JOINT PROJECT OF ILO AND BIA TO REDUCE THE INFORMAL ECONOMY BY ESTABLISHING CONTRIBUTION PAYMENT CENTERS AT THE REGIONAL INDUSTRIAL ASSOCIATION IN SUP

Since the beginning of 2005 the International Labour Organization (ILO) and the Bulgarian Industrial Association (BIA) are implementing a joint project aiming at the reduction of the informal economy through the establishment and development of contribution payment centers by the regional industrial associations - members of BIA.

Major objective of the contribution payment centers by employers' organisations in Bulgaria is to support enterprises and self-employed persons in fulfilling their social security obligations, to render assistance in the administration of payrolls and wages, collection and remittance of social contributions to the National social security institute (NSSI) in compliance to the social and fiscal legislation.

A workshop was held within the project on 20 October in Albena on the "Establishment of contribution payment centers" attended by the ILO-Budapest representative, Mr. Jean-Marie Standaert. A number of representatives of Bulgarian sector and regional industrial associations, as well as of territorial units of NSSI, partook in the meeting.

There has been a discussion on the development of the Regional contribution payment center (CPC) existing already by the Industrial Association of Varna, as a pilot model for the other employers' organisations. A marketing strategy was developed with the support of ILO for the CPC in Varna with the aim of attracting new members and a specialised software is being developed to process the social security documentation of the CPC members and to establish a direct connection with the NSSI.

Contribution payment centers by the industrial associations of Targovishte and Stara Zagora are expected to be formally registered by the end of this project, as they will also profit from the products developed by the project with the support of ILO.

On 16 November BIA and ILO will organise a meeting in Bulgaria for the employers' organisations of Southeast Europe where BIA and its regional members will share their experience in setting up contribution payment centers as a useful tool to reduce the informal economy and to support the small and medium enterprises in their relations with the national social security and tax authorities.