New changes to Decree No 55 of the Council of Ministers on the 60/40 Scheme were promulgated on the 21st of April 2020 (hereinafter the “Decree”).
The changes were made further to recent the Amending and Supplementing Act to the Bulgarian State of Emergency Measures Act (such Amending and Supplementing Act was adopted on the 6th of April 2020).
Pursuant to the changes, the Bulgarian National Social Security Institute shall pay to the employers 60% of the social security income for January 2020 and of the social security contributions due by the employer on the said 60%.
In case reduced working time is introduced the employer having received compensations shall pay to the employee the full amount of the salary, as if under non-reduced (full) working time.
Therefore, for employers who have introduced reduced working time and intend to use compensations under the Decree, the 60/40 scheme entails the following costs:
• The salary for the reduced working time actually worked off (for example 4 hours) and the social security contributions due by the employer thereon;
• 40% of the salary for the non-worked off time (for example 4 hours) and the social security contributions due by the employer on these 40%.
The employer shall keep the employment of the employees for whom compensations have been paid for an additional period equal to the period, during which compensations have been paid. This means that if the employer has received compensations for April and May 2020, he shall keep the employment of the respective employees for two additional months, respectively for June and July 2020.
The changes in the Decree are in force as from the 21st of April 2020.
The Employment Agency has announced last week that the compensation applications and the required documents can be submitted without deadline (at this stage).
The above summary does not exhaustively set out all measures and the complete regulation set forth in the Decree and is not an advice as regards to a specific scenario.
We remain at your disposal to discuss any questions that may arise in relation to the measures and steps set forth in the Decree.
Atanassov and Ivanov Law Firm
23 Serdica Str.
Sofia 1202, Bulgaria
tel. (+359 2) 983 67 87
fax (+359 2) 983 67 84
Further advice: CONTACT US