23.12.2022

"ODELLO BULGARIA": WE PLAN TO HAVE OUR TEAM IN BULGARIA REACH 600 PEOPLE IN 2023

The Turkish Odelo, part of the Bayraktarlar holding, already has a second operating plant in our country. After the manufacturer of headlights for automotive giants such as Mercedes, BMW and Audi put into operation its first base near Plovdiv in 2019, at the beginning of this year a new factory started operations. It separates the production of automotive parts for new cars, which remains in the first factory, from the production of spare parts, which is realized in the second.

The total number of employees in "Odelo Bulgaria" already exceeds 500 people, and 50 people are currently employed in the new base. The plans are to add another 100 people to this team by the end of next year. The company also has a development center in Sofia, which currently employs about 50 people. For 2023, the goal of the lighthouse manufacturer is to reach a total of 600 people employed in all locations.

The company's main customers are Mercedes, BMW, Audi, Dacia, as well as Porsche and Rolls-Royce.

What are Odelo Bulgaria's plans, how many and what type of specialists it plans to hire, how the company sees the future of the automotive industry in Bulgaria - these and other questions were commented by Dimo Nikolov, Human Resources Manager.

Mr. Nikolov, have you officially opened your new plant near Plovdiv yet?

We have not officially opened, as this is a continuation of our current investment anyway. The plant has been operating since the beginning of this year, with the main idea being the separation of the two parts of the business – serial production and production of spare parts. Projects start their life in the first plant. After the period of serial production of cars, which is about 2 years, the project goes to the factory for spare parts. Each of the customers of the current brands we work for, subsequently buying for any reason a part to replace on their vehicle, will have the full guarantee that it is an absolutely analogous product to the one that was in the vehicle when it was purchased as new. Of course, we have other projects that are quite years old, but fortunately, in this part of Europe where we operate - the Balkans, the 3 big German manufacturers BMW, Audi and Mercedes are quite popular and the cars have quite a long history life.

Are they your primary customers?

They are our main customers at the moment in the aftermarket, plus quite a few more exotic brands like Porsche and Rolls-Royce, but the volumes there are much smaller.

Otherwise, in the factory for serial production, in addition to Daimler, we are currently also producing for Dacia from the Renault group. These are still new projects that have not passed for spare parts.

What is the investment in the new plant?

The investment is again quite serious, almost the same as for the first plant, as it has a very large logistics base, with an office part. The total investment is about BGN 50 million. Of course, it is not a one-off, but ongoing. But the investment that is related to buildings, land and infrastructure is in this order.

How many people will be employed in the new plant? And how common are your employees right now?

Odelo Bulgaria recently appointed its 500th employee. This is the number in the factory for serial production and for spare parts plus the development center in Sofia. It is difficult for me to say in the new production that we have started, how many people will work, because to a large extent the work in it is also supported by the factory, which is for serial production, i.e. departments like "Maintenance", "Logistics" , even purely operational departments such as New Projects, are responsible for both plants. But in terms of pure production, the direct staff is currently around 50 people. This is just the beginning. For next year, we plan to add at least 100 more people to this team. Our plan for 2023 is for the odelo Bulgaria team in all locations to reach 600 people. And so let's continue to add 100 people for the next few years. We are deliberately making a smoother growth, as the automotive industry is both rapidly developing in Bulgaria, and there are quite a few staff. So for next year we are mainly focused on team building and training.

We created an odelo academy in Plovdiv, which continues to create middle and higher level managers. Most people who hold any kind of management position with us come from within. We try to build the teams and train people in what they will actually need in the future on the job.

How do you see the potential and challenges of the automotive industry in Bulgaria?

The infrastructure in Bulgaria is already ready for a large car manufacturer, as we lost a few years ago in the face of Volkswagen. But I already think we are ready and very soon it will happen. I believe that in the next 5 years such a car manufacturer will come to Bulgaria. Who will he be? I have some ideas, but everything is still in preliminary discussions.

