20.05.2022

KEY INDICATORS OF ECONOMIC ACTIVITY IN THE FIRST QUARTER OF 2022

Data from the Labor Force Survey conducted by the National Statistical Institute

The economic activity rate for the population aged 15-64 is 72.0%, increasing by 0.6 percentage points compared to the first quarter of 2021.

The employment rate for the population aged 15-64 increased by 1.5 percentage points compared to the same quarter of 2021 and reached 68.4%.

The unemployment rate is 4.9%, or 1.4 percentage points lower than in the first quarter of 2021.

The discouraged persons aged 15-64 are 55.3 thousand, or 4.5% of the economically inactive persons in the same age group.

Employment

In the first quarter of 2022 the total number of employed persons was 3,068.3 thousand, of which 1,632.2 thousand were men and 1,436.0 thousand were women. Compared to the first quarter of 2021, the number of employees increased by 1.3%. The relative share of employed persons in the population aged 15 and over is 52.7%, as for men this share is 58.6%, and for women - 47.3%.

In the first quarter of 2022 1,982.8 thousand or 64.6% of the employed employed in the services sector, 906.6 thousand (29.5%) in industry and 178.9 thousand (5.8%) in rural, forestry and fishing farm. Compared to the same quarter of 2021 the number of employed persons increased in the services sector by 94.9 thousand (5.0%), decreased in the industry sector by 55.5 thousand (5.8%) and remained almost unchanged in the rural sector, forestry and fisheries.

Of all employees, 3.7% (114.1 thousand) are employers, 6.3% (193.0 thousand) - self-employed (excluding employees), 89.5% (2,744.9 thousand) - employees, and 0.5% (16.2 thousand) - unpaid family workers. Of the total number of employees, 2,101.3 thousand (76.6%) work in the private sector and 643.6 thousand (23.4%) in the public sector.

In the first quarter of 2022, employment in different age groups is as follows:

The employed persons aged 15 - 64 years are 2 975.3 thousand. The employment rate for the population in the same age group was 68.4% (71.8% for men and 64.9% for women).

The employment rate for the population aged 15-29 is 36.3% (40.2% for men and 32.2% for women).

The employment rate for the population aged 20-64 was 73.7%, respectively 77.4% for men and 69.8% for women. Compared to the first quarter of 2021, the employment rate (20-64 years of age) increased by 2.0 percentage points, by 1.2 percentage points for men and by 2.6 percentage points for women.

The employed persons aged 55-64 were 601.4 thousand, or 66.0% of the population in the same age group (70.7% of men and 61.7% of women).

Unemployment

In the first quarter of 2022 the number of unemployed persons was 158.7 thousand, of which 84.3 thousand (53.1%) were men and 74.4 thousand (46.9%) were women. Compared to the first quarter of 2021, the number of unemployed persons decreased by 45.3 thousand, or by 22.2%. Over the same period the unemployment rate decreased by 1.4 percentage points and reached 4.9%. The unemployment rate decreased by 1.7 percentage points for men and by 1.1 percentage points for women and in the first quarter of 2022 its value was the same for men and women.

Of all unemployed persons, 10.6% have higher education, 52.1% - secondary education, and 37.3% - primary or lower education. Unemployment rates by level of education are 1.6% for higher education, 4.6% for secondary education and 16.4% for primary and lower education, respectively.

In the first quarter of 2022 the share of persons with unemployment of less than one year and that of the long-term unemployed (unemployed for one year or more) is almost the same - respectively 49.7% (78.8 thousand) and 50.3% (79.9 thousand). ). The long-term unemployment rate decreased by 0.2 percentage points compared to the first quarter of 2021 and reached 2.5%, remaining higher for men (2.7%) than for women (2.2%).

Of the total number of unemployed, 19.2 thousand, or 12.1%, are looking for their first job.

In the first quarter of 2022 the unemployment rate for the age group 15 - 29 years was 8.3% (8.1% for men and 8.6% for women), and compared to the same quarter of 2021 was lower by 2.7 percent point. A decrease in the unemployment rate (15-29 years of age) was registered only for men - by 5.0 percentage points, while for women there was an increase in this indicator by 0.4 percentage points.

