14.07.2022
THREE TIPS FOR ENSURING A BUSINESS DEVELOPMENT STRATEGY THAT WORKS
Development should be among the main priorities in the first 5 years of your business, if you want to secure a stable position in the market.
However, in order to grow your business, you should have a good strategy for it. And to make sure yours is, follow these 3 tips:
In order to realize certain achievements, they must be set as measurable goals. In other words, to have a numerical expression by which you can subsequently compare the initial state and the one registered after a certain period of time. So what metrics do you want your business to grow in? A certain number of sales? A certain number of regular customers? Average monthly earnings given? and other.
Once you've determined what your business's goals are, you need to plan how to achieve them. What measures will you take, how will you monitor their implementation, what resources will you need, etc. Of course, this plan will not be final, but will need regular revision as the situation changes. But with its help, you will be prepared and have a developed framework for action.
If you have selected your employees carefully and trust them, do not keep them out of your development plans. On the contrary, involve them in their development. Leverage the competencies of your staff by assigning them the tasks for which they are best prepared. Seek their opinion and ideas on matters where their knowledge and experience outweighs yours. All this will not only engage your team in the implementation of your business development strategy, but also motivate them to work. And motivated employees are precisely those who will help to realize your aspirations in business.
source: entrepreneur.com
14.07.2022
INSURANCE DURING SICK LEAVE
During a continuous sick leave of an employee, the declared insurance income, according to documents submitted by the employer, is the minimum insurance income, and the remuneration of the employee according to an open-ended employment contract is higher. Is this legal?
Public relations related to state social insurance (SSI) and supplementary mandatory pension insurance (SMPI) are regulated by the Social Insurance Code (SIC), and those related to health insurance - by the Health Insurance Act (HIA).
Insurance income is a basic concept in insurance law. Insurance income is monthly income and is the basis on which insurance contributions are calculated and made.
In the specified case, on the basis of Article 9, Paragraph 2, Item 2 of the SIC, the time of paid and unpaid leave for temporary incapacity for work, leave for pregnancy and childbirth and for the adoption of a child up to the age of 5, as well as paid and unpaid child-rearing leave is considered as insurance service without making insurance contributions.
The insurance income for the purposes of compulsory health insurance is determined in the Health Insurance Act depending on the insured persons. The health contribution is calculated on the insurance income defined in the law.
The regulatory framework that determines the income on which health contributions are due for persons temporarily unable to work due to illness is Art. 40, para. 1, item 5 of the Health Insurance Act. The health contributions for persons temporarily unable to work due to illness, pregnancy and childbirth, on leave to raise a small child in accordance with Art. 164, para. 1 and 3 of the Labor Code (LC) and leave for the adoption of a child up to the age of 5 in accordance with Art. 164b, para. 1 and 5 of the LC are due on the minimum insurance income for self-insured persons. Contributions are for the account of the employer and are equal to the part of the contribution owed by him, being paid by the 25th of the month following the month to which they relate.
It is clear from the cited provision that the income on which health contributions are owed for these persons is tied to the minimum monthly insurance income for self-insured persons and is not proportional to the amount of compensation received from the state social insurance.
In view of the above and in accordance with Art. 9, paragraph 2, item 2 of the SIC for the periods of temporary incapacity for work, no insurance income is determined on which insurance is due in the sense of the SIC, but with the provision of Art. 40, para. 1, item 5 of the Health Insurance Act is regulated insurance income only for the purposes of health insurance in the amount of the minimum insurance income for self-insured persons, determined by the Law on the State Public Insurance Budget for the relevant year.
On the same income, the employer (insurer) is obliged to pay health contributions in an amount equal to the part of the health contribution owed by him (4.8 percent). In the considered hypothesis, for those referred to by the provision of Art. 40, para. 1, item 5 of the HIA periods, namely the periods of temporary incapacity due to illness, pregnancy and childbirth, on leave to raise a small child in accordance with Art. 164, para. 1 and 3 of the LC and leave for the adoption of a child up to the age of 5 in accordance with Art. 164b, para. 1 and 5 of the LC, no insurance contributions are due from and at the expense of the insured person.