How would this affect subcontractors like you?

From the HR director's point of view, it will not affect well as there will be a displacement in the labor market. But surely the effect will be good. The automotive industry developed very dynamically in Bulgaria. Many universities have already responded and started training personnel for the industry.

The other part of the automotive industry that it cannot do without is development. It also "exploded" in the last few years, especially here in Sofia. There are large development centers. Against this background, ours is still a bit more boutique, with a staff of around 50 people. But in reality, when one sees a new Mercedes on the street, the lights on it are designed and manufactured here in Bulgaria. This is the most important part of the business, because we are not just one producer of ishleme, as some Bulgarian companies were in the past. The added value is really very big.

That's why I say we're almost done. Because the automotive industry in Bulgaria produces lights, software, cables, seats, etc. So very soon this will happen.

More information about the company and the currently available positions can be found in the profile of Odelo Bulgaria EOOD in JOBS.bg here.

22.12.2022

HOW DO I CARRY OVER MY HOLIDAY TO THE NEXT YEAR?

The use of paid annual leave can be postponed to the following calendar year by both the employer and the employee:

1. From the employer - due to important production reasons under the condition of Art. 173, para. 5, sentence three;
2. By the worker or employee - when he uses another type of leave or at his request with the consent of the employer.

The Labor Code provides that the worker or employee uses their paid annual leave until the end of the calendar year to which it relates. When the use of the paid annual leave is postponed by the employer for the following year, in this case the worker/employee is provided with the use of no less than half of the paid annual leave due to him for the calendar year. In case of postponement by the worker/employee, he/she may have postponed all or part of the paid annual leave. Leave is postponed at the request of the employee and with the consent of the employer. The consent of the employee and the employer is sufficient for the leave to be postponed for the following year.

When the leave is postponed or not used until the end of the calendar year to which it refers, the employer is obliged to ensure its use in the following calendar year, but no later than 6 months, counting from the end of the calendar year to which it refers lays When the paid annual leave or a part of it is not used until the expiration of two years from the end of the year for which it is due, regardless of the reasons for this, the right to use it is extinguished by statute of limitations.

The law establishes that at the beginning of each calendar year, but no later than January 31, the employer is obliged to notify each worker or employee in writing of the amount of paid annual leave they are entitled to use during the calendar year, including deferred or unused from previous calendar years.

Reference:

Art. 176, para. 1 of the Labor Code

Art. 173, para. 5 of the Labor Code

Art. 176, para. 1, item 2 of the Labor Code

Art. 176, para. 2 of the Labor Code

22.12.2022

BY HOW MUCH DO REAL INCOMES DECREASE IN OUR COUNTRY?

A decline in real incomes in the third quarter of this year, reports the Ministry of Finance. Labor income in the country continues to rise at a double-digit rate, with the average wage in the economy as a whole rising nominally by 14.7% on an annual basis, according to the data from the Monthly Review of the Bulgarian Economy.

Current wage growth is accelerating compared to the previous three months of the year, which is entirely due to the public sector, while nominal wage growth in the private sector is unchanged compared to the second quarter (15.4%). In real terms, the average wage, deflated by the consumer price index, declined by a minimal 0.4% year-on-year. The highest rate of wage growth was observed in trade (17.3%), government (17.3%) and administrative and support activities (16.9%).

Monthly inflation in October was 0.6% according to the Harmonized Index of Consumer Prices, the overview also states. The increase in prices in the group of food and non-alcoholic beverages by 2.4% compared to the previous month has a leading contribution (0.55 percentage points) to the increase of the general index. To a large extent, this is due to higher prices for processed foods and to a much lesser extent for unprocessed foods.

Non-energy non-food goods also reported an increase in price - by 1.9% compared to September, and this was influenced by medicinal products, as well as the seasonal increase in the prices of clothing and shoes. Energy goods recorded a 3.6% decrease in price during the month, after lower prices were recorded both for transport fuels by 2.2% and central gas supply by 30.8%. Services also saw a minimal decrease of 0.2% mainly due to lower prices of air tickets as well as accommodation services.