Economic inactivity

In the first quarter of 2022 the total number of economically inactive persons (persons outside the labor force) aged 15 and over was 2,594.3 thousand, of which 1,068.9 thousand (41.2%) were men and 1,525.3 thousand (58.8 %) - women. The economically inactive persons aged 15-64 are 1,216.7 thousand, or 28.0% of the population in the same age group. More than a third of them (455.3 thousand) are inactive due to participation in education or training.

Methodological notes

The labor force survey is sampled and conducted continuously, providing quarterly and annual data on the economic activity of the population aged 15 and over. It covers ordinary households in the country.

Observed period - the characteristics of each respondent refer to his condition during a certain calendar week.

The economically active population (labor force) includes all employed and unemployed persons.

Employed are persons aged 15 - 89 years, who during the observed period:

- perform work even for one hour, for which they receive a salary or other income;

- do not work, but have a job from which they are temporarily absent due to annual leave, illness, leave at birth and raising a small child and others.

Unemployed are persons aged 15 - 74 who:

- have no work during the observed period;

- actively looking for work for a period of four weeks, incl. the observed or have already found a job that they expect to start within three months after the end of the observed period;

- have the opportunity to start work within two weeks after the end of the observed period.

Persons who have been unemployed for one or more years are long-term unemployed.

Economically inactive (persons outside the labor force) are persons aged 15 and over who are neither employed nor unemployed during the observed period, incl. all persons aged 90 and over.

Persons outside the labor force aged 15-74 who wish to work but are not actively looking for work because they assume that they will not find a suitable job are discouraged.

Coefficient of economic activity - the relative share of economically active persons in the population in the same age group.

Employment rate - the relative share of employed persons in the population aged 15 and over or in the respective age group.

Unemployment rate - the relative share of the unemployed in the economically active population.

Long-term unemployment rate - the relative share of the long-term unemployed in the economically active population.

In estimating the results for the first quarter of 2022, data on the population of the country as of 31.12.2021 were used, excluding the population living in collective households.

As with any sample survey, the Labor Force Survey data is fraught with sampling errors (stochastic errors). The relative standard errors for the main indicators of the survey in the first quarter of 2022 are:

- total number of employees - 1.4%;

- total number of unemployed persons - 5.6%;

- unemployment rate - 5.4%.

Due to the roundings made, in some cases the total data may differ slightly from the sum of the individual groups included in them.

More detailed data from the Labor Force Survey for the first quarter of 2022 can be found on the NSI website - www.nsi.bg, section Labor Market, Labor Force Survey.

20.05.2022

WHAT SHOULD WE DO IF OUR SOCIAL SECURITY CONTRIBUTIONS HAVE NOT BEEN PAID?

Everyone has heard of the so-called social security contributions or social security contributions, as they are called by law, but only experts in the field of accounting, tax and social security law are aware of their nature, principles and calculation.

It is not uncommon for workers to face the unpleasant situation in which they realize that they cannot enjoy a number of rights granted by the state due to the fact that there are no paid social security contributions, which are in fact the basis for a number of benefits will be used on various occasions.

What are social security contributions, who should pay them and in what amount, and what can we do if we find out that we have not been paid?

Social security contributions are monthly cash payments that guarantee in the solidary social system of Bulgaria material (cash, etc.) protection of workers and employees in various social risks - illness, maternity, accidents at work, disability, unemployment, old age and death.

According to the law, all persons engaged in employment are compulsorily insured for general illness and maternity, disability due to general illness, old age and death, occupational accident and occupational disease and unemployment. Employers have a commitment to withhold and pay social security contributions for employees on a monthly basis. The insurances are due on the total gross remuneration of each of the employees within the limits of the minimum and maximum limits of the insurance income determined by law.

At present (May 2022) the minimum amount of insurance income in Bulgaria is BGN 710 and the maximum amount is BGN 3400. Therefore, if the employee receives remuneration in excess of BGN 3400, he will owe social security contributions only up to the amount of the maximum insurance income - BGN 3,400, but it cannot be insured on less than BGN 710 monthly gross remuneration. Social security is divided into funds - the Pension Fund, the General Illness and Maternity Fund, the Accident at Work and Occupational Disease Fund and the Unemployment Fund.

