Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure BG-2003-1/2596 – measures in Bulgaria
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) |
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.
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).
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.
Workers | Businesses | Citizens |
---|---|---|
Employees in standard employment
Unemployed |
SMEs
|
Does not apply to citizens |
Actors | Funding |
---|---|
National government
Public employment service |
National funds
|
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
Unknown
Citation
Eurofound (2022), Encouraging micro enterprise employers to hire unemployed, measure BG-2003-1/2596 (measures in Bulgaria), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/BG-2003-1_2596.html
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