own compulsory health insurance contributions (e.g. long-term unemployed, who do not receive unemployment benefit and are not insured by the state, etc.) and are not registered as self-insured within the meaning of the Social Security Code will continue to pay BGN 28.40.
The minimum insurance income remains unchanged, which is currently BGN 710. According to the Health Insurance Act, the uninsured on other grounds are insured on an income not less than half of the minimum monthly income for self-insured persons. Thus, the health insurance contribution for them is calculated at the rate of 8% on no less than BGN 355 and no more than BGN 3,400 per month.
The deadline for making these contributions is until the 25th of the month following the month to which they refer, the NRA reminds. The health insurance contribution for the month of January 2023 must be paid no later than February 25, 2023. All those who are required to pay their own health insurance contributions must submit a Form 7 declaration to the National Revenue Agency, the revenue agency also reminds.
It is submitted electronically with a personal identification code PIC of the NRA or Qualified electronic signature, through the Portal for electronic services or at the office of the revenue agency at the person's permanent address, by the 25th of the month following the month for which the obligation to pay paying the health insurance contributions on this basis. The penalty for not submitting this declaration is from BGN 500 to BGN 1,000.
The health insurance rights of citizens, who are insured at their own expense, are interrupted if more than three due monthly installments have not been paid in a period of 36 months.
The period is counted until the beginning of the month preceding the month of the provided medical assistance. Citizens' interrupted health insurance rights are restored on the condition that they pay all due health insurance contributions for the last 60 months. Entitlements are reinstated from the date of payment of all due health insurance contributions for that period.
Citizens can check their health insurance status, as well as check periods without health insurance data, through the NRA's electronic service, which is freely accessible on the NRA's Portal.
Clients of the administration can also inquire about the health status by phone: 0700 18 700 (at a price according to the tariff of the relevant operator). The service is automatic and requires only the entry of the PIN via the phone's keyboard. In addition, the system provides data for all months and years for which the mandatory health insurance contributions have not been paid. The telephone health status inquiry is open 7 days a week, 24 hours a day.
26.01.2023
MONEY FOR OWN BUSINESS IS GIVEN TO PEOPLE WITH DISABILITIES
People with disabilities can receive up to BGN 20,000 for starting or developing an independent business. The funds can be used for the establishment of a new enterprise, investment costs, construction and repair works, workplace equipment, training of the staff and the owner of the enterprise, as well as to cover minimum start-up capital.
It is necessary that the candidates have 50 and more than 50% reduced working capacity and not participate as owners or partners in another company. The project proposals are funded by the Agency for People with Disabilities under the National Program for Employment of People with Disabilities and must be sent by 06.03.2023.
The Agency will finance with up to BGN 50,000 projects with a social focus, which aim to stimulate the employment of people with permanent disabilities in a specialized work environment. Enterprises and cooperatives registered in the Register of Specialized Enterprises and Cooperatives of People with Disabilities at the Agency for People with Disabilities can apply for the funds. Funding is granted to ensure adequate working conditions and workplace adaptation for people with permanent disabilities assigned to them. The deadline for submitting documents is 13.03.2023.
The Agency for People with Disabilities will also allocate funds for business-oriented projects, which aim to increase the competitiveness of specialized enterprises and cooperatives of people with permanent disabilities through training and the purchase of new equipment. For the implementation of these activities, employers can receive up to BGN 90,000. Documents must be submitted by March 28, 2023.
The agency will finance with up to BGN 740,000 proposals for the creation of Centers for protected employment. Participants in the competition can be specialized enterprises and cooperatives of people with disabilities, labor and treatment centers or organizations of people with disabilities, registered under the current legislation. The establishment of these centers aims to build work skills and habits of a minimum of 15 persons with multiple permanent disabilities, with mental disorders and/or intellectual disabilities, together with the provision of a minimum package of personal support services. Documents must be submitted by 29.03.2023.
State, municipal, economic and non-governmental organizations, registered under Bulgarian legislation, owning or managing the sites can apply for the construction of an accessible architectural environment of cultural, historical and sports sites. Through the program, ramps, paths for people with visual impairments, signals for people with visual and hearing impairments, etc. can be built or reconstructed. It is also possible to adapt the internal environment of various objects for independent visit and residence of persons with disabilities. Project proposals are submitted until 21.03.2023.
You can see more details about the projects and how to apply on the website of the Agency for People with Disabilities - https://ahu.mlsp.government.bg/.
26.01.2023
WHAT CHANGES TO SUPPORT FOR FAMILIES WITH CHILDREN ARE IN FORCE FROM THIS YEAR?
What are the main changes in the field of social security and the policy to support families with children, which are already in force from January 1, the Ministry of Labor and Social Policy recalls.
Without income test, the following are provided:
One-time aid of BGN 300 for students enrolled in the first, second, third, fourth and eighth grades in the academic year 2023/2024. The aid is for all students, regardless of whether they study in a state, municipal or private school.
On December 15, 2022, the parliament decided that the one-time aid should be given to all students in the primary level of education, as well as in the eighth grade. This happened with the adoption of changes to the Law on Family Benefits for Children. Until last year, the one-time aid was given only to children enrolled in the first and eighth grades. For the academic year 2022/2023, it was also BGN 300.
The amount of the one-time aid is determined annually in the Law on the State Budget for the relevant year, but it is not less than the previous year. The allowance is paid in two installments, with 50 percent of its amount paid after the grant order comes into force, and the remainder paid at the beginning of the second school term if the child continues to attend school.
