The National Council for Tripartite Cooperation (NCTC) held an emergency online meeting convened by Deputy Prime Minister for Economic and Demographic Policy and Minister of Tourism Mariana Nikolova.
On the first item on the agenda of the meeting, the government and the social partners discussed a draft Decree amending Decree № 151 of 2020. The changes provide the extension of the measure, known as 60/40, which is now extended until 31st of March, 2021.
Funds will be provided for employees who during the period from March 13th to December 31st , 2020 have worked part-time, have used leaves under Art. 173a of the Labor Code - unpaid leave, or their work has been suspended due to temporary restrictions on activity. In order to benefit from the measure, employees must have been in an employment relationship with the employer before 1st October, 2020.
The amount of support from the state remains 60 percent of the insurance income and 60 percent of the social security contributions due by the employer for October 2020.
Until January 15th , 2021, employers will be able to submit applications for payment of funds for the period from October 1st to December 31st , 2020. Applications will be considered and funded under the current procedure.
The necessary financial resources for the implementation of the measure will be at the expense of the budget of the National Social Security Institute and will be transferred to the respective employer by bank transfer from the National Social Security Institute.
The social partners generally support the draft Decree.
In an additional item, the second NCTS discussed a draft Decree amending Decree № 325 of 2020, which provides for the payment of compensation of BGN 24 per day in case of forced use of unpaid leave for up to 60 days.
According to the proposed amendments from January 1, 2021, people employed on an 8-hour working day contract will be entitled to receive financial support in the amount of 75% of their insurance income for October 2020. In cases of part-time work the compensation will be determined in proportion to the agreed working hours in the employment contract valid during the period of unpaid leave for which compensations are paid.
The measure is expected to be valid until 31.03.2021, and the compensation will be paid for no more than 60 days of unpaid leave in connection with the restrictions imposed due to COVID-19 for carrying out the respective activity.
The financial resources required for the measure are provided by the Operational Program "Human Resources Development" through the financial mechanism REACT-EU. The conditions and the order for applying and receiving the financial support are preserved.
The social partners unanimously support the draft Decree.