Compensation of 60% of insurable earnings during the state of emergency    


  • Only applies to labour agreements.
  • Unconditional for employers, whose operations have been discontinued by order for the duration of the state of emergency.
  • For the rest of the businesses – in case of a minimum of 20% decrease in revenue compared to March 2019         

BUSINESS CATEGORIES (discontinued by order for the duration of the State of emergency)

  • retail in shopping centres (with the exception of retail of food, medicines and cigarettes)
  • certain kinds of passenger transportation services
  • hospitality
  • restaurants and fast-service establishments, drinking establishments
  • cinemas
  • tour operators
  • organization of convention and trade shows
  • private kindergartens
  • theatres and other creative and arts activities, culture
  • sports and other entertainment and recreational activities, physical well-being activities     


1) The Employer

  • is a local natural person / legal entity or a foreign legal entity engaged in business activities in the Republic of Bulgaria
  • does not receive funding for remuneration and social security contributions from the state budget, with European structural and investment funds (ESIF) or other public funds
  • should pay the full amount of the person's remuneration for the month in question
  • does not have any outstanding public liabilities, except for those that are deferred, disbursed or secured
  • has not been declared insolvent and is not in insolvency or liquidation proceedings
  • do not terminate employment contracts on the following grounds: closure of part of the enterprise or redundancy; reduction of the workload or discontinuance of the labour activity for more than 15 working days during the period for which they are compensated
  • there is no violation of the provisions of the Labour Code established by a penal decree or court decision   

2) The duration

  • for the duration of the State of Emergency Measures Act
  • for a maximum of 3 months      

3) The amount of the compensation

  • 60 % of the amount of the insurable earnings of the person for January 2020   


    1) Required documentation

    • an application form
    • Order for discontinuance of the operations during a declared state of emergency
    • Declarations for the circumstances: (i) maintaining the employment of the persons and (ii) absence of dismissals of employees and workers on the basis of Art. 328, par. 1, items 2, 3 and 4 of the Labour Code during the period for which compensations are paid
    • a list of the workers and employees
    • a bank account
    • Declaration by the employer and evidence for the decrease in revenue   

    2) Procedure

    • 7 working days deadline for review and performance of an official conformity check
    • Payment of the compensation is performed by the National Social Security Institute (NSSI)   


    • What act will confirm or reject the application of the employer?
    • What is evidence for decrease in revenue?
    • In what order will refusals for compensation be appealed?

    If you have these or other questions, please contact Dennitsa Dimitrova and Andrey Alexandrov.

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