Bulgaria: 60/40 wage subsidy extended through 31 December 2021 (COVID-19)
“60/40 wage subsidy” program finances 60% of a business’ wages to avoid worker layoffs
“60/40 wage subsidy” program finances 60% of a business’ wages to avoid worker layoffs
The Council of Ministers adopted amendments to the “60/40 wage subsidy”—a program instituted in response to the coronavirus (COVID-19) pandemic—concerning the conditions and procedures for paying funds to employers for the purpose of maintaining employment.
The amendments were published in the official gazette (No. 85 dated 12 October 2021) and are effective retroactively as of 1 August 2021.
The funding of employers under the 60/40 mechanism will continue for the period from 1 August through 31 December 2021 (provided that the European Commission resolves to extend the term of the temporary framework for state aid measures to support the economy in the current COVID-19 pandemic for the period following 31 December 2021).
Background
The 60/40 wage subsidy program allows Bulgarian authorities to finance 60% of the wage costs (including the employers' social security contributions) of businesses that, due to the COVID-19 pandemic, would otherwise lay off workers. The relief generally is available for businesses in sectors that have been most affected by the health crisis including retail, tourism, passenger transport, culture, sports activities, amusement and recreation activities, and others. Read TaxNewsFlash
Read an October 2021 report [PDF 99 KB] prepared by the KPMG member firm in Bulgaria
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