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Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case HR-2021-4/1747 – measures in Croatia

Seafarers proclaimed key workers and obtain exemption payment of personal income tax

Pomorci proglašeni ključnim radnicima i ostvarili izuzeće od plaćanja poreza na dohodak

Country Croatia , applies nationwide
Time period Temporary, 20 January 2021 – 31 March 2021
Type Legislations or other statutory regulations
Category Ensuring business continuity and support for essential services
– Remuneration and rewards for workers in essential services
Author Predrag Bejalovic (IJF) and Eurofound
Case created 01 February 2021 (updated 02 February 2021)

Background information

Many Croats are working as maritime officers and seafarers on foreign ships, according to the estimation by Seafarers’ Union of Croatia, total number of employees from Croatian on domestic owned ships under foreign flags and foreign ships was around 20,000. Seafarers’ Union of Croatia (which also as members has Croatia on foreign ships) has demanded for months to the responsible Ministry of the Sea, Transport and Infrastructure to proclaim seafarers as key workers during the COVID-19 crisis

Content of measure

Now more than ever, the society depends on the seafarers to maintain the supply lines and communication between the mainland and islands. Seafarers are working intensely together to respond to the Covid-19 crisis. On 20 January, 2021, the responsibly Ministry of the Sea, Transport and Infrastructure has upgraded the e-Pomorac Internet public service system, which is located within the e-Citizens system. It enables seafarers the registration of the navigation service and performed working days. All Croatian seafarers, who in 2020 were embarked on ships in international navigation without the mediation of a shipowner, company or intermediary in the employment of seafarers, should report until 31 January 2020, on the realized navigation service in 2020. These days should be in accordance with the provisions of the Maritime Act (OG 181/04, 76/07, 146/08, 61/11, 56/13, 26/15, 17/19) and the Minister’s Direction (KLASA: 810-03/20-01/30 URBROJ: 530-04-20-6 Zagreb, from 24 April 2020). If they obtain recognition of 183 days of work on international ships they are exempt from payment of the personal income tax for seafarers during the pandemic COVID-19. For the Croatian seafarers, who in 2020 were embarked on ships in international navigation with the mediation of a shipowner, company or intermediary in the employment of seafarers, the mentioned registration will be realized by the responsible bodies.

Use of measure

It is hard to estimate the exact number of seafarers who will obtain mentioned right, but according to the assessment by Seafarers’ Union of Croatia, from total number of employees from Croatia on domestic owned ships under foreign flags and foreign ships (around 20,000) from a half to two thirds will fulfilled mentioned criteria of 183 on foreign ship.

Target groups

Workers Businesses Citizens
Particular professions
Does not apply to businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Negotiated
Form Any other form of consultation, institutionalised (as stable working groups or committees) or informal Any other form of consultation, institutionalised (as stable working groups or committees) or informal

Social partners' role in the implementation, monitoring and assessment phase:

  • Only trade unions
  • Main level of involvement: Peak or cross-sectoral level

Involvement

As mentioned, Seafarers’ Union of Croatia (which also as members has Croatian on foreign ships) has demanded for months to the responsible Ministry of the Sea, Transport and Infrastructure to proclaim seafarers as key workers during the Covid-19 crisis. Now more than ever, the society depends on the seafarers to maintain the supply lines and communication between the mainland and islands. Seafarers are working intensely together to respond to the Covid-19 crisis.

Views and reactions

The Seafarers’ Union of Croatia is pleased that this issue has been resolved fully aware of the importance of seafarers in the circumstances of the Covid-19 crisis. They also underline that the International Maritime Organization (IMO) and UN have accepted the Resolution in which they demand from the governments to proclaim seafarers as key workers. The Seafarers’ Union of Croatia demanded the same from Croatian government. Seafarers’ Union of Croatia is satisfied that the Republic of Croatia has recognized the importance of such initiative for Croatian seafarers.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      H - Transportation And Storage H50 Water transport
    • Occupation (ISCO level 2)
      Stationary plant and machine operators

Sources

  • 20 January 2021: Informacija za pomorce - glede provedbi odredbi Pomorskog zakonika / ostvarivanje 183 dana za pomorce u međunarodnoj plovidbi (Information for seafareres on required 183 days in international sail) (mmpi.gov.hr)
  • 25 January 2021: Pomorci - ključni radnici i u Republici Hrvatskoj (Seafarers - key workers in Croatia) (sph.hr)

Citation

Eurofound (2021), Seafarers proclaimed key workers and obtain exemption payment of personal income tax, case HR-2021-4/1747 (measures in Croatia), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.