Nearly 100,000 families of children enrolled in the first and eighth grades for the academic year 2022/2023 were entitled to the planned one-time aid of BGN 300 last year.
Last year, one-time aid was granted to 49,879 families for 50,933 first-graders and to 48,595 families for 49,464 eighth-graders.
Financial support helps parents to purchase some of the basic supplies and clothing needed for students without difficulty. It is obtained in the situation that the child lives permanently in the country and is not placed for upbringing outside the family. It is also provided to students placed in the families of relatives and relatives and in foster families, as well as to a guardian/guardian.
Without an income test, monthly allowances of BGN 200 for raising a child up to one year and monthly allowances for children up to the completion of secondary education, but no more than 20 years of age, when the children are raised by their single adoptive parents, are also provided without an income test.
From this year, grandparents can also take leave after the grandchild turns six months old
Mothers can transfer the use of pregnancy and maternity leave after the 6th month from the birth of the child not only to the father, but also to the grandparents, provided that they are employed or employed.
Adoptive mothers who use leave when adopting a child up to 5 years of age have the same right.
The grandmother or grandfather to whom the leave has been transferred is entitled to compensation from the National Social Insurance Institution until the child turns 1 year old. Its amount is 90% of their average insurance income for the last 24 months.
On December 22, the parliament decided that maternity leave can also be used by grandparents after the child reaches six months of age. This happened after the adoption of the second reading of the provisions of the extended budget law amending the Labor Code.
26.01.2023
A LEGAL AID CENTER WAS OPENED IN SILISTRA
"No person can be deprived of justice because he has no money, because he is sick, because he is under interdiction. But so that what is said does not remain only on paper, there must be places where those in need can meet those who can provide them with legal assistance." This was stated by the Minister of Justice Krum Zarkov at the opening of a new Regional Counseling Center in Silistra at the bar association in the city.
The premises are provided by the city municipality, as the possibility of local authorities providing rooms for regional counseling centers was regulated by the recent changes to the Legal Aid Act proposed by the Ministry of Justice.
The center is the 16th in a row in the country, the others are at the bar councils - Sofia, Veliko Tarnovo, Varna, Stara Zagora, Vidin, Sliven, Haskovo, Kardzhali, Pernik, Pazardzhik, Gabrovo, Pleven, Lovech, Blagoevgrad, Asenovgrad.
The Minister recalled that with the latest changes to the Law on Legal Aid, the circle of people who can use free legal aid financed by the state was expanded.
A total of 12 lawyers registered in the National Register of Legal Aid will provide primary legal aid to the citizens of the Silistren region. They will carry out legal consultations, assistance in filling out documents required by the court, the prosecutor's office, the Ministry of Internal Affairs and the administration. They will be able to be addressed by citizens from vulnerable social groups - people below the poverty line, children at risk, victims of domestic violence, human trafficking, people seeking international protection, placed under guardianship and those whose guardianship is requested, people with disability whose monthly income is not enough to afford a lawyer.
The regional center was opened by the chairman of the Bar Association in Silistra, Dimcho Kyosev, who thanked the chairman of the National Legal Aid Bureau, Natalia Ilieva, for the good cooperation.
25.01.2023
INCREASE IN SALARY AFTER MATERNITY
In practice, a common question asked by workers returning to work after maternity leave is whether they are entitled to a salary increase when other employees in the company have received salary updates one or more times.
Workers often face conflicting answers as to whether they are entitled to an automatic increase in pay or whether the update of the amount should be regulated by other mechanisms.
What is the situation with salary increases after maternity leave and what are the rights of female and male employees in these cases?
Before the specific answer to the question, several clarifications of the provisions in the laws should be made. According to the legislation in Bulgaria, the amount of labor remuneration is determined according to the duration of the work or according to the work done. The amount of labor remuneration per unit of production (labor rate) is agreed between the worker or the employee and the employer and cannot be less than what is provided for in the collective labor agreement. The salary is paid at the enterprise where the work is performed, in advance or in full every month twice, unless otherwise agreed.
The remuneration is paid personally to the worker or the employee according to the payroll or against a receipt or at the written request of the worker or the employee - to his relatives. At the written request of the worker or employee, his remuneration is transferred to a deposit in the bank specified by him.
In the case of conscientious performance of labor duties, the worker or employee is guaranteed the payment of labor remuneration in the amount of 60 percent of his gross labor remuneration, but not less than the minimum wage for the country. The difference up to the full amount of the remuneration remains due and is payable additionally together with the statutory interest.
Knowing the legal regulations, we can also answer specifically the question regarding the increase in remuneration after maternity leave.
If the contract worker is paid the minimum wage, the wage should be increased if the national minimum wage itself was raised during the time the worker was on maternity leave.
If, after raising the levels of the minimum wage for the country, the remuneration is not updated in an amount not less than that of the current minimum wage for the country, then the employer is in violation. In these cases, the employee is entitled to an increase in remuneration. The same applies if there is an increase in the amounts for remuneration agreed with a collective labor agreement, if the worker is a member of the trade union organization that is part of the parties to the agreement.
However, if it is not a question of an increase in remuneration based on this principle, then any increase occurs by individual agreement with the employer or through the mechanisms of the collective labor agreement.
Reference:
Art. 245, Art. 247, Art. 270 of the Labor Code