The annual rate of inflation expectedly started to slow down and reached 14.8% in October. This is due to lower inflation for energy goods and a corresponding contraction of their positive contribution on an annual basis. Together with food, they continued to form about 60% of the increase in the overall index compared to the same month in 2021. Core inflation (the overall index excluding energy and unprocessed food) continued to accelerate to 13.3% on an annual basis.

The annual growth rate of credit to the private sector slowed in September for the first time since the start of 2022, reporting growth of 13.6%, down from 13.9% at the end of the previous month. This is due to the slower growth of loans to non-financial enterprises, while loans to households accelerated minimally.

Corporate loans increased by 11.4% on an annual basis, compared to growth of 12.1% at the end of August. This comes after the growth rates of medium-term loans and overdrafts were negatively affected by a base effect from their larger increases in September 2021. Loans to households increased by 15.3% year-on-year at the end of September at 15.1% at the end of the previous month, driven by the faster growth of consumer loans (13.9% against 13.5% in August). Home loans grew by 18% year-on-year, maintaining their pace from the previous month.

The weighted average interest rate on loans to non-financial enterprises and households rose by 42 basis points to 4.19%, with the main contribution to this being the rate on corporate loans (increase by 58 bps), while the price of consumer and housing loans decreased accordingly with 5 and 3 bps The average return on time deposits remained unchanged compared to August at the level of 0.63%.

21.12.2022

HOW TO GET RID OF A TORN BANK NOTE?

Many people do not know what to do if torn, worn or deformed banknotes and coins fall into their hands. In fact, such banknotes can be exchanged at any bank, incl. and BNB. How this is done is described in Ordinance No. 18 of the BNB on quality control of banknotes and coins. The "Active Users" Association explains what the procedure is.

Before exchange, the bank employee checks the authenticity of the money. If there are suspicions of forgery or intentional damage, this money is seized by the relevant institution and handed over to the BNB for examination, and a document is issued for the "arrest".

Not every note or coin is accepted for exchange. There are criteria for "allowable" damage and these are described in the regulation:

- banknotes that are damaged to a minor extent by written notes, numbers, strokes of a pencil, pen, pen or other type of writing/printing means;

- coins damaged by oxidation or wear;

- banknotes damaged as a result of activated anti-theft devices, which have been found not to be the subject of a crime.

Replacement is done after evaluation

A damaged banknote, of which at least 3/4 (75%) of its area is preserved or the assembled parts of the banknote restore such part of its area, is replaced at full face value;

A damaged banknote, of which at least 1/2 (50%) of its area is preserved, is replaced by half of its face value;

A damaged banknote of which less than 1/2 (50%) of its area is preserved, or the assembled parts of the banknote restore such part of its area, is not replaced;

A banknote assembled from parts of different notes is valued by applying the above rules to each separate part;

A damaged coin, on which the obverse and reverse images are recognized, is replaced at full face value;

If the obverse and/or reverse images are not recognized, the coin is not replaced;

If only the inner circle is preserved and the obverse and reverse images are recognized, the coin is replaced at full face value;

If the metal vapor is perforated or cut, it is not replaced.

Two tips from "Active Users":

- When shopping, if you are returned a worn note or coin, it is best to immediately ask for a more secure token. The merchant must set aside this money and exchange it for new ones at a bank.

- If you find a worn or torn banknote in your wallet, don't try to push it to a cash register, just go to exchange it at the bank office most convenient for you.

21.12.2022

WHAT ARE EUROPEANS' EXPECTATIONS FOR INFLATION AND INCOMES

Consumer expectations for the rate of inflation over the next 12 months rose from September, while they remained unchanged for the next 3 years, the European Central Bank (ECB) said in its October 2022 survey of consumer sentiment.