The total amount of social security contributions amounts to 32.70-33.40% of the gross remuneration, of which 18.92-19.62% are at the expense of the employer and 13.78% are deducted from the monthly remuneration at the expense of the employee.

Provided that the employer for one reason or another has not fulfilled its commitment to withhold and pay social security contributions for employees on a monthly basis (the deadline for payment of social security contributions is the 25th of the month following the month of employment. in other words, the insurance for May should be paid by June 25), then you have the opportunity to claim your rights in several ways.

In such a situation, the law gives you the right to terminate your employment contract without notice, pursuant to Art. 327, para. 1, item 2 of the Labor Code (when the employer delays the payment of the remuneration or of compensation under this code or under the social insurance). You can also request payment of the due insurances by referring to the relevant court, which will order a decision in your favor. Remember that state fees are not due in this type of court case.

At any time you have the right to contact the control bodies of the Labor Inspectorate, whose employees to inspect the company or institution and issue mandatory instructions to the employer, as well as to refer to the National Revenue Agency regarding non-payment of insurance and taxes by the relevant employer.

19.05.2022

A COMPANY MAY ALSO BE ESTABLISHED UNDER THE LAW ON OBLIGATIONS AND CONTRACTS

What is the company under the Law of Obligations and Contracts? What regime does it obey and what are the rules for its creation?

When we say company, we usually think of it as a company, something that is registered under the Commercial Code, which is entered in the commercial register. Such are joint stock companies and limited partnerships, limited liability companies.

However, the Bulgarian law provides for another type of companies - those under the Law on Obligations and Contracts (LOAC). They can usually be seen recorded as DZZD. It is important to know that it is not a legal entity and is not an independent legal entity, which is the main difference with companies under the Commercial Code. The establishment is done by contract.

According to the LOAC, with the company contract two or more persons agree to unite their activities to achieve a common business goal. It is noted there that in order to achieve the common goal, the partners may also agree on contributions in cash or in other properties.

According to the rules for these companies, the imported money, substitutable items and items that are destroyed by use are the common property of the partners. Any other item is considered imported for common use, unless otherwise agreed.

Regarding the liability of the partner for defects of the imported property and for judicial removal, the rules of the lease agreement apply when the property is imported and the rules of the sale contract when the property is imported, the LOAC orders.

The law also stipulates that everything acquired for the company is the common property of the partners. Unless otherwise agreed, the shares of the partners are equal. The partner can claim his share of the common property only upon leaving the company or upon its termination.

Another basic rule is that decisions on the company's affairs are taken with the consent of all partners, unless the articles of association provide for this to be done by a majority of votes. Each partner has the right to one vote.

Unless otherwise agreed, each partner has the right to manage. However, in this case, each of the other partners may oppose the partner's action before it is committed. The majority of the partners decides on the disagreement.

Again, unless otherwise agreed, the profits and losses are distributed among the partners in proportion to their share. The agreement to exclude some of the partners from participation in losses or profits is invalid.

The partner may not transfer his right to participate in the company without the consent of the other partners.

The rules for when the company is terminated are also important. This is done by achieving the company's goal or if it has become impossible to achieve it. Termination also occurs with the expiration of the time for which the company was formed, as well as with the death or interdiction of one of the partners, unless otherwise agreed. DZZD is also terminated with a notice of one of the partners, made in good faith and at an appropriate time, when the company was formed for an indefinite period, unless it is agreed that the company will continue with the other partners. The last option for termination is by court decision, if there are good reasons for this, when the company is formed for a certain period.

The partner has the right to claim the expenses he has incurred, together with interest on them, and the damages he has suffered in connection with the conduct of the company's affairs.

19.05.2022

THE EU RECOGNIZES COVID-19 AS AN OCCUPATIONAL DISEASE

The European Union will recognize coronavirus infection as an occupational disease according to an agreement reached between European countries and representatives of trade unions and employers, the European Commission said.