According to Art. 5, para. 4 of SIC and Art. 39, para. 1 of the Health Insurance Act insurers and employers should periodically submit data to the NRA in accordance with Ordinance No. Н-13 of December 17, 2019 on the content, terms, manner and order of submission and storage of data by employers, insurers for the insured under them persons, as well as by self-insured persons in accordance with the provisions of the ordinance and insurance legislation. It is in this connection in the Declaration model No. 1 "Data on the insured person" (Appendix No. 1 to Art. 2, Para. 1 of the Ordinance) that the insurance income, on which health insurance contributions are due for the periods of temporary incapacity to work, is filled in a separate field of the declaration - item 17 "Income on which health insurance contributions are due for the persons under Art. 40, para. 1, item 5 of the Health Insurance Act".
14.07.2022
ENTREPRENEURSHIP: 4 LESSONS STARTING YOUR OWN BUSINESS TEACHES US
Opening your own company is by no means a simple undertaking, on the contrary. It is accompanied by so many important details that it is not at all difficult to miss one.
At the same time, as you progress in running your own business, 4 important lessons stand out that are good to know at the start:
There is no point in telling your friends that you are going to start a business. Better launch and then share with them. Of course, if they are part of your target customers, it is important that they know, but let it be when they can already buy your products. After all, no one has ever succeeded in any endeavor just by talking about it.
Don't compromise here. The quality of your product will depend on what kind of raw material suppliers you have, for example. So take your time and be patient when looking for the right partners. If a relationship doesn't suit you, don't be afraid to end it. Don't burn bridges, of course, but don't hesitate either.
There are proven methods that work. At the start it is better to trust them. When you have already gained a stable circle of customers, you can think about improvements to your website, about novelties, a nicer design and anything else that comes to mind. In the beginning, it's important to have a website that works well and is easy for customers to navigate.
If they told you that you would only study for 12 or 16 years, they lied to you. Learning continues throughout life. And if you want your business to work well, develop, win new customers, you yourself as an entrepreneur must develop, improve your existing skills and acquire new ones. Analyze the needs of your company and select courses and trainings that will be useful.
13.07.2022
HOW MUCH LEAVE CAN WE CARRY OVER TO NEXT YEAR?
The use of paid annual leave is regulated in Art. 172 of the Labor Code (LC), according to which the paid annual leave is allowed to the worker or employee all at once or in parts. In Art. 173, para. 1 of the LC stipulates that paid annual leave is used by the worker or employee with written permission from the employer. To use paid annual leave, the employee must submit a written request to the employer. The written permission from the employer is given by an order or other written document that the worker or employee must obtain.
According to Art. 173, para. 5 of the LC, the worker or employee uses his paid annual leave until the end of the calendar year to which it refers. The employer is obliged to grant paid annual leave to the worker or employee until the end of the relevant calendar year, unless its use is postponed in accordance with Art. 176. In this case, the worker or employee is guaranteed the use of not less than half of the paid annual leave due to him for the calendar year.
According to Art. 176, para. 1 of the Labor Code, the use of paid annual leave can be postponed for the next calendar year: 1. by 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/she uses another type of leave or at his request with the consent of the employer.
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 applies - Art. 176, para. 2 of LC. The provision of Art. 176, para. 3 of the LC indicates that when the employer has not authorized the use of the leave in the cases and within the terms under para. 2, the worker or employee has the right to determine the time of its use by notifying the employer in writing at least 14 days in advance.
According to Art. 176a, para. 1 of the LC, 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. In Art. 176a, para. 2 of the LC provides that when the paid annual leave is postponed under the conditions and according to the procedure of Art. 176, para. 1, the employee's or employee's right to use it is extinguished by statute of limitations after the expiration of two years from the end of the year in which the reason for its non-use ceased. The paid annual leave for 2018 must be used until 31.12.2020, after which the right to use it is extinguished by statute of limitations.
