Advanced search

Employment incentives under the Employment Encouragement

Employment incentives (training and job creation) under the Employment Encouragement Act

 

Employment Agency Incentives

 

Employment incentives

 

Each Bulgarian citizen, as well as each citizen of another Member State of the European Union or of another Contracting State to the Agreement on the European Economic Area, who is actively seeking a job, may register with the competent local division of the Employment Agency.

1. Programs and measures for employment of young and/or disadvantaged people on the labor market in Bulgaria

If the requirements below are met, the Employment Agency may cover the amount of salary expenses and the due social and health security installments to the account of the employer for the duration of the employment contract for each hired person (but for no longer than 12 months), as well as the expenses for training for acquiring professional qualification (for no longer than 6 months).

Requirements (Eligibility criteria):

  • The person has to be directed by the division of the Employment Agency on the basis of contract between the Agency and the employer;
  • Unemployed up to 29 years of age - (Providing employment from employer for minimum 12 months, the period of subsidization is not more than 6 months);
  • Unemployed up to 29 years with reduced working capacity or from social institutions who have completed their education - (Providing employment from employer for minimum 12 months, the period of subsidization is not more than 6 months, for each unemployed person hired the subsidy will be BGN 240 for persons with secondary and lower education, BGN 300 for persons with higher education);
  • Unemployed persons up to 29 years old, acquired in the last 24 months training in a vocation or part of the job required for the position, who have no work experience in this profession (Providing employment from employer for minimum 9 months, the period of subsidization is not more than 9 months, for each unemployed person hired the subsidy will be BGN 240);
  • Unemployed with permanently reduced working capacity (Providing employment from employer for minimum 12 months, the period of subsidization is not more than 6 months, for each unemployed person hired the subsidy will be BGN 240 for persons with secondary and lower education, BGN 300 for persons with higher education);
  • Unemployed – single parents (adoptive parents) or mothers (adoptive mothers) with children up to 3 years of age (Providing employment from employer for minimum 12 months, the period of subsidization is not more than 6 months, for each unemployed person hired the subsidy will be BGN 240 for persons with secondary and lower education, BGN 300 for persons with higher education);
  • Unemployed women over 50 years of age and men over 55 years of age (Providing employment from employer for minimum 12 months, the period of subsidization is not more than 6 months, for each unemployed person hired the subsidy will be BGN 240 for persons with secondary and lower education, BGN 300 for persons with higher education).

 

The same incentive is valid for employer who accepts for training for acquiring professional qualification and/or for work on probation unemployed persons under 29 years of age, directed by the divisions of the Employment Agency on the basis of a contract concluded, for the term of education or work on probation, but for no longer than 6 months.

 

2. Employment Protection and Employment Security

Programs and measures for training and qualification

An employer who provides maintaining and improvement of the qualification of the hired workers and employees can apply for granting of half of the maximum determined size of the amounts for training of one person (the maximum amount is BGN 500 according to the National Operative Employment Plan).

Steps of the procedure:

  • The local division of the Employment Agency - “Employment Bureau”, announces every month on an information board and in at least two local or regional mass media the encouragement measures, for which contracts can be concluded with employers during the following month;
  • The employer submits an application at the local Employment Bureau and files a declaration to keep the employees for at least 6 months after the successful end of the training;
  • In 3 days of the expiry of the application term, the Council for cooperation discusses the submitted applications and proposes to the director of the Employment Bureau a list of the employers with whom contract could be concluded during the respective month;
  • A list of the approved employers is placed on the information board of the Employment Bureau.

 

The employer has the right to indicate the organization to carry out training for acquiring professional qualification, within the frames of the maximum amount of resources for training of one person (BGN 500).

 

Additional information about other programs encouraging employers is available on the website of the Employment Agency under www.az.government.bg.

3. Tax deduction for employing individuals in specific social conditions

The employer is entitled to deduct from its taxable profit, as an additional allowance, an amount equal to the remunerations, social, health and unemployment insurance paid for the following employees employed for a period of at least 12 months:

  • § Individuals who have been registered as unemployed for a period exceeding one year; or
  • § Individuals who have been registered as unemployed and are of more than 50 years of age; or
  • § Disabled persons who have been registered as unemployed.

 

The above tax allowance is to be used at the end of the calendar year during which the 12-month period of employment expires.