Amendments to Decree No 55 for payment of compensation to employers under the 60/40 mechanism
Amendments to Decree No 55 for payment of compensation
The Council of Ministers adopted amendments to Decree No 55 dated 30 March 2020 on the conditions and procedure for payment of compensation to employers (the “Decree”). The amendments to the Decree are published in today’s issue of the State Gazette.
The amendments become effective as of 14 May 2020. However, they will also apply to employers which have already submitted their applications for receipt of compensation in the period before 14 May 2020.
As per the amendments employers are now able to apply for receipt of compensation for the period from 13 March 2020 until 30 June 2020, but for no more than three months.
The most significant amendment to the Decree is related to the amount of the remuneration which should be paid to the employees for whom employers have received compensation. More specifically, employers will have to pay a remuneration which is no less than the respective employees’ insurance income for January 2020.
How can we help?
The team of KPMG remains at your disposal for any inquiries or need of assistance you may have related to the interpretation and application of the new amendments.
© 2024 KPMG Bulgaria OOD, a Bulgarian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.