13.07.2022
HOW MUCH THEY PAID EMPLOYERS TO KEEP JOBS DURING THE PANDEMIC
Until July 29, employers who used the measure to preserve employment “60 to 40” in the month of June must submit to the Employment Agency the reports on the workers involved.
The measure came into effect in March 2020 and ended at the end of last month.
According to the operational information of the NOI, as of June 23, the funds paid to preserve jobs during the pandemic amounted to BGN 1.931 billion, the scheme was used by 13,700,000, which saved 335,000 employees.
The latest interim report of the NSI on the funds paid under the measure shows that the largest share of the total number of jobs saved is in the "Manufacturing industry" sector. Nearly 42 percent of the retained workers are concentrated there. The amounts paid are approximately the same percentage. About 20 percent of the reserved jobs and slightly more than 16 percent of the money paid are in the "Hotel and restaurant industry" sector.
The months in which the largest payments under the "60 to 40" measure were made are January, February and March 2021 - BGN 123 million per month. Then 150,000 workers were retained.
For comparison, in May 2022, 14 million BGN were paid under the measure for 20,000 employees, and the money went to 930 employers.
Over 60 percent of employers and nearly 70 percent of workers participated in the measure for a period of up to 10 months.
57% of businesses had up to 9 employees, and 1.5% - with 250 or more insured.
13.07.2022
YOUNG PEOPLE ARE HARDEST HIT BY JOB LOSSES DUE TO THE ECONOMIC IMPACT OF COVID
The European Commission has published its Employment and Social Development in Europe (ESD) Review 2022. Among other findings, the report shows that young people are among the hardest hit by job losses during the economic crisis caused by the COVID pandemic -19. It also shows that their recovery is slower than other age groups. Possible explanations are related to the high share of fixed-term contracts and difficulties in finding a first job after leaving school, university or training. The new report helps define and justify the employment and social policies needed to address the challenges young people face in becoming economically independent in the context of a deteriorating socio-economic situation due to the Russian invasion of Ukraine.
Commissioner for Jobs and Social Rights Nicola Schmidt said: Many young people have higher education, digital skills and an active interest in environmental issues. This can help them take advantage of the opportunities of recovery and the digital and environmental transition. 2022 is the European Year of Youth because the European Union is committed to listening to young people, supporting them and improving their chances in life. This also means supporting young Ukrainians who have fled the war by helping them enter the EU education system and labor market.
Based on the latest annual data, the review of the PES found that:
The recovery from the COVID-19 pandemic was not evenly distributed. Young people (under the age of 30) still face significant challenges in finding work or finding work that matches their skills and experience. Although youth unemployment declined in 2021, especially towards the end of the year, it remained 1 percentage point higher than before the crisis (in 2019). Of those in work, nearly 1 in two young people (45.9%) had temporary contracts, compared to 1 in 10 for all those in work (10.2%). In general, young people are more likely to face a difficult social and financial situation. Even before the pandemic, the labor income of young people was more volatile than that of older workers. Households headed by young people face greater poverty, although there are significant differences between EU countries. Young people find it difficult to meet their daily expenses, such as paying bills and rent, and 61% of them worry about finding or maintaining suitable housing in the next ten years. The challenges young people face depend on their level of education and socio-economic background. Young people with a secondary education are 19 percentage points less likely to be in a situation where they are not working, studying or training than those with a lower level of education. For persons with higher education, this risk is 28 percentage points lower. Disadvantaged young people are even less likely to be in employment, education or training. Gender is another factor that leads to inequality among young people. When starting their careers, young women in the EU earn on average 7.2% less than their male counterparts - a gap that widens with age. At EU level, only a small part of this difference - 0.5 percentage points - is the result of women's educational attainment, choice of profession, professional experience and the type of employment contract they have.
