PLANNED OPTIMIZATION OF THE 60/40 MEASURE

The employment retention scheme, also known as "60/40", will be extended for June and July as of the latest decision of the National Council for Tripartite Cooperation.

With changes in CMD 151/2020, the aid is now differentiated. Companies that report a 30% decrease will receive compensations by 50% of their insurance income. The state will compensate those with a 40% decrease by 60% of their insurance income. Currently, the requirement for all companies is to prove a drop in revenue of over 20 per cent.

In the next few days, the Council of Ministers will vote on the Decree amending the measure. The changes in the Decree will come into force on June 1, 2021, and all companies that have already started procedures for approval of employers applying for the measure "60/40" will use the current order.

All social partners announced their search for mechanisms to continue state support for business until the end of the year.

Finance Minister Asen Vassilev informed the social partners about the prepared budget update and the announced intentions to recalculate the pensions. The general framework for updating the budget will be to maintain the level of government debt and deficit. Due to the actions of the National Revenue Agency and the improved economic situation, the state will raise an additional between BGN 1 and 1.5 billion, Minister Vassilev added. These funds will provide for three areas - businesses, workers and retirees. The types of measures and their scope will be discussed in a working version before their finalization, Asen Vassilev concluded.