Our team of law firm “Kolybanekova & Partners” has many years of experience and expertise in the field of labor law. We are here to provide you with professional legal assistance when appealing a refusal to pay retirement benefits. In this material, we will consider in detail the key aspects of this important issue.

The first question we will look at is whether the employer is obliged to pay compensation in retirement. Also, we will discuss the procedure for applying for the payment of compensation in retirement and what are the special cases in which compensation is claimed.

Next, we will pay attention to the methods of calculation of retirement benefit, including how the six gross salaries are determined and whether he is entitled to two gross salaries upon retirement a year earlier. We will also explain how this benefit is taxed so that you are informed about all financial aspects.

An important part of the material will also be the consideration of the procedure for submitting an application for payment of compensation under Art. 222, para. 3 of the Labor Codeand repayment terms. We will also discuss cases in which payment of compensation is refused and what are your rights and options for appealing such a refusal.

Our employment lawyers work in all regional cities in Bulgaria, including: Sofia, Plovdiv, Varna, Burgas and Stara Zagora. You can always count on us for competent legal assistance and assistance in resolving your labor disputes.

If you need a good lawyer in labor law, our team is at your disposal to help you protect your rights and interests. With us, you can be sure that you will receive professional treatment and quality legal assistance at every step of the process.

Is the employer obliged to pay compensation in retirement?

Yes, according to the Bulgarian labor legislation, the employer is obliged to pay compensation upon retirement under certain conditions established in the Labor Code (TC). Art. 222, para. 3 of the TC provides that upon termination of the employment relationship, after the worker or employee has acquired the right to a pension for insurance seniority and age, regardless of the grounds for termination, he is entitled to compensation from the employer. The amount of this benefit is equivalent to gross remuneration for a period of two months. If the employee has acquired 10 years of service with the same employer or group of undertakings in the last 20 years, the benefit shall be equal to gross remuneration for six months. This type of compensation can be paid only once.

Retirement benefit is intended to provide financial support to the worker or employee in his or her retirement. The law makes no distinction as to the basis for termination of the employment relationship, which means that the worker or employee is entitled to compensation both upon voluntary departure and upon dismissal. It is important to note that if the worker or employee has acquired the right to a pension for insurance seniority and age in a reduced amount under Art. 68a of the Social Security Code, the right to compensation also applies.

The employer is obliged to pay the benefit no later than the last day of the month following the month in which the legal relationship was terminated. In the event that another payment term is agreed in the collective agreement, it applies. In case of failure to meet this deadline, the employer owes the statutory interest on the amount of the benefit. In the event of a dispute about the due or amount of compensation, the worker or employee may seek his rights in a judicial order.

What is the right to benefit in retirement under Art. 222 of the Labor Code?

Retirement benefit is regulated in Art. 222 of the Labor Code (TC) and aims to provide financial assistance to workers upon termination of their employment relationship due to retirement. Here is what the law provides:

Compensation upon termination of the employment relationship with the right to a pension (Art. 222, para. 3 of the TC):

According to Art. 222, para. 3 of the Labor Code, upon termination of the employment relationship after the employee has acquired the right to a pension for insurance seniority and age, regardless of the reason for the termination, he is entitled to compensation from the employer in the amount of his gross remuneration for a period of two months. If the employee acquired under the same employer or in the same group of enterprises 10 years of work experience in the last 20 years, he is entitled to compensation in the amount of his gross remuneration for a period of six months.It is important to note that compensation under this paragraph can be paid only once.

Retirement benefit of a reduced amount (Art. 222, para. 4 of the CT):

Article 222, paragraph 4 of the Bulgarian Labour Code states that the right to compensation also applies when, upon termination of the employment relationship, the worker or employee meets the conditions for granting a pension for insurance seniority and reduced age under Article 68a of the Social Security Code (CSC). This means that even if a person decides to retire up to one year earlier than the age under Art. 68, para. 1 of the CSO, he is still entitled to compensation under Art. 222 of the CT.

Acquisition of the right to a pension:

According to Art. 68 of the Civil Code, the right to a pension for seniority and old age is acquired upon reaching the age of 60 years and 10 months by women and 63 years and 10 months by men and insurance seniority of 35 years and 2 months for women and 38 years and 2 months for men. From December 31, 2016, the age increases annually until it reaches 65 years for both sexes.

Persons who do not have the required age or seniority, but have reached the age of 67 and have at least 15 years of actual insurance experience, may also be entitled to a pension under paragraph 3 of Article 68 of the Code of Civil Procedure.

