Bulgaria‘s transitional cabinet on October 6 approved the extension of its main wage support program, which was introduced as a measure to reduce the economic impact of the Covid-19 pandemic, until the end of 2021.
The cabinet said in a statement that the scheme known as “60:40” will apply retrospectively for the months of August and September.
The measure introduced last year is intended to preserve jobs by the state assuming 60 percent of the wage costs, while the employer has to pay the rest.
Between March 2020 and June 15 of this year, the Bulgarian government disbursed more than 1.27 billion leva (almost 653 million euros) on July 2, according to the Ministry of Finance.
The Cabinet Declaration did not estimate the cost of extending the measure until the end of the year.
The system has now been optimized and employers are entitled to 60 percent of wage costs as state compensation if their sales have fallen by more than 40 percent of the average monthly sales for 2020.
In cases where this drop is more than 30 percent, employers will receive 50 percent of the wage bill as state compensation, the cabinet statement said.
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