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Factsheet for measure BG-2003-1/2596 – measures in Bulgaria

Encouraging micro enterprise employers to hire unemployed

Насърчаване на работодатели-микропредприятия да наемат безработни лица

Country Bulgaria , applies nationwide
Time period Open ended, started on 01 January 2003
Context Restructuring Support Instruments
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery into a green future
– Active labour market policies (enhancing employability, training, subsidised job creation, etc.)
Author Ekaterina Markova (IPS-Bas) and Eurofound
Measure added 23 June 2022 (updated 04 November 2022)

Background information

Employers-micro enterprises registered under the current legislation, shall be granted amounts in accordance with Article 30a(2) for a period not exceeding 24 months for the first five jobs created which employ unemployed persons, referred by the Employment Agency (Art.50, Law for encouraging the employment). Employers who hire unemployed people for the first five jobs they create. The company must be a micro enterprise.

Content of measure

The measure Encouraging micro enterprise employers to hire unemployed is aimed at job creation by facilitating the recruitment of people who are unemployed.

When new jobs in a micro enterprise become available, employers receive a subsidy for a period of 9 months if they hire unemployed people for a period of at least 18 months, referred to them by the National Employment Agency for the first 5 vacant jobs.

For each unemployed person employed for the time he/she has been employed, funds from the State budget are provided for:

  • wages, in the amount of BGN 650 (approx. €320);

  • additional remuneration at the minimum rates established in the Labour Code;

  • Remuneration for basic paid annual leave (Article 155 or Article 319 of the Labour Code);

  • the cash remuneration (Article 40(5) of the Social Security Code);

  • The social security contributions payable at the expense of the employer, on the gross wages received, including accrued and unpaid gross wages, or on the gross wages not accrued, including the wages (items 3 and 4, pursuant to Article 6, paragraph 3 of the Social Security Code).

Use of measure

The National Action Plan for Employment 2020 reported that in 2019 this measure supported employment for 615 unemployed people (including 334 newly recruited people). The measure was financed by the state budget with BGN 1,520 million (approx. €777,000).

The National Action Plan for Employment 2020 will support employment of 337 unemployed people (including 200 newly recruited people). The measure is financed by the state budget with BGN 1,167 million (approx. €597,000).

According to the Annual report of the Employment agency for 2017 this measure supported employment of 932 people (19.2% more than the 782 initially planned).

In the period January-September 2015, according to the National Action Plan for Employment 2016, this measure provided employment to 123 people (95.3% of the 129 persons initially planned).

The 2014 National Action Plan for Employment allowed 338 people to access employment. Among them, 100 were recruited (that is employed under the measure of the Operative Programme, not having previous relationships with the same employer), at the total state budget of 488,750 BGN (€249,893).

According to the report of the National Employment Agency for the first half of 2008, 1,935 workers were employed through this measure (5.9% more than the 1,883 initially planned). Several years later, the number of participating people decreased and, according to the National Employment Agency Annual report 2012, 153 people were included in the programme in 2012 (eligible to participate, applications accepted, but not employed), and 148 people employed. In comparison, 194 people were included and 141 employed in 2011.

The measure encourages employment activation and labour market (re)integration of unemployed people by subsidising jobs in micro enterprises. 

The measure's effectiveness depends on the employer's willingness to participate in the programme and on whether they have vacant jobs or not.

Employed individuals with appropriate skills willing to change their job may be disadvantaged compared to an unemployed person with less training. Therefore, the instrument may promote unfair employment practices.

Target groups

Workers Businesses Citizens
Employees in standard employment
Does not apply to citizens

Actors and funding

Actors Funding
National government
Public employment service
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Unknown Unknown
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Unknown



Views and reactions




Eurofound (2022), Encouraging micro enterprise employers to hire unemployed, measure BG-2003-1/2596 (measures in Bulgaria), EU PolicyWatch, Dublin,


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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.