The aggregate level of expectation is for inflation to grow by 5.4 percent over the next 12 months, while in the previous period consumers' expectations were for an increase of 5.1 percent. As for its growth over the 3-year period, expectations remain unchanged at 3 percent. Uncertainty about the rate of inflation over the next 12 months has increased significantly since the start of the war in Ukraine, the ECB reports.

Consumer expectations for growth in spending and income in nominal terms over the next 12 months are rising. Expected growth in spending continues to outpace that of income.

Consumers expect their nominal incomes to rise by 0.7 percent in this period, while in September their forecasts were for an increase of 0.6 percent. In terms of their nominal spending, consumers expect them to increase by 4.5 percent over the next 12 months, compared to a forecast in September for growth of 4.7 percent.

Expectations for the rate of economic growth over the next 12 months are falling (from -2.4 per cent in September to -2.6 per cent in October), while consumers are predicting that unemployment growth will increase over this period. Expectations increase to 12.5 percent from 12.2 percent in September.

Consumers expect the market price of their homes to increase at a slower rate over the next 12 months. In October, the forecasts were for a price increase of 3.0 percent, while in September they were for a price increase of 3.4 percent.

Consumer expectations are for a continued increase in mortgage interest rates to an average level of 4.7 percent.

20.12.2022

PARAMETERS FOR THE CONSTRUCTION OF RES FOR OWN CONSUMPTION UNDER THE NATIONAL PLAN FOR RECOVERY AND SUSTAINABILITY

Comments and proposals on the parameters can be submitted until 12.01.2023

The Ministry of Innovation and Growth presented for public discussion the documents and application guidelines under procedure BG-RRP-3.006 - "Construction of new RES for own consumption in combination with local energy storage facilities in enterprises".

According to the published information, proposals and comments can be submitted until 12.01.2023 in the information system for management and monitoring of EU funds in Bulgaria HERE.

The total amount of the grant is BGN 200 million, and the funds are distributed proportionally depending on the size of the enterprises and the sectors in which they operate:

• Industry (covers the economic sectors according to the Classification of Economic Activities - KID-2008 B, C, E and F or these are mining and processing industry, water supply and waste management, construction);
• Services (covers economic sectors according to the Classification of Economic Activities - KID-2008 G, H, I, J, L, M, N, P, Q, R and S or these are trade and repair, transport and warehousing, hotel and catering, creation and dissemination of information, telecommunications, real estate operations, scientific research, professional, administrative and auxiliary activities, education, health care, culture, sports and entertainment, etc. activities).

The minimum and maximum amount of grant funding for a specific proposal for the implementation of an investment is from BGN 100 thousand to BGN 1 million, and the maximum amount of requested grant funding for an investment should not exceed the applicant's average annual net sales revenue for the three-year period 2019, 2020 and 2021, respectively:

• 100% for micro-enterprises;
• 60% for small enterprises;
• 25% for medium-sized enterprises, small mid-caps and mid-caps.

The duration of implementation of any investment proposal should not exceed 18 (eighteen) months, counted from the date of entry into force of the financing contract with the final recipient.

Additional restrictive conditions are provided in relation to the intensity of the grant funding and depending on the geographical location of the implementation of the investment:

• 50% for micro-enterprises;
• 50% for small businesses, BUT 45% for applicants from the South West planning region;
• 45% for medium-sized enterprises, small mid-caps and mid-caps, BUT 35% for applicants from the South West planning region.

Who can apply?

• have realized net revenue from sales for the financial year 2021 depending on the category of the enterprise that will apply:
• companies with an average market capitalization (these are enterprises that are SMEs according to financial indicators - have an annual turnover that does not exceed BGN 97,500,000 and/or an asset value that does not exceed BGN 84,000,000, according to Article 3 of the Law on Small and Medium Enterprises, but the average number of their staff is up to 1,500 employees, i.e. they have an average number of staff from 500 people to 1,500 people);
• small companies with an average market capitalization (these are enterprises that are SMEs in terms of financial indicators - they have an annual turnover that does not exceed BGN 97,500,000 and/or an asset value that does not exceed BGN 84,000,000, according to Article 3 of the Law on Small and Medium Enterprises, but the average number of their staff is up to 499 employees, i.e. they have an average number of staff from 250 people to 499 people);
• micro-, small and medium-sized enterprises within the meaning of Art. 3 and Art. 4 of the Law on Small and Medium Enterprises;
• registered no later than 31.12.2019;
• merchants within the meaning of the Trade Act or the Cooperatives Act;

