Bulgaria: 60/40 wage subsidy again extended, through 2020 (COVID-19)
Bulgaria: 60/40 wage subsidy again extended
Bulgaria has extended the 60/40 wage subsidy—a response to the coronavirus (COVID-19) pandemic—through 31 December 2020.
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 60/40 wage subsidy has been extended twice, more recently by amendments published in the official gazette (no. 89, dated 16 October 2020). The effective date of these amendments is 1 October 2020, and the measures explicitly provide that all submitted applications for receipt of funding for the period from 1 July through 30 September 2020 will be reviewed and funded under the conditions that were in effect prior to the October 2020 amendments.
The funding of employers under the 60/40 mechanism will continue during the period from 1 October until 31 December 2020, but under amended terms. The amount of the funds received under the mechanism as well as the amount of the remuneration which employers are obligated to pay to employees for whom funding is received, will be determined on the basis of the insurance income of the employees for August 2020.
Read an October 2020 report [PDF 106 KB] prepared by the KPMG member firm in Bulgaria
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