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#COVID-192020-09-21T15:58:47+03:00

Economic measures

Q&A

Resources

Economic measures

Q&A

Resources

Economic measures taken by the State in response to Covid

Economic measures taken by the State in response to Covid

60/40 Economic Measure

Who can benefit?

  • Companies that have terminated the work or have transferred to part-time work during the State of Emergency and State of Emergency Epidemic Situation
  • Companies that have granted paid annual leave to the employee without his consent
  • Companies that have kept the employment after a notification for mass dismissals during the period from 13th of March to 30th of June 2020
  • Companies with employees, other than those mentioned above, that operate in the sector “Hotels and restaurants”

List of activities that are NOT included:

  • Agriculture, forestry and fishing
  • Financial and insurance activities
  • Government
  • Education (excluding Preschool education – private sector and Other educational activities)
  • Human health and social work (excluding Activities of dentists, Other human health activities and Day care for young children private sector)
  • Activities of households as employers; Undifferentiated activities of households for the production of goods and services for own consumption
  • Activities of extraterritorial organizations and bodies

The 60/40 measure target Companies from different sectors, which prove that the revenue fell more than 20% in the month preceding the month of submission compared to:

  • The same month of the previous calendar year – for companies established before 1st of June 2019
  • The average income for January and February 2020 – for companies established after 1st of June 2019

Period of action

1 July to 30 September 2020

Financial compensations for affected companies

  • State covers 60% of the insurance income for May 2020 that is max. 3000 BGN
  • State covers 60% of the insurance that is on account of the Employer
  • For part-time work, the compensation is paid in proportion to the off-hours, max 4 hours a day
  • Employer covers the rest of the amount to the Full Gross salary

The Process

  • Application for compensation has to be submitted to the relevant Directorate “Labor Office” without a deadline for submission
  • The documents will be submitted electronically or through a licensed postal operator

60/40 Economic Measure

Who can benefit?

  • Companies that have terminated the work or have transferred to part-time work during the State of Emergency and State of Emergency Epidemic Situation
  • Companies that have granted paid annual leave to the employee without his consent
  • Companies that have kept the employment after a notification for mass dismissals during the period from 13th of March to 30th of June 2020
  • Companies with employees, other than those mentioned above, that operate in the sector “Hotels and restaurants”

List of activities that are NOT included:

  • Agriculture, forestry and fishing
  • Financial and insurance activities
  • Government
  • Education (excluding Preschool education – private sector and Other educational activities)
  • Human health and social work (excluding Activities of dentists, Other human health activities and Day care for young children private sector)
  • Activities of households as employers; Undifferentiated activities of households for the production of goods and services for own consumption
  • Activities of extraterritorial organizations and bodies

The 60/40 measure target Companies from different sectors, which prove that the revenue fell more than 20% in the month preceding the month of submission compared to:

  • The same month of the previous calendar year – for companies established before 1st of June 2019
  • The average income for January and February 2020 – for companies established after 1st of June 2019

Period of action

1 July to 30 September 2020

Financial compensations for affected companies

  • State covers 60% of the insurance income for May 2020 that is max. 3000 BGN
  • State covers 60% of the insurance that is on account of the Employer
  • For part-time work, the compensation is paid in proportion to the off-hours, max 4 hours a day
  • Employer covers the rest of the amount to the Full Gross salary

The Process

  • Application for compensation has to be submitted to the relevant Directorate “Labor Office” without a deadline for submission
  • The documents will be submitted electronically or through a licensed postal operator

Extended Deadlines

July 31:

Publishing the Audit Transparency Report

September 30:

Publishing of the Annual Financial Statements

Audit committee to present the Annual activity report

Personal Identification Code

National Insurance Institute allows submitting a request for Personal Identification Code (PIC) electronically.

The service is provided through Secure Electronic Service System of the State Agency “eGovernment”

How to submit a request electronically?

