Changes in the Decree for determining the conditions and procedure for payment of compensation have been introduced

On 21 April 2020, Decree No. 71 of 16 April 2020 amending and supplementing Decree No. 55 of 30 March 2020 for determining the conditions and procedure for payment of compensation to employers in order to preserve the employment of the employees during the state of emergency („Decree amending and supplementing Decree No. 55“).

The Act for Amendment and Supplement of the Act on Measures and Actions during the State of Emergency necessitated the amendment in the original text of Decree No. 55 of the Council of Ministers of 30 March 2020.

The Decree amending and supplementing Decree No. 55 introduces the following important changes and clarifications:

• The amount of compensation will be 60 per cent of the insurance income for January 2020 and also of the contributions paid by the employer for each employee to whom suspension of work or part-time regime is applied.
• It is clarified that no compensation will be paid to employers whose employees are in unpaid leave. 
• The initially pooped question in regard of the remuneration due to employees for whom part-time work regime in the enterprise or part of it is introduced. A new provision has been created to specify that an employer who is compensated under a fixed part-time regime has to pay the full amount of the wage to his employees who are subject to the relevant regime, and shall pay the relevant social security contributions for the respective month.
• The text on payments is refined. It is specified that NSSI will pay compensation to the employers on a monthly basis. 

The Decree amending and supplementing Decree No. 55 enters into force on the day of its promulgation in State Gazette. Its provisions will also apply to employers who have already applied for compensation before its entry into force.

Deloitte Legal Law Firm remains at your disposal for further information and questions. Deloitte Legal Law emergency contacts: 

• Attorney-at-law Reneta Petkova - Managing Partner, Banking and Finance, email: rpetkova@deloittece.com
• Attorney-at-law Georgi Simeonov – Director, Tax practice, email: gsimeonov@deloittece.com
• Attorney-at-law Zvezdelina Filova - Senior Manager, Labour and Commercial Disputes, email: zfilova@deloittece.com
• Attorney-at-law Miglena Micheva - Manager, Labour Law, email: mmicheva@deloittece.com
• Attorney-at-law Kaloyan Yordanov - Manager, Commercial and Corporate Law, email: kyordanov@deloittece.com  
• Attorney-at-law Adelina Mitkova - Manager, Banking and Finance, email: amitkova@deloittece.com 
• Attorney-at-law Pavlin Stoyanoff - Manager, Energy and Resources, email: pstoyanoff@deloittece.com