Pension for seniority and age in a reduced amount (Art. 68a of the Civil Code):

Persons who have the required insurance experience under Art. 68, para. 2, may, at their request, retire up to one year earlier than their age under Art. 68, para. 1. The pension in this case is granted in a reduced amount for life.

If you have questions or need legal assistance regarding the right to a retirement benefit, do not hesitate to contact our employment law lawyers. We are at your disposal in all regional cities in Bulgaria, including Sofia, Plovdiv, Varna, Burgas and Stara Zagora. Our team will provide you with competent legal assistance and help you protect your rights and interests.

How is the amount of 2 or 6 gross salary compensation in retirement calculated in Bulgaria?

The calculation of the amount of retirement benefit in Bulgaria is regulated in Art. 228 of the Labor Code (TC). Here's how this calculation is done:

Determination of gross remuneration within the meaning of Articles 222 and 228 of the Labor Code

The determination of gross remuneration, which serves as the basis for calculating retirement benefits, is an important aspect of labor law in Bulgaria. The Labor Code and the Regulation on the Structure and Organization of Wages (NSORZ) specify specific rules and components that are included in the gross remuneration.

According to Article 228, paragraph 1, of the Labor Code, the gross labor remuneration for determining benefits is the remuneration received by the worker or employee for the month preceding the month in which the basis for the benefit arose, or the last received monthly gross labor remuneration, unless otherwise provided for. That is, when calculating the benefit, the last received full monthly salary before the termination of the employment relationship is taken into account.

Components of gross remuneration

The NSRP lists the specific elements that are included in the gross remuneration for determining benefits. These include:

1. Basic salary for the time worked:This is the main remuneration agreed in the employment contract for the performance of labor tasks.
2. Remuneration above the basic salary:Additional remuneration, which is paid according to the applied labor remuneration systems, is also included in the gross remuneration.
3. Additional remuneration:These remuneration, determined by the ordinance, other regulatory act, collective or individual employment contract or internal act of the employer, which are of a permanent nature, are also part of the gross remuneration. For example, additional labor remuneration for acquired work experience and work experience, remuneration for educational degrees, etc.
4. Additional remuneration in case of internal replacement under Art. 259 of the CT:This includes the remuneration that is paid to employees for the temporary performance of duties in another position.
5. Remuneration under Art. 266, para. 1 of the CT:Such remuneration shall be paid for work done under exceptional conditions, where this is agreed.
6. Remuneration for stay or due to production necessity under Art. 267, paras. 1 and 3 of the TC:Remuneration paid for the time during which the worker or employee was at the disposal of the employer without performing his usual duties due to stay shall also be included.
7. Remuneration under Art. 268, paragraphs 2 and 3 of the CT:Included are the remuneration paid for additional work, laid in the order of Art. 268 of the CT.

Average Daily Gross Remuneration

If the employee has not worked a full month, the gross labor remuneration for calculating the benefit is determined by calculating the average daily gross remuneration. This is done by dividing the total gross remuneration for the last full month in which at least 10 days were worked by the number of days worked in that month and multiplied by the number of working days in the month in which the employment relationship was terminated.

Examples

1. Example of basic remuneration and supplements:
   • The worker receives a basic salary of BGN 1500 and additional remuneration for work experience in the amount of BGN 150. If he terminates his employment relationship in May, his last full salary from April will be taken as a base. The total gross remuneration for April will be 1650 BGN.
2. Example of average daily pay:
   • If in April the worker worked only 15 days and received a total salary of 1200 BGN, his average daily wage will be 1200 /15 = 80 BGN. If there are 20 working days in the month of May, the gross remuneration for calculating the benefit will be 80 x 20 = 1600 BGN.

Thus, the determination of gross remuneration within the meaning of Articles 222 and 228 of the Labor Code is based on clear rules that include all the essential components of the employee's remuneration in order to ensure a fair and correct calculation of benefits in retirement.

Inclusion of additional remuneration

In determining gross remuneration, all elements of the remuneration received by the worker in the month preceding the termination of the employment relationship shall be included. This also includes additional remuneration paid on the basis of a percentage of earned income or other conditions provided for in the employment contract or supplementary agreements, even if these payments are not regular and are paid only under certain conditions.

Examples of calculation

1. Two gross salaries:
   • If the employee is entitled to compensation in the amount of two gross wages, the calculation is made on the basis of the gross remuneration for the last month before the termination of the employment relationship. For example, if the final gross remuneration is 2000 BGN (basic remuneration plus additional remuneration), the compensation will be 2000 BGN x 2 = 4000 BGN.
2. Six gross salaries:
   • If the worker is entitled to compensation in the amount of six gross wages (for example, for 10 years of service with the same employer in the last 20 years), the calculation is again based on the last gross remuneration. If the last gross remuneration is 2000 BGN, the compensation will be 2000 BGN x 6 = 12,000 BGN.

