The Council of Ministers adopted amendments to Decree No. 55 (30 May 2020) regarding wage subsidy payments made to employers under the “60/40 program” as financial support in response to the coronavirus (COVID-19) pandemic.
The 60/40 wage subsidy program allows Bulgarian authorities to finance 60% of the wage costs (including the employers' social security contributions) of businesses that, due to the COVID-19 pandemic, would otherwise lay off workers. The relief generally is available for businesses in sectors that have been most affected by the health crisis including retail, tourism, passenger transport, culture, sports activities, amusement and recreation activities, and others.
The amendments to the 60/40 program are effective 14 May 2020 but will apply for employers that have already filed applications for the period before 14 May 2020. Employers are now able to apply for compensation for the period 13 March 2020 until 30 June 2020, but for no more than three months of support.
One provision in the amendments relates to the amount of remuneration to be paid to employees for whom their employers have received compensation. Specifically, employers must pay a remuneration to employees that is no less than the amount of the employees’ social insurance income for January 2020.
Read a June 2020 report [PDF 101 KB] prepared by the KPMG member firm in Bulgaria
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