o Micro-enterprises: ≥ 80,000 BGN

o Small enterprises: ≥ BGN 187,000

o Medium enterprises, small companies with an average market capitalization and companies with an average market capitalization: ≥ BGN 750,000

• have applied for support for their main economic activity according to the Classification of economic activities - KID-2008. According to the procedure, applicants can claim support only for the code of their main economic activity according to the Classification of Economic Activities - KID-2008.
• have no obligations for taxes and mandatory insurance contributions within the meaning of Art. 162, para. 2, item 1 of the Tax and Insurance Procedural Code and the interest on them, to the state or to the municipality of the seat of the contracting authority and the applicant, or similar obligations, according to the legislation of the country in which the applicant is established, proven by an effective act of a competent authority or the amount of unpaid due taxes or social security contributions is no more than 1 percent of the total annual turnover for the last completed financial year, but no more than BGN 50,000.
• candidates who, through the built photovoltaic system and facilities for local storage of the produced energy, will supply electricity to buildings/objects in which they simultaneously exercise activity in permissible sectors and in inadmissible sectors under the present procedure, in view of the circumstances, cannot participate, that the separation of activities cannot be guaranteed so that activities in ineligible sectors do not benefit from the grant funding provided under the procedure.

Mandatory conditions that activities must meet in order to be funded:

• To be performed only on the territory of the Republic of Bulgaria;
• The installed power of the built photovoltaic system for own consumption for the implementation of an investment should not exceed more than 2 (two) times the amount of the provided power, according to the applicant's current contract with the electricity distribution company, but not more than 1 MW;
• The local energy storage facilities (batteries) should have a total minimum capacity equivalent to storage with a duration of at least 4 (four) hours for at least 25% of the installed capacity of the photovoltaic system built according to the present procedure;
• The photovoltaic system and local energy storage facilities (batteries) should be built only on roof and facade structures of buildings connected to the power transmission, power distribution or closed power distribution network, and/or on real estate to them, in urbanized areas;
• The investment must be carried out on a building/property that is fully owned by the applicant, and when the property is not owned by the applicant, the applicant must have a document establishing the right to build on the property. The investment cannot be carried out on a building/property that is used by the applicant through a lease or concession.
• The limitations specified in the points above are certified by submitting at the application stage a conceptual design or a technical/working design, prepared by a person with a designer's legal capacity, entered in the relevant register of the Chamber of Engineers in investment design.
• The investment must be performed by one contractor (legal entity).

What are the intended eligible activities?

Construction of new photovoltaic installations up to 1 MW for the production of energy from renewable sources for self-consumption in combination with local energy storage facilities (batteries).

The investment should be maintained by the end recipient in the property where it was originally built for at least 5 (five) years from the final payment. For the specified period, the obligation to use the energy produced by the new photovoltaic installations only for own consumption, including the facilities for local storage of the produced energy (batteries), should also be observed.

The investment should be insured against theft, intentional acts of third parties, fire and other natural disasters and other relevant risks for the period from commissioning to a minimum of 5 (five) years from the final payment.

What expenses will be recognized?

Costs for building a photovoltaic system up to 1 MW for own consumption in combination with facilities for local storage of the produced energy (batteries).

The scope of eligible expenses may include: expenses for the acquisition of durable tangible assets; costs of acquisition of fixed intangible assets; costs for construction and installation of roof/facade/adjacent property; and costs for consulting services of an engineering-technical nature. All stated costs should be necessary and directly related to the built photovoltaic systems in combination with batteries.