  1. Registration in the Security Electronic Service System of the State Agency “eGovernment”
  2. Valid qualified electronic signature (QES), cloud or mobile electronic signature
  3. The certificate is sent to the person through the system

Extended Deadlines

July 31:

Publishing the Audit Transparency Report

September 30:

Publishing of the Annual Financial Statements

Audit committee to present the Annual activity report

Personal Identification Code

National Insurance Institute allows submitting a request for Personal Identification Code (PIC) electronically.

The service is provided through Secure Electronic Service System of the State Agency “eGovernment”

How to submit a request electronically?

  1. Registration in the Security Electronic Service System of the State Agency “eGovernment”
  2. Valid qualified electronic signature (QES), cloud or mobile electronic signature
  3. The certificate is sent to the person through the system

Extended Deadlines

July 31:

Publishing the Audit Transparency Report

September 30:

Publishing of the Annual Financial Statements

Audit committee to present the Annual activity report

Personal Identification Code

National Insurance Institute allows submitting a request for Personal Identification Code (PIC) electronically.

The service is provided through Secure Electronic Service System of the State Agency “eGovernment”

How to submit a request electronically?

  1. Registration in the Security Electronic Service System of the State Agency “eGovernment”
  2. Valid qualified electronic signature (QES), cloud or mobile electronic signature
  3. The certificate is sent to the person through the system

Personal Document Validity

Personal Document Validity

The validity of personal documents expiring from 13 March 2020 to 31 October 2020 is extended by 6 months.

  • Identity cards
  • Driving Licenses
  • Residence documents for foreign, EU citizens, citizens of EEA States, Swiss citizens

For the period of extension all documents above are considered valid documents only on the territory of the Republic of Bulgaria.

Long-term resident alien in Bulgaria:

  • For whom the term of residence expires within the declared state of emergency, may apply for extension of residence within 14 days after the cancellation of the state of emergency. The period of the declared state of emergency shall not be considered as an interruption when the foreign citizen applies for a long-term or permanent residence
  • Of whom the permitted long-term residence expires within the declared state of emergency, may enter the territory of the country without a visa within 14 days after the cancellation of the state of emergency

The validity of personal documents expiring from 13 March 2020 to 31 October 2020 is extended by 6 months.

  • Identity cards
  • Driving Licenses
  • Residence documents for foreign, EU citizens, citizens of EEA States, Swiss citizens

For the period of extension all documents above are considered valid documents only on the territory of the Republic of Bulgaria.

Long-term resident alien in Bulgaria:

  • For whom the term of residence expires within the declared state of emergency, may apply for extension of residence within 14 days after the cancellation of the state of emergency. The period of the declared state of emergency shall not be considered as an interruption when the foreign citizen applies for a long-term or permanent residence
  • Of whom the permitted long-term residence expires within the declared state of emergency, may enter the territory of the country without a visa within 14 days after the cancellation of the state of emergency
Questions and Answers
Can I place employees on paid leave?2020-06-05T10:58:29+03:00

During the state of emergency, employers may unilaterally grant up to one-half of the paid annual leave to employees without their request or consent.

When an order of a public authority has terminated the work of the enterprise, part of the enterprise or individual employees, the employer shall be entitled to grant paid annual leave to the employee without his or her consent, including to an employee who has not acquired 8 months of service. In this case, the employer has the right to unilaterally order the use of paid annual leave, including paid annual leave which has been postponed, without the request or consent of the employee.

Can I place employees on unpaid leave?2020-06-05T10:57:29+03:00

Unpaid leave is allowed at the request of the employee, and the employer cannot unilaterally grant this type of leave without requesting it.

During the declared state of emergency in the Republic of Bulgaria, the employer is obliged to allow the use of unpaid leave at the request of:

  • Pregnant worker and an advanced worker in vitro
  • Mother or adoptive parent of a child up to 12 years of age or of a disabled child regardless of age
  • Worker or employee who is a single father or adoptive parent of a child up to 12 years of age or a disabled child, regardless of age
  • Worker or employee who is under 18 years of age
  • Employee with permanent disability of 50 and more than 50 percent
  • Employee with the right to protection upon dismissal under Art. 333, para. 1, items 2 and 3
If the corporate tax return has already been filed, will there be a deferral for tax payment?2020-06-05T11:02:53+03:00

Yes, it is extended until 30.06.2020.