Successful policies at EU level to support young people
The ESD review provides an evidence-based analysis of ways to address the challenges young people face. In particular, employment and social policies shall:
to improve the integration of young people in the labor market, to enable young people to acquire skills, to support labor mobility - a building block for a successful and sustainable career, to reduce risks for young people, such as unemployment or illness, poverty and indebtedness, to help young people build material security and acquire property.
Additional EU initiatives to support young people are being prepared. In 2023, the Commission plans to review the Council Recommendation on the Quality Framework for Traineeships, in particular with regard to working conditions. A high-level group is currently looking at ways to improve social protection, including for young people, and will present its findings early next year.
Context
The Annual Review of Employment and Social Development in Europe (ESD) is the European Commission's leading analytical report on employment and social issues. It provides up-to-date economic analysis as well as related policy proposals.
The EU supports young people through a range of policy programmes, including:
The Youth Guarantee scheme, including the Youth Employment Initiative, has had a transformative impact on EU labor markets. The figures show that since 2014, over 36 million young people who were once registered with Youth Guarantee schemes have subsequently been offered work, further education, apprenticeships and/or traineeships. The European Social Fund Plus (ESF+) is the EU's main instrument for investing in people, including supporting youth employment. The new initiative ALMA (from English Aim, Learn, Master, Achieve) is aimed at disadvantaged young people who are not participating in any form of employment, education or training. The €100 billion European Instrument for Temporary Support to Mitigate Unemployment Risks in Emergency Situations (SURE) was launched in April 2020 to address the impact of the pandemic on EU labor markets, including for young people. In 2020, it helped around 31 million people and 2.5 million businesses. In 2021, it supported approximately 3 million people and 400,000 businesses. EU Member States' Recovery and Resilience Plans focus on policies for the next generation as one of their six pillars, in line with the strengthened Youth Guarantee.
08.07.2022
AGENCY FOR PEOPLE WITH DISABILITIES FINANCES PROJECTS FOR THE EMPLOYMENT OF PEOPLE WITH DISABILITIES WITH UP TO BGN 10,000
Employers can receive up to BGN 10,000 for financing projects to ensure access to existing or new jobs for people with permanent disabilities of working age. The same amount will be allocated for proposals to adapt existing workplaces and to equip new workplaces for people with reduced working capacity.
The funds are provided by the Agency for People with Disabilities (APD) under the National Program for Employment of People with Disabilities. It also provides funds for qualification and retraining of employed people with disabilities. Employers can receive up to BGN 1,000 for vocational training of one employee with reduced working capacity.
Project proposals can be submitted until August 17, 2022 at APD, through a licensed postal operator or electronically at ahu_zaetost@mlsp.government.bg. You can see more details on the website of the Agency for People with Disabilities https://ahu.mlsp.government.bg/portal/page/83.
08.07.2022
THE POVERTY LINE RISES BY BGN 91
The poverty line for 2023 should be BGN 504, suggests the retired Minister of Labor and Social Affairs Georgi Gyokov. The increase is BGN 91, as this year the poverty threshold is set at BGN 413. Compared to 2021, the poverty line was raised by BGN 44.
As the poverty line increases, social assistance under the Social Assistance Act and financial support under the Disability Act will also increase, which will have a favorable impact on the vulnerable and lowest-income groups of the population, the reasons for the project say.
In the Medium-Term Budget Forecast for the period 2023-2025, GDP growth of 2.8%, unemployment rate of 4.8% and employment growth from the national accounts of 0.8% are predicted for 2023.
The latest data from NSI for the first quarter of 2022 report GDP growth of 4.5% on an annual basis. For the first quarter, according to labor force surveillance data, the unemployment rate was 4.9%, and employment, according to national accounts data, increased by 1.6% year-on-year.
The use of the poverty line determined in the EU-SILC survey for 2021 and published in 2022 reflects the socio-economic environment in the country, the labor market and the possibilities of the budget. The changes of a socio-economic nature and the contraction of the global economy in 2020-2021 and the first half of 2022 are primarily related to the consequences of СОVID-19, the dynamic macroeconomic environment and the overall impact of the international environment.
