The European Commission has approved a Bulgarian wage compensation scheme of 51m euros (100m levs) to support companies and the self-employed working in sectors particularly affected by the coronavirus pandemic and the restrictive measures the Bulgarian government had to apply to limit the spread of the virus. The measure was approved under the Temporary Framework for State Aid, the European Commission said.
Under the scheme, the aid will take the form of compensation, which partially covers the loss of income of employees and the self-employed at 75% of their social security income. Public support aims to avoid redundancies and to help beneficiaries resume operations.
The Commission found that the Bulgarian scheme met the conditions set out in the Temporary Framework. In particular, public support will help businesses that are particularly affected by the coronavirus pandemic and aim to avoid redundancies; the monthly compensation of salaries shall not exceed 80% of the gross monthly salary of the staff benefiting from the benefits or of the income of the self-employed; and the aid will be granted before 31 December 2021.
“The Commission concludes that the measure is necessary, appropriate and proportionate to address serious difficulties in the economy of a Member State in accordance with Article 107 (3) (b) TFEU and the conditions set out in the Temporary Framework. On this basis. The Commission has approved the measure in accordance with EU state aid rules, “the European Commission said in a statement.