All investment costs must be incurred by one contractor (legal entity).

The costs for construction and installation work are only permissible insofar as they are directly related to the realization of the construction of a photovoltaic system combined with facilities for local storage.

Under the procedure, only new photovoltaic installations in combination with batteries (in their entirety) are financed, not new components /separate parts/ with which to replace elements of existing and already built photovoltaic systems and/or batteries.

Please note that interested parties can review the documents and requirements presented for discussion and give their suggestions and comments until January 12, 2023.

20.12.2022

ILO: THE INCREASE IN WAGES DOES NOT LEAD TO AN INCREASE IN INFLATION

A severe inflationary crisis combined with a global slowdown in economic growth – partly caused by the war in Ukraine and the global energy crisis – is leading to a staggering drop in real monthly wages in many countries.

According to a new report by the International Labor Organization, the crisis is reducing the purchasing power of the middle class and hitting low-income households particularly hard.

The "World Wage Level Report 2022-2023: The Impact of Inflation and COVID-19 on Wages and Purchasing Power," as the document is called, shows that in the first half of 2022, monthly wages worldwide were decreased in real terms to minus 0.9% – for the first time in this century, real wage growth worldwide has been negative.

“In 2022, the gap between labor productivity and real wages will be the largest in over 20 years. Labor productivity has been strongly positive for many years, but incomes have stagnated as governments refuse to curb corporate greed, and in many countries the rights to collective bargaining and freedom of association are weakened... The world must no longer tolerate economic policies that is dictated by discredited academic theory of those economists and politicians who refuse to face reality. The world needs a new social contract, at the center of which are jobs and decent pay."

This was stated by the Secretary General of the International Labor Confederation, Luca Visentini, categorically denying the theories launched by some economists and central bankers that wages cause inflation and therefore their growth should be limited.

Estimates among advanced G20 real wages in the first half of 2022 fell to minus 2.2%, while real wages in emerging market G20 countries rose 0.8%, which is 2.6% less than in 2019, the year before the COVID-19 pandemic.

“The multiple global crises we are facing have led to a decline in real wages. This has put tens of millions of workers in dire straits as they face increasing insecurity," said ILO Director-General Gilbert F. Hungbo.

"Income inequality and poverty will increase if the purchasing power of the lowest paid workers is not maintained. In addition, much-needed post-pandemic recovery may be at risk. This could fuel further social unrest around the world and undermine the goal of achieving prosperity and peace for all.”

The cost-of-living crisis adds to the significant wage losses for workers and their families during the COVID-19 crisis, which in many countries has had the greatest impact on low-income groups.

The report shows that rising inflation is having a greater impact on the cost of living for people on low incomes. This is because they spend most of their disposable income on essential goods and services, which generally experience higher price increases than non-essentials.

The report states that inflation also reduces the purchasing power of minimum wages. Estimates show that despite nominal adjustments, accelerating price inflation is rapidly reducing the real value of minimum wages in many countries for which data are available.

According to the analysis, there is an urgent need to implement well-designed policy measures to help preserve the purchasing power and living standards of wage workers and their families.

Adequate adaptation of minimum wage rates could be an effective tool given that 90% of ILO Member States have minimum wage systems in place. Strong tripartite social dialogue and collective bargaining can also help achieve adequate wage adjustments in times of crisis.

Other policies that can ease the impact of the cost-of-living crisis on households include measures targeted at specific groups, such as providing low-income households with vouchers to help them purchase essential goods, or reducing the value added tax on these goods to reduce the burden that inflation places on households while helping to bring down inflation.

"We need to pay special attention to workers at the middle and bottom of the wage scale. Combating the deterioration in real wages can help sustain economic growth, which in turn can help restore employment levels seen before the pandemic. This can be an effective way to reduce the probability of recessions in all countries and regions", stated Rosalia Vázquez-Álvarez, one of the authors of the report.

