In what period can compensation under Art. 222 para. 1 be presented to the employer upon termination of the employment relationship under Art. 328, paragraph 1 item 2 of the Criminal Code, how should it be charged and what contributions are due on this compensation?
CT scan
Art. 222. (1) In case of dismissal due to closure of the enterprise or part of it, redundancies in the state, reduction of the volume of work, suspension of work for more than 15 working days, in case of refusal of the worker or employee to follow the enterprise or its division, in which he works, when it is moved to another settlement or locality, or when the position held by the worker or employee must be vacated for the reinstatement of an illegally dismissed worker or employee who previously held the same position, the worker or employee is entitled to compensation from the employer. The compensation is in the amount of his gross remuneration for the time during which he was unemployed, but for no more than 1 month. An act of the Council of Ministers, a collective labor agreement or the employment contract may provide for compensation for a longer period. If in this period the worker or employee started a job with a lower wage, he is entitled to the difference for the same period
As can be seen from the provision, a worker or an employee who has lost his job on the basis of the stated grounds has the right to compensation for up to 1 month or for a longer period, if such is provided for in a collective labor agreement, as well as in the cases in which he started work at lower remuneration. The compensation is in the amount of gross salary. . The law does not regulate a period in which the worker or employee can present his claim to the employer. In this regard, the limitation period until which the worker or employee has the right to claim his claim in court is 3 years.
Sample from CSR
Art. 9. The insurance period is calculated in hours, days, months and years. The following are considered to be social security experience:
……
(1) item 5, during which the person received compensation for the time during which he was unemployed under the Labor Code, the Civil Servant Act and the Higher Education Act; for this period, insurance contributions are made on the compensation received; for employees, insurance contributions are distributed according to Art. 6, para. 3, items 8 and 9.
………….
(5) The insurance contributions under para. 3 are in the amounts for the “Pensions” fund, respectively the “Pensions” fund for persons under Art. 69″ and for additional mandatory pension insurance and the Teachers’ Pension Fund. In the cases under para. 3, item 5, no insurance contributions are due for the Teachers’ Pension Fund.
According to the provisions of Article 9 item 5, insurance contributions are due on the amounts. This means that, regardless of when the worker filed his claim (within the 3 years), the employer is obliged to charge the corresponding compensation, as well as submit Declaration 1 Declaration 6. In Declaration 1, the person is indicated by a code .27.
The compensation is calculated on the basis of the gross remuneration in the month preceding the month of unemployment.
The time does not fall within the scope of Art. 354 of the Civil Code and is not recognized as work experience.
Health insurance is not paid on the amount of this benefit.
Sample ZDFL
Art. 24 (2) Taxable income from employment relationships does not include:
8. benefits under Art. 200, Art. 216, para. 1, items 1 and 2, para. 2 and 3, Art. 222, para. 2 and 3 and Art. 226, para. 3 of the Labor Code, benefits under Art. 227, 229, 232 of the Law on Defense and Armed Forces of the Republic of Bulgaria, under Art. 67, para. 2 and 3, Art. 121 and Art. 124 of the Law on the National Security Service, under Art. 234, para. 1 – 7 and Art. 236 of the Law on the Ministry of Internal Affairs, under Art. 74, para. 4 and Art. 117 of the Law on State Agency “National Security”, under Art. 225, Art. 277, para. 3 and Art. 354 of the Law on Judiciary and Compensation under Art. 78, Art. 81b, para. 4, Art. 82, para. 5, Art. 85, para. 5, Art. 104, para. 3 and 4 and Art. 106, para. 3 of the Civil Servant Act;
The compensation under Art. 222 paragraph 1 is subject to personal income tax
December 2022
Author of the answer: Eleonora Bilbileva
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