COMMUNICATION OF THE MINISTRY OF TOURISM New package of measures “Employment х 3”

In addition to the measures adopted so far by the Government of the Republic of Bulgaria to promote employment, as of July 1^st, 2020, a new package of measures “Employment x 3” enters into force, designed for the most vulnerable economic sectors of the Covid-19 pandemic and especially legal entities working in the hotel, restaurant and tourism areas:

1. Under the “Human Resources Development” Operational Programme a new “Employment for you” procedure has been launched, aimed at the economic operators in the sectors – “Hotel and restaurant business” and “Tour operator activity”. The main objective of the measure is to provide support for the reintegration of the unemployed who have lost their jobs as a result of the pandemic and the spread of the coronavirus COVID-19. The procedure allows for direct granting until the end of 2020, in the total amount of BGN 160 million, for which a specific beneficiary is the Employment Agency.

The budget is distributed on a quota basis by municipalities, depending on the unemployment level and the number of newly registered unemployed after March 13^th, 2020, as BGN 50 million are primarily provided for the two sectors – “Hotel and restaurant busines” and “Tour operator activity”.

The main activities are hiring the unemployed (registered with the Labor Offices die to the COVID-19 pandemic) full-time or part-time (minimum 4 hours per day) for a period of up to 3 months and coverage the minimum wage and insurance at the employer`s expense.

The two priority sectors – “Hotel and restaurant activity” and “Tour operator activity” can declare according to the number of employees as of February 29^th, 2020, the following:

-Up to 2 positions with e number of employees up to 10;

-Up to 10 positions with a number of employees up to 50;

-Up to 50 positions with a number of employees up to 250;

-Up to 100 positions with a number of employees up to 251.

In all other sectors:  Up to 2 positions with a number of employees up to 10; -Up to 10 positions with a number of employees up to 50; Up to 30 positions with a number of employees up to 250; Up to 60 positions with a number of employees up to 251.

It is estimated that about 70,000 unemployed will be in a new job, incl. as self – employed, when living the scheme, incl. up to 29 years of age with primary or lower education, as well as with completed secondary or higher education and over 30 years of age.

1. The second measure of the “Employment х 3” package is a continuation of the State Employment Support Scheme (financed under the Human Resources Development Operational Programme), which gained popularity as 60/40.

A Decree, adopted at a meeting of the Council of Ministers on July 1^st, 2020, determines the terms and conditions for payment of funds for maintaining the employment of employees and workers after the state of emergency, announced by a Decision of the National Assembly on March 13^th, 2020, and the extraordinary epidemic situation declared by Decision No. 325 and Decision No. 378 of the Council of Ministers.

Funds for maintaining employment in the amount of 60 percent of the amount of insurance income for May 2020 and from the due insurance contributions at the employer`s expense for each insured employee will be paid to employers who meet the regulated terms for maintaining employment, as of July 1^st, 2020 to September 30^th, 2020.

The measure can also benefit employers who hire seasonal workers, hired after June 1^st, 2020 in the Hotel and restaurant activity sector. The employer pays remuneration in the amount not less than the amount of the minimum insurance income for the position and pays the due insurance contributions for the respective month.

Two of the general requirements do not apply to hoteliers and restaurateurs, namely:

•   the requirement that workers and employees have been employed before March 13^th, 2020, will not apply, i.e. funds for maintaining employment will be paid to hoteliers and restaurateurs of workers and employees and for seasonally employed;

•   the requirement to keep seasonal workers for an additional period equal to that for which they received benefits will not apply.

1. The third measure of the “Employment х 3” package is the so-called “additional option of the 60/40 measure”, which aims to support the tourism and transport sectors by paying compensations to employers.

With Decision of the Council of Ministers No. 429 of June 26^th, 2020, the terms and conditions for payment of compensations to employers in order to keep the employment are determined, the compensations are paid for a whole calendar month, as of July 1^st, 2020, but for no more than 6 months and will be in the amount of BGN 290 for each employee and worker, as well as for self-employed persons.

The employer will be able to pay to each employee of the target group a net amount of BGN 189. The set budget is BGN 40 million.

The compensations will be paid on the basis of the insurance income of the employee for the month of May 2020.

Operationally, the Ministry of Tourism, in coordination with the Ministry of Labor and Social Policy, will develop special guidelines for employers in the tourism sector to apply for the new package of measures - “Employment x 3”.