The report, which includes regional and country data, shows that in the first half of 2022, inflation rose proportionally faster in high-income countries than in low- and middle-income countries, resulting in the following regional trends in real wages:

- In the European Union, where job preservation schemes and wage subsidies have largely protected employment and wage levels during the pandemic, real wage growth has picked up to 1.3% in 2021 and has fallen to minus 2.4% in the first half of 2022;

- In Eastern Europe, real wage growth has slowed to 4.0% in 2020 and 3.3% in 2021, falling to minus 3.3% in the first half of 2022;

- In North America (Canada and the United States), average real wage growth fell to zero in 2021 and fell to minus 3.2% in the first half of 2022;

- In Latin America and the Caribbean, real wage growth has slowed to minus 1.4% in 2021 and to minus 1.7% in the first half of 2022;

- In Asia and the Pacific, real wage growth rose to 3.5% in 2021 and slowed in the first half of 2022 to 1.3%. When China is excluded from the calculations – given the country's heavy weight in the region – real wage growth increased by much less – 0.3% in 2021 and 0.7% in the first half of 2022;

- In Central and West Asia, real wage growth rose strongly to 12.4% in 2021, but slowed to 2.5% in the first half of 2022;

- In Africa, data points to a drop in real wage growth to minus 1.4% in 2021 and a drop to minus 0.5% in the first half of 2022;

- In Arab countries, wage trends are tentative, but estimates point to low wage growth of 0.5% in 2021 and 1.2% in 2022.

20.12.2022

€1.39 BILLION FOR ROMANIA UNDER THE REPOWEREU PLAN

Romania will benefit from 1.39 billion euros under the REPowerEU plan to reduce energy dependence on the Russian Federation, Romanian MEP Siegfried Muresan (European People's Party/National Liberal Party) announced, Digi 24 TV reports.

The European Parliament and the Council of the EU have agreed on the final form of the REPowerEU plan, which will allow member states to access a total of €20 billion for energy investment.

Romanian MEP Siegfried Muresan, who is one of the three co-rapporteurs of the European Parliament on the Recovery and Resilience Mechanism and the REPowerEU plan, said at the end of the meeting that the outcome of the negotiations was beneficial for Romania.

"The best news is that we managed to reach an agreement on the REPowerEU plan before the end of the year, as we had promised. This means that REPowerEU will enter into force at the beginning of next year," Mureşan pointed out, specifying that the amount from which will benefit Romania, amounting to EUR 1.39 billion The funds will be used for investments in energy efficiency, reducing dependence on gas imports from Russia, improving energy infrastructure and investing in renewable energy sources.

Mureşan explained that through this new fund, around 20 billion euros are made available to help member states, people, businesses and regions facing the consequences of the crisis caused by the Russian invasion of Ukraine.

The Romanian MEP recalled that the grants under the REPowerEU plan will be added to the approximately 30 billion euros that Romania already receives under the National Recovery and Resilience Plan within the European Recovery and Resilience Mechanism.

The agreement between the European Parliament and the Council of the European Union provides that all member states will receive 20 percent of upfront funding when the European Commission and the Council of the EU approve the new REPowerEU pillars of the recovery plans. It also provides for retroactive funding of energy investments from February 2022, when the Russian Federation invaded Ukraine.

"This is very good news for Romania and the other member countries, which had to take a number of measures to reduce their energy dependence on the Russian Federation. The agreement we reached gives the member states more funds for investment projects in the field of energy security than the very beginning and allows them to cover the costs incurred in the past in the context of the invasion of the Russian Federation in Ukraine, through REPowerEU," said Siegfried Muresan.

The agreement foresees that the remaining unused funds from the Recovery and Sustainability Mechanism - about 200 billion euros - can be used by countries that want to invest more in energy projects. Thus, Member States that have not yet accessed the full credit component of their national recovery and resilience plans will have only 30 days from the entry into force of REPowerEU to notify the European Commission of their intention to access these means. If they do not intend to take advantage of these funds, the countries concerned will lose the advantage of accessing funds from the credit component.