The lack of predictability regarding changes in consumption and employment, related to the still available risks of a health nature, the international situation and inflationary processes, require the use of an objective approach in determining the size of the poverty line for 2023 according to the European research methodology "Statistics of income and living conditions (EU-SILC)", which will simultaneously guarantee the adequacy of the statistical information used and ensure policies related to poverty reduction, writes in the reasons for the project.
The proposed value of BGN 504 compensates for the lag behind the national poverty line compared to the "Statistics of Income and Living Conditions (EU-SILC)" survey, increasing by 22% (BGN 91) compared to the amount of the previous year, as for the last 10 years .marks the greatest growth and expands the scope of social assistance.
07.07.2022
THE EUROPEAN COMMISSION ADOPTED A PARTNERSHIP AGREEMENT WITH BULGARIA WORTH 11 BILLION EUROS
The European Commission adopted a partnership agreement with Bulgaria worth EUR 11 billion - it defines the country's investment strategy in the field of cohesion policy for the period 2021-2027. Funds under the cohesion policy will promote the economic, social and territorial convergence in the Bulgarian regions and will help to fulfill the EU's main priorities, such as the ecological and digital transition. These funds will also support policy areas in which Bulgaria has the potential to make progress and reduce regional differences within the country.
The partnership agreement covers the European Regional Development Fund - ERDF, the European Social Fund Plus - ESF+, the Cohesion Fund, the Just Transition Fund, and the European Maritime, Fisheries and Aquaculture Fund.
The ecological transition and reduction of energy dependence
2.4 billion euros from the ERDF and the Cohesion Fund will help Bulgaria achieve its climate goals.
Specifically, €600 million will help increase the share of renewable energy sources to 27% of total energy consumption, as well as reduce energy consumption and greenhouse gas emissions in public buildings. ERDF funding will also be used to recycle 70% of all packaging waste.
In addition, investments will also be aimed at reducing by more than a third (at least 35%) the proportion of the population living at risk of natural disasters such as floods or forest fires.
The FSP will provide €1.3 billion to ensure a socially and economically sustainable transition. The fund will improve the capacity of the affected territories to better use energy from renewable sources.
Catching up with the EU and supporting the most vulnerable regions
The funds will also help Bulgaria improve its basic infrastructure, especially in regions where infrastructure investment is insufficient or absent. Almost half of the total cohesion policy funding (€4.2 billion) will be invested in the north-west, north-central and north-east regions, including in the form of co-financing for the construction of the Shipka tunnel - the first tunnel that will pass through Stara Planina.
EU support for the favorable business environment is also expected to increase the share of innovative small and medium-sized enterprises from 27.2% in 2016 to 32% in 2026 - they will create jobs and contribute to the development of the Bulgarian economy.
Jobs of the future: a more inclusive and digital labor market
Bulgaria will invest EUR 2.6 billion from the ESF+ with the aim of improving access to employment, increasing skills so that people can successfully navigate the dual ecological and digital transition, as well as guaranteeing equal access to quality and inclusive education and training. This includes EUR 315 million to support youth employment and EUR 630 million for social inclusion measures, of which EUR 136 million is earmarked for combating child poverty. 221 million euros will be directed to the socio-economic integration of marginalized communities, for example the Roma.
Thanks to EU funding, early school leaving is expected to fall from 12.8% to 7% by 2030. Adult participation in learning activities is expected to rise from 24.6% to 35.4%, while employment is expected to to increase from 73% to 79%. The population at risk of poverty and social exclusion is expected to decrease by 0.8 million people (from 2.3 to 1.5 million people).
Finally, Bulgaria aims to exceed the target set at the Porto Summit in terms of employment rates, and the number of people at risk of poverty and social exclusion in the country should decrease by almost 800,000.
