Companies affected by the economic crunch can apply for Government benefits in the form of compensation, or "crisis" salaries, starting March 9, Dnevnik daily reported. Those salaries will be granted to workers who will be put on reduced working hours, instead of being sacked.

The Government will be paying up to 120 leva as supplementary benefits to their wages for up to three months. The average monthly salary in 2008, according to Government statistics, was 524 leva.

The scheme is one of the main anti-crisis measures announced by the Cabinet to prevent workers from being made redundant as companies struggle in times of financial crunch. That way, there will be less unemployed on the streets while companies will be able to preserve their qualified personnel, according to the Government's plan.

The Cabinet has allocated 6.7 million leva to this purpose, based on an analysis put forth by the Labour Ministry. Companies have to submit their applications to the ministry, which will have the final say on which companies will receive any funds.

The main criteria is for a company has to prove that its sales and/or business were directly affected by the economic crunch. Accordingly, assistance will be granted to up to five per cent of the personnel for part time employment for a minimum of two months.

Companies must present receipts and business analysis for the previous three months and they will be compared by the volume of business as opposed to the same time last year. The biggest financial assistance will be received from establishments who have suffered more than 51 per cent drop in sales.