How to file an income declaration without visiting NRA office if I do not have PIC or electronic signature?2020-06-05T11:00:32+03:00

You can fill in the declaration with a barcodeprint it out and send it by registered letter to the NRA office as per your permanent address.

Termination of employees due to reduced workload?2020-06-05T10:54:47+03:00

In case of reduction of the workload, the employer has the right to terminate the employment contract with an employee by sending a written notice to him within the statutory terms. Significant for the legality of the dismissal is the actual reduction in the workload (the amount of production, the volume of turnover, the amount of services rendered, etc.). The reduction in the volume of work should relate to the work functions performed by the worker.

How to recover discontinued health insurance rights during the state of emergency?2020-06-05T11:01:10+03:00

If your health insurance rights have been discontinued due to unpaid contributions you may file a declaration and pay the health insurance contributions that are due online.

If you recover health insurance rights on another grounds (for example you are full-time student abroad, you have been insured in an EU member state, etc.) and you have to submit documents to the NRA, you can send them scanned via e-mail to the office of the revenue agency as per permanent address.

Can I refer to Article 218 of the Labor Code and pay half salaries for the period during which the facility is closed?2020-06-05T10:59:09+03:00

In the present case Art. 218 of the Labour Code is not applicable.
In the case of a declared state of emergency, the employer may, by order, suspend the work of the enterprise, part of the enterprise or individual employees for the whole period or part of it until the state of emergency is canceled. The employer is obliged to pay the gross salary to the employee for the duration of termination of employment.

Change of working hours from full to part time?2020-06-05T10:56:46+03:00

The employer may establish part-time employment for the whole or part of the period for the full-time workers. The length of working time may not be less than half the statutory one for the period of calculation of working time. 

For example, if the calculation of working time is daily, this means that part-time work cannot be entered in less than half of the statutory day. The establishment of part-time work shall be by written order of the employer on a case-by-case basis, specifying the term and the positions for which part-time work and working hours are entered.

How to obtain a certificate that I do not owe taxes and compulsory social security contributions during the state of emergency?2020-06-05T11:01:47+03:00

You may request a certificate of existence or lack of public obligations online, by using the NRA’s e-services portal.

Can I refer to Article 306 of the Commercial Code and not pay rent for the period of emergency?2020-06-05T10:55:38+03:00

Yes, you can refer to Art. 306 of the Commercial Act and you could not pay rental price during the period of state of emergency, but only if certain prerequisites are in place.

For example, if the order imposing the state of emergency should prohibit the hired by you unit from working – then the fulfillment of the obligations and the related to them counter-obligations is suspended, ie you may not pay rental price. In other words, the state of emergency must be the direct reason because of which the leased unit could not be used.

However, if there is an opportunity to use the rented commercial unit, but there are no customers due to the imposed restrictions with the state of emergency or any other reason, then the institute of economic intolerance could help – the court may, at the request of one of the parties, amend or terminate the contract in whole or partially.

If, despite the force majeure, both parties to the contract have an interest in executing the lease, it may be possible to modify the contract for the duration of the force majeure and to maintain the contract in such a way that it is acceptable to them. In each case, it should be taken into account whether all the prerequisites exist, as well as what are the interests of the parties and whether they are justified. In this regard, it is needed every case to be reviewed individually and a consultation by a specialist to be provided.

Resources
Find useful templates that will help You organize the work processes faster in order to be in compliance in the State of Emergency Epidemic Situation

Assigning Remote Work
Order

Download

Paid Leave
Order

Download

Paid Leave Order

*for Companies temporarily
suspended of work

Download

Temporary Assignment of
Part-time Work Order

Download

Temporary Suspending of work
Order

Download

Payment of 60% compensation
Application

Download

List of Employees
Template

Download

Assigning Remote Work
Order

Download

Paid Leave
Order

Download

Paid Leave Order

*for Companies temporarily
suspended of work

Download

Temporary Assignment of
Part-time Work Order

Download

Temporary Suspending of work
Order

Download

Payment of 60% compensation
Application

Download

List of Employees
Template

Download
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