Term of payment of compensation, important aspects and features

• Benefit in case of reduced pension: According to Art. 222, para. 4 of the TC, the right to benefit also applies to a reduced pension under Art. 68a of the Social Insurance Code (CSC). This means that if the worker is eligible for a reduced pension, he is also entitled to a retirement benefit.
• Payout Term: The benefits due upon termination of the employment relationship shall be paidt no later than the last day of the month following the month in which the legal relationship was terminated. If another term is agreed in the collective agreement, it applies, and in case of default, the employer owes the statutory interest for the delay.

The calculation of the amount of the retirement benefit in Bulgaria is a process that involves an accurate determination of the gross remuneration for the last month before the termination of the employment relationship. Any additional remuneration received by the worker or employee during that month is included. If you have any further questions or need legal assistance in calculating your compensation, our lawyers are available in all regional cities in Bulgaria.

How to appeal a refusal to pay compensation in retirement?

Appealing a refusal to pay compensation under Art. 222 of the Labor Code requires the worker or employee to take several specific steps. First, the worker must make sure that he has all the necessary documents proving his right to compensation - employment contract, documents on insurance experience, as well as any other relevant documentation. If the employer refuses to pay the benefit, the employee must ask for a written explanation of the reasons for the refusal. This step is important because the written explanation will serve as evidence in the subsequent appeal process.

After receiving the written explanation from the employer, the employee can file a complaint with the Labor Inspectorate. The complaint must describe all the facts and circumstances of the case, as well as attach copies of all documents that support the claims of the employee. The labor inspectorate has the obligation to conduct an inspection and rule on the case, being able to impose sanctions on the employer if it finds violations of labor legislation.

If the Labor Inspectorate fails to resolve the dispute or if the worker is not satisfied with the decision, the next step is to file a lawsuit in court. The worker must file a statement of claim with the competent district court, in which he sets out all the facts and circumstances, as well as indicating the legal grounds for his claim for payment of the compensation. It is important to attach all the necessary evidence, including correspondence with the employer and the opinion of the Labor Inspectorate.

In the legal process, the worker can be represented personally or through a lawyer. The court will consider all the evidence presented and make a decision. If the court finds that the employer's refusal is unlawful, it will order payment of the compensation due, as well as may award legal interest for the period of delay. In the event that the employer does not voluntarily comply with the court decision, the employee may request the issuance of a writ of execution and take enforcement actions through a bailiff.

Appealing a refusal to pay compensation under Art. 222 of the Labor Code requires activity and commitment on the part of the worker or employee. It is important to follow all legal procedures and deadlines to ensure the successful protection of rights. Each step in the process must be supported with the necessary documentation, evidence and legal grounds for the claim to be successful and fair compensation to be obtained.

How to appeal illegal dismissal, including to a civil servant, in order to avoid the payment of compensation in retirement?

Appealing against unlawful dismissal, including of a civil servant, in order to avoid the payment of compensation upon retirement, requires careful observance of the procedures and deadlines provided by law. Here's how it's done:

First, the dismissed employee must assess whether the dismissal was legal or illegal. This includes checking the grounds for dismissal and whether they correspond to those provided for in the Labor Code (TC) or the Civil Servant Act (ZDSL). Unlawful dismissal may be present in the absence of a lawful basis, violation of dismissal procedures or discrimination.

If the employee considers the dismissal illegal, he must file a lawsuit in court. The statement of claim is filed with the district court at the place of residence of the employee or at the location of the employer. The application must state all the facts and circumstances supporting the allegation of unlawful dismissal and attach the relevant evidence.

Special order for civil servants

For civil servants, the appeal of illegal dismissal has its own peculiarities. A civil servant can file a complaint with the administrative court at the place of work. The complaint must be filed within 14 days of receipt of the dismissal order. The court will consider the case and rule on the legality of the dismissal. If the dismissal is recognized as illegal, the court may order the restoration of the civil servant to work and the payment of the benefits due.

Judgment and follow-up

The court considers the case and, if it finds that the dismissal is illegal, it will order to restore the employee to work and pay the compensation due. The decision of the court is mandatory for enforcement. If the employer does not execute it voluntarily, the employee may request the issuance of a writ of execution and take enforcement actions through a bailiff, unless the employer is a state-owned enterprise, where the procedure is more specific!