Sustainable fisheries and sustainable aquaculture
EFMDRA will invest around 84.9 million euros in more sustainable fisheries and restoration and protection of aquatic biological resources in the Black Sea. Support will also be provided for the development of a sustainable aquaculture and processing sector, including local fisheries and aquaculture communities, and the implementation of international ocean governance. All actions receiving support will contribute to the objectives of the Common Fisheries Policy as well as to the key EU policy priorities outlined in the European Green Deal, the Farm to Fork Strategy and the Biodiversity Strategy.
Statements by members of the collegium:
Commissioner for Cohesion and Reforms, Eliza Ferreira, said: The Partnership Agreement marks a decisive step for Bulgaria. Cohesion policy funding in the period 2021-2027 will be essential to reduce regional disparities in the country and promote growth convergence with the rest of the EU. We are now looking forward to the conclusion of the negotiations on the ten national programs so that investments in key areas such as a clean environment, better education, support for businesses and transport infrastructure can start as soon as possible under cohesion policy.
Commissioner for Jobs and Social Rights Nicola Schmitt said: The objectives of the Partnership Agreement with Bulgaria show a firm commitment to achieving the Porto social goals of employment, lifelong learning and poverty reduction. By investing ESF+ funds in people, Bulgaria will increase social inclusion and improve access to the labor market, especially for people who are vulnerable or disadvantaged.
Environment, Oceans and Fisheries Commissioner Virginijus Sinkevičius said: The European Maritime, Fisheries and Aquaculture Fund plays a crucial role in supporting coastal communities, easing the impact of the crisis on the fisheries sector and decarbonising our economy. It supports innovative projects that contribute to the sustainable use and management of water and marine resources. This partnership agreement underpins Bulgaria's commitment to advance the environmental and digital transition by building low-carbon, sustainable and innovative fisheries and aquaculture sectors and supporting the development of the blue economy in coastal communities. It will also support the resilience of sectors challenged by extraordinary events causing significant market disruptions.
Context
The partnership agreement with Bulgaria covers 10 national programs. It also covers the eligibility and implementation of the FSP in three Bulgarian regions, which are most affected by the climate transition.
Within the framework of the cohesion policy and in cooperation with the Commission, each member state prepares a partnership agreement - a strategic document for programming the investments from the cohesion policy funds (the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund and the Just Transition Fund) and from the European Maritime, Fisheries and Aquaculture Fund during the Multiannual Financial Framework. It focuses on EU priorities, setting out the strategy and investment priorities chosen by the Member State and presenting a list of national and regional implementation programs by location, including a preliminary annual allocation of funds for each programme.
The partnership agreement with Bulgaria is the twelfth agreement for the 2021-2027 funding period, following those already adopted for Greece, Germany, Austria, the Czech Republic, Lithuania, Finland, Denmark, France, Sweden, the Netherlands and Poland.
According to the General Provisions Regulation for the period 2021-2027, Member States must fulfill the so-called horizontal and thematic enabling conditions in the implementation of cohesion policy programmes. One of the enabling conditions requires compliance with the EU Charter of Fundamental Rights. When drawing up their programmes, Member States must assess whether the enabling conditions are met. If the Commission does not agree with this assessment, it cannot reimburse the costs associated with the parts of the program concerned until the conditions are met. Member States must ensure that they continue to meet these conditions throughout the program period.
07.07.2022
THE ROMANIAN CENTRAL BANK RAISED ITS KEY INTEREST RATE BY 100 BASIS POINTS
The Central Bank of Romania raised its main interest rate by as much as 100 basis points to 4.75%, while the expectations of the financial markets were for a tightening of the interest rate by 75 basis points, BNR reported.
The new Romanian interest rate of 4.75% is the highest since July 2013.
This rate hike is the sixth since the central bank began the process of normalizing its monetary and interest rate policies last October and the biggest single rate hike since the global financial crisis in 2008, as the central bank tried to catch up with Eastern European its partners, which are fighting rising inflation through a series of rate hikes.
In Romania, inflation jumped in May to an almost 19-year high of 14.49%.
The central bank expects inflation to rise more than expected in the short term and remain in double digits at least until the second quarter of next year.