The Commission will recommend that COVID-19 be included in the lists of occupational diseases in European countries by the end of the year in the health, social care and home care sectors and, in the event of a pandemic, in outbreak sectors of the disease in activities with a proven risk of infection.

The change will allow workers who became infected with COVID-19 while at work to receive rights, including compensation, if provided for by national law.

According to the Bulgarian legislation and according to the terms and conditions set by the Social Security Code, in case of an accident at work and occupational disease the insured persons or their heirs are entitled to cash benefits for temporary incapacity for work, cash benefits for employment in another job, personal or survivor's disability pension, cash benefits for prevention and rehabilitation and one-time assistance in case of death.

19.05.2022

THE LAW ON OFFSHORE DEPOSITS - ADOPTED; THIS IS THE MOST IMPORTANT STEP FOR ROMANIA'S ENERGY INDEPENDENCE

The Romanian Parliament's Chamber of Deputies passed the Offshore Reserves Bill.

The Law on Offshore Deposits is the most important step towards Romania's energy independence, Energy Minister Virgil Popescu said.

"Today we voted in the Chamber of Deputies by a large majority of the Offshore Deposits Act. It is perhaps a step - the most important step we are taking towards energy independence. In fact, we can say that once investments in the Black Sea begin, Romania will become independent energy-intelligent; we will produce more natural gas than we consume, and the surplus can be exported," Virgil Popescu told parliament.

According to the minister, Romania could become an energy security provider in the region.

"The law creates stability and predictability, a favorable tax environment and I am confident that it will help investors in their decision to invest. In addition, it protects Romania's national interests - in the event of an energy crisis, we will be able to intervene and redirect gas to domestic consumption, and the law requires control over bilateral agreements… I believe this is a law from which both the state and investors they are winning and we expect that an investment decision will be made ", added Virgil Popescu.

He also said that "no one sells below cost, starting with the principle of good faith."

"Romania benefits from the use rights granted - somewhere around 13 per cent - from an additional turnover tax. Romania benefits from a profit tax on companies, from the jobs that will be created. The state budget benefits from the labor tax and I believe the most important thing: Romania is becoming independent energy-intelligent and we will no longer have problems with natural gas supplies," said Virgil Popescu.

The Chamber of Deputies approved the Offshore Deposits Bill by 248 to 34 votes.

The project aims to regulate a number of measures in the tax regime and the rights to use oil deposits.

19.05.2022

MINISTRY OF ECONOMY AND INDUSTRY WITH AN ONLINE SURVEY ON BUSINESS PROBLEMS

The Ministry of Economy and Industry has launched an online survey addressed to Bulgarian companies.

All employers' organizations in the country and their members are invited to participate in the survey. "The purpose of the survey is to establish the real problems and needs of Bulgarian business after the imposed sanctions, the suspension of gas supplies and other current problems," said Deputy Prime Minister and Minister of Economy and Industry Korneliya Ninova.

The survey will be monthly and will aim to gather as much information as possible about the impact of the crisis on the real economy. Business representatives can report the problems they face on the website of the Ministry of Economy and Industry. The standardized table can be downloaded from the website of the Ministry and sent to the e-mail address: info@mi.government.bg. The deadline is the last day of each month.

18.05.2022

WHAT ARE THE GOVERNMENT'S ANTI-CRISIS MEASURES AGAINST INFLATION?

Zero percent VAT on bread, updating of pensions by nearly 20%, higher tax breaks for families with children and discounts on fuel, including petrol and diesel - these are just some of the measures in the anti-crisis package adopted during yesterday's coalition Council, the press service of the Council of Ministers announced. The measures are aimed at supporting Bulgarian citizens and businesses in the face of the unprecedented crisis caused by the war in Ukraine.

According to the ruling coalition partners, pensions will be updated from July 1st, instead of the current 6.1%, by an average of 20%. This includes a increase in all pensions by BGN 60 and an additional percentage increase. According to the so-called Swiss rule, the pensions of 770 thousand pensioners will be recalculated from October 1, and from 2008 each pension will be recalculated with 100% growth in average insurance income or 100% inflation, depending on which is more favorable and which is the higher amount of the pension for the particular pensioner.