Siegfried Muresan said that for Romania this is very important news, as the country has already announced its intention to access all credits.

The agreement must be formally ratified by the Council of the European Union and voted by the European Parliament to become European law and for REPowerEU to officially enter into force.

The REPowerEU plan aims at a series of measures to rapidly reduce Russia's dependence on fossil fuels and accelerate the environmental transition, while increasing the resilience of the European Union's energy system.

20.12.2022

HOLIDAYS AND WORK: HOW IS HOLIDAY WORK PAID?

For the upcoming holidays, the Executive Agency "Main Labor Inspectorate" reminds workers and employees who will work that they must receive a minimum of double wages for work on a public holiday. The amount of pay is quadrupled if the work on these days is also overtime, as it is also paid with a 100% increase.

According to the Labor Code, public holidays are December 24, 25 and 26, as well as January 1. Their coincidence with Saturdays and Sundays extends the days off with the so-called non-attendance days, which is why there will be rest on December 27 and 28 for Christmas, and on January 2 for New Year's. Work on a non-attendance day is paid as on a holiday, i. e. with an increase only for overtime work and that by 75%.

For those working on an irregular working day or on a day-by-day calculation of working hours, work on holidays, weekends and days of absence is overtime. It must be assigned by the employer with a special order issued at least 24 hours earlier.

In the aggregate calculation of working hours, when scheduled work is performed on holidays, it is not overtime. In these cases, only double wages are paid for work on public holidays.

The Labor Inspectorate advises employees who will work during the holidays not to trust verbal agreements with employers. In order to be able to protect their rights, they must have written proof that they worked on holidays and non-attendance days, such as an overtime order or a named work schedule.

19.12.2022

HOW TO CLAIM CHILD TAX BENEFITS

Until the end of December, parents of children and children with disabilities can benefit from tax relief through their employer in the main employment relationship. For this purpose, they must submit the relevant declaration to him by December 31 of this year. In this case, the employer can reimburse them until the end of January 2023 the withheld tax for 2022, the NRA states.

The calculation of the amount to be received is based on the taxable income of the parents in 2022, and they will receive up to BGN 600 for one child, up to BGN 1,200 for two and up to BGN 1,800 for three or more children. For raising one disabled child, the reduction for this year on the annual tax base is in the amount of BGN 12,000, with the amount to be received being up to BGN 1,200.

Parents of children with 50 and with more than 50% disabilities are entitled to use both tax benefits. For example, for raising a child who is disabled, the parent has the right to tax relief for children in the amount of BGN 6,000 (amount to receive up to BGN 600) and to tax relief for children with disabilities in the amount of BGN 12,000 (amount for receiving up to BGN 1,200). The two tax reliefs are added together, so their total amount can reach up to BGN 18,000 (amount to receive up to BGN 1,800).

In addition to an employer, tax relief can also be enjoyed by submitting an annual tax return to the National Revenue Agency within the period from January 10 to May 2, 2023, and the sums of money will be refunded after verification by the revenue agency within 1 month after the submission of the declaration.

Individuals, including sole traders, who have no income in 2022 or have received non-taxable income, such as maternity and unemployment benefits for example, as well as people with only income subject to final and/or patent tax, cannot benefit from reliefs, but this can be done by the other parent, the NRA reminds.

In the event that the amount of taxable income of one parent is not sufficient for the use of the full amount of the tax relief, the other parent can submit a declaration to the National Revenue Agency for the use of the remainder of the tax relief. The tax relief can also be used for a child who has reached the age of majority or was born in 2022.

One of the most important requirements for the application of the reliefs is that the persons do not have public obligations subject to enforcement. The NRA advises citizens to check their tax account online for liabilities with a personal identification code before using tax relief to avoid inconvenience.

The conditions for using the tax relief for children and children with disabilities are described in detail on the NRA website and the department's Facebook page. Consultations on these issues can be made with the Information Center of the NRA on phone: 0700 18 700 and email: infocenter@nra.bg.