Bulgarian government extends 60/40 wage support measure to December 31, 2020

The Bulgarian government and the social partners on October 5 discussed a draft Decree amending Decree № 151 of 2020 regarding the extension of the 60/40 measure (according to which the state will finance 60% of the insurable income of employees remaining on payroll during the coronavirus crisis if the employer contributes the remaining 40%).

The necessary financial resources in the amount of about BGN 750 million for the implementation of the changes will be provided by the Unemployment Fund of the state social insurance. The effect of the extension of the measure is expected to be reflected in the retention of around 200,000 jobs.

The changes will take effect on October 1, 2020, and the funds for maintaining employment will be paid after the respective notification by the European Commission.

The extraordinary online meeting of the National Council for Tripartite Cooperation was convened by Deputy Prime Minister for Economic and Demographic Policy and Minister of Tourism Mariana Nikolova. The social partners unanimously support the draft decree with editorial notes and suggestions for refining the texts.