The 60/40 Measure Has Been Prolonged Until 31 December 2020

Decree No. 278/ 12.10.2020 for amendment and supplementation of Decree No. 151/ 2020 of the Councils of Ministers Defining the Requirements and Procedure for Payment of Funds for Preservation of Employment after the Period of the State of Emergency and the Extraordinary Epidemic Situation was promulgated in State Gazette, issue 89 dated 16 October 2020. Below, the changes introduced with Decree No. 278/ 12.10.2020 are briefly explained.

1. The effect of the 60/40 measure has been prolonged for another three months – from 1 October 2020 until 31 December 2020.

2. The scope of employees for whom funds for preservation of employment shall be paid has been expanded and now includes employees for whom funds cannot be received on other grounds, but are employed in economic activity with code under the Classifier for Economic Activities (KID-2008) 39 “Other passenger land transport, not elsewhere classified”.

3. The funds payable under the measure shall be calculated based on the social security income for August 2020.

4. The amount of the funds for preservation of the employment of each employee shall be calculated as the social security income is divided with the number of days in the month for which the funds are paid, and is then multiplied by the number of working days for which they are paid.

5. Employers who have received funds for preservation of employment under the Decree No. 151/ 2020 shall pay remuneration to the employees at an amount not less than the amount of the social security income for August 2020, and shall pay the due social security contributions for the respective month.

6. The requirement for the employers to have incurred 20% decrease in revenue remains into effect, but after the amendments enter into effect, the decisive factor will be whether the applicants are incorporated before or after 1 September 2019. The applicants incorporated before 1 September 2019 are required to have incurred decrease in revenue of no less than 20 per cent for the month preceding the month of submission of the application for payment of funds, as opposed to the same month of the preceding calendar year. The applicants incorporated after 1 September 2019 are required to prove decrease in revenue of no less than 20 per cent for the month preceding the month of submission of the application for payment of funds as opposed to the average revenue for January and February 2020.

The amendments introduced by Decree No. 278/ 12.10.2020 shall enter into force retroactively – counted as of 1 October 2020, but funds for the period between 1 October 2020 and 31 December 2020 shall be paid after receiving of a positive decision by the European Commission for the compatibility of the aid with the internal market. The applications for payment of funds for the period between 1 July 2020 until 30 September 2020, which have been submitted before 15 October 2020 shall be reviewed and financed under the old regime.

This material is not exhaustive, is only of general nature and does not represent a specific advice or consultation. Should any additional questions arise, please do not hesitate to contact us at tel.: 02/943 37 00, fax: 02/943 37 07, е-mail: office@afa.bg or at: 38, Oborishte Str., Sofia 1504.