The decisions of the ruling coalition lead to a drastic increase of over 55% of the minimum pension, which at the beginning of last year was BGN 300, and from July 1 will be BGN 467.

The anti-crisis package also provides compensation for high fuel prices. All citizens until the end of the year will be able to take advantage of a discount of BGN 0,25 per liter for petrol 95 and diesel, methane and propane-butane.

For a period of one year the VAT on bread will be reduced to 0%, and for the same period the VAT on wine and beer will be refunded to 20%.

With regard to heating, VAT on heating and hot water is expected to be 9% within one year. It will also be reduced to 9% VAT on natural gas for end users/household needs for a period of 1 year. It is exempt from excise duty on electricity, natural gas, methane.

In support of families with children, as a long-term measure it is planned to increase the amount of tax relief for children from BGN 4,500 to BGN 6,000 per year, and it will be possible to use it every three months during the year.

The package of anti-crisis measures also includes increasing the threshold for mandatory registration under the VAT Act from BGN 50,000 to BGN 100,000; taxation of excess profits of electricity in order to compensate non-household consumers; electronic vouchers for the convenience of employees, as their total amount will be increased to BGN 1.2 billion; reduction of the interest rate to 8% for overdue payments to the state, municipalities, utilities, etc.

A recommendation will be made to the Energy and Water Regulatory Commission (EWRC) for two rates for electricity, water, heating and gas, based on consumption per household, with the aim of introducing a reduced tariff for less consumption. The VAT rate for books continues to be lower at 9%.

Most of the measures will be settled in the forthcoming budget update in the middle of this year, with different deadlines for entry into force and implementation. The necessary legislative changes will also be made.

17.05.2022

HOW CAN PEOPLE WITH DISABILITIES START THEIR OWN BUSINESS WITH MONEY FROM THE STATE?

Up to BGN 20,000 can be received by people with disabilities for starting or developing their own business. The funds are provided by the Agency for People with Disabilities to cover the costs of establishing a new enterprise, construction and repair works, equipment of workplaces, starting minimum working capital and a short training course for the owner of the enterprise.

People with 50 and over 50% reduced working capacity can apply for funding, according to a decision of the TEMC or NEMC. They must not have a sole proprietorship or be partners in other companies.

After the completion of the planned main activities, people with disabilities must actively work in the interest of the enterprises created with the subsidy. Own funding is not required.

Project proposals must be submitted by June 20, 2022 to the Agency for People with Disabilities (APD). The documents can be brought on the spot or sent by mail or electronically to ahu_ssd@mlsp.government.bg.

More information can be found in the section Projects/Programs, section "Independent Business" on the website of the Agency for People with Disabilities https://ahu.mlsp.government.bg/home/.

17.05.2022

KRISTALINA GEORGIEVA: JOINING THE EUROZONE IS NOW MORE COMPLICATED DUE TO HIGH INFLATION

Joining the eurozone is a logical step for Bulgaria, because then it will not only receive monetary policy, but will also be able to influence this monetary policy. This was said by the managing director of the International Monetary Fund Kristalina Georgieva to journalists at the University of National and World Economy after receiving the honorary title "Doctor Honoris Causa".

"Bulgaria has a currency board and our monetary policy is determined by the European Central Bank. Joining the eurozone is now more difficult due to high inflation. However, this is due to external shocks and the war in Ukraine. The problem of rising prices affects all countries except "Japan and several Asian countries. It is very likely that the ECB and eurozone ministers will take into account the fact that inflation in our country is external and this will not affect the deadline for the adoption of the euro," said Kristalina Georgieva.

When asked whether Bulgaria should or should not join the eurozone, I would answer with another question: "Is there anyone in Bulgaria who wants the currency board to fall?". So far I have not seen in public opinion polls fall. "So far, I have not seen in opinion polls public sentiment about the fall of the currency board and we to be without its protection. Once our currency is pegged to the euro, it is much better for us to participate in shaping policies that affect our country," Georgieva said.

"We see inflation above ten percent in our country, but we expect inflation to be contained in 2023. Central banks are already taking decisive measures to curb rising prices in the EU. This year, inflation may accelerate slightly before we already know what it is like to have an energy shock and measures are being taken, "Georgieva said.

Asked whether the flat tax in Bulgaria should be abolished, Kristalina Georgieva pointed out that the IMF's recommendation is to assess the impact of the flat tax, and not necessarily to reform it. "Such an assessment has not been made and it is good to see how it works and whether the conditions that led to its introduction still exist in our country. I think that in Bulgaria, where inequality is deepening, it is important to assess whether fiscal policy can help both taxes and social funds to reduce this inequality, "said the IMF director.

Kristalina Georgieva commented that the measures in the government's anti-crisis package have been chosen very correctly. The most important thing at the moment is for Bulgaria to absorb the EU money and to include in the anti-crisis measures the acceleration of the projects stopped due to "open corruption". She gave the example of the Echemishka tunnel on the Hemus highway, which she passed through last weekend. This is a dead end and it is very important in anti-crisis measures to restart such projects," she said.

According to the director of the IMF, there are many unknowns about what will happen this year - we do not know how long the war in Ukraine will last, as well as its consequences, and whether the pandemic will not spread again. Currently, the two biggest problems in the world, according to her, are the slowdown in China's economic growth and inflation.

"We projected China's GDP to grow by 5.5 percent, but now we have lowered it to 4.4 percent and are likely to adjust further down. Inflation calls for a tightening of monetary policy, which could slow economic growth and bring in Bulgaria is not threatened by a recession, the IMF forecasts GDP growth in our country of 3 percent, while the previous forecast was 4.2 percent growth this year. "However, at the IMF, we have revised the economic growth of 143 countries, which make up 86 percent of the world's GDP," Georgieva said.

17.05.2022

THE ANNUAL INFLATION RATE IN BULGARIA HAS ACCELERATED

The annual inflation rate in Bulgaria accelerated in April 2022 for the 14th consecutive month, reaching 14.4% compared to 12.4% in the previous month, according to data from the National Statistical Institute (NSI). This is the highest level of inflation in our country since 2008.

Compared to March, consumer prices in our country increased by 2.5% in April, after a month earlier they increased by 2.2%.

The average annual inflation for the period May 2021 - April 2022 compared to the period May 2020 - April 2021 is 7.0 percent.

The main upward pressure on inflation in April was exerted by the prices of clothing and footwear, which increased by 6.4% compared to March, as well as the prices of food and non-alcoholic beverages, which increased by 4.5%.

There is another increase in transport prices, which increased by 3.5% compared to March, when they jumped by 7.9%.

Prices in restaurants and hotels jumped by 2.6 percent within a month, and those for housing, water, electricity, gas and other fuels (for utilities) increased on a monthly basis by 1.7%.

Another increase in transport prices is due to a new increase in fuel prices in April compared to the previous month, as the price of gasoline A95H increased by 3.5%, gasoline A100H - by 3.1%, and propane-butane gas - by 2.7% and diesel by 6%, however, after fuel prices jumped by more than 10% in March.

In April, a solid jump in food prices was recorded in meat, with pork rising by 7.8%, lamb by 12.9% and poultry by 10.2%.

The price of yoghurt increased in April by 4.3%, of cheese by 4.4%, of yellow cheese - by 3.5%, and of eggs - by 5.2%.

Rice rose by 3% and flour - by 4 percent.

There is a serious jump of 20% in the prices of tomatoes, pepper rose by 16.3% and potatoes - by 8.9%.

In April, a small part of food prices fell, with the largest price decline of 12.1% in cucumbers, leafy vegetables - by 0.1% and fresh and chilled fish - by 2.4 percent.

Harmonized inflation (HICP according to common European standards) rose by 2.1% on a monthly basis in April, while harmonized consumer inflation on an annual basis accelerated to 12.1% from 10.5% in March.

The Harmonized Index of Consumer Prices is a comparable measure of inflation in EU countries. It is one of the criteria for price stability and for Bulgaria's accession to the eurozone.