Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure HR-2022-11/2766 – Updated – measures in Croatia
Country | Croatia , applies nationwide |
Time period | Open ended, started on 07 March 2022 |
Context | Green Transition, Digital Transformation |
Type | Legislations or other statutory regulations |
Category |
Promoting the economic, labour market and social recovery into a green future
– Active labour market policies (enhancing employability, training, subsidised job creation, etc.) |
Author | Predrag Bejakovic (IJF) |
Measure added | 21 August 2022 (updated 20 January 2025) |
Subsidized employment can be a form of equalization of opportunities for employment of vulnerable groups so that they become more attractive to employers, although they are at a disadvantageous position in the labor market. It is hoped that the productivity of such workers will increase with time so that their jobs when subsidies stop, but there is no a guarantee. If the job is permanently linked to lower productivity, it usually turns off when stimulus stops. They have been applied in Croatia for a longer time, but since 7 March 2022 they are also used for green and digital jobs.
The goal of the measure is to train unemployed persons for independent work by encouraging their employment through co-financing employers’ expenses in the amount of gross wages and other costs. Eligible for the green and digital training subsidies are unemployed persons registered at the Croatian Employment Service (CES) who are employed for the first time in the profession for which they were educated. Traineeship lasts, as a rule, no longer than one year, if the special law does not stipulate otherwise, in order to obtain the conditions for passing the training exam in that profession. If the law stipulates otherwise, the training cannot be co-financed for a longer period than 24 months. The CES awards a monthly flat-rate subsidy of HRH 3,430 (€456) for persons with secondary education and HRK 4.290 (€570) for persons with tertiary education.
The following updates to this measure have been made after it came into effect.
24 November 2024 |
Green and digital traineeship subsidies can be granted to employers who, as natural or legal persons, or persons established under special regulations, independently and permanently carry out economic activities. The measure aims to train people for independent work by encouraging the employment of people by co-financing the cost of their gross salary and other costs incurred by employers as prescribed by this measure. Target groups are unemployed people registered in the unemployment register maintained by the Croatian Employment Service (CES), regardless of their insured years, and who are employed for the first time to perform work in the occupation for which they were educated. Training of trainees (internship) usually lasts a maximum of one year, unless otherwise provided for by a special law to fulfill the requirements for taking the (intern) exam in that profession or trade, but in any case, this measure cannot co-finance a trainee for a period longer than 24 months. The CES awards a monthly flat-rate green and digital traineeship subsidy of €560 for persons with secondary education and €700 for persons with tertiary education eligible for tax deductions. For those who are not eligible for tax deductions, the mentioned amounts are €650 and €810, respectively. |
01 January 2023 |
As Croatia has entered in Eurozone since the beginning of 2023, the information on the available subsidies and conditions for their use are presented in Euro. The amount of traineeship subsidies for green and digital jobs has been slightly increased. The CES awards a monthly flat-rate subsidy of €490 for persons with secondary education and €615 for persons with tertiary education. All other conditions are mostly the same as earlier. |
According to the Statistical Bulletin No. 7 (Mjesecni statisticki bilten) by the Croatian Employment Service (Table 25, page 52) in the first seven months of 2022, 41 persons got the Green and digital traineeship subsidies, of which 13 obtained it in July 2022. It could be expected that the interest for the Subsidy will increase with time.
Workers | Businesses | Citizens |
---|---|---|
Unemployed
|
Applies to all businesses |
Other groups of citizens
|
Actors | Funding |
---|---|
National government
Public employment service |
National funds
|
Social partners' role in designing the measure and form of involvement:
Trade unions | Employers' organisations | |
---|---|---|
Role | No involvement | No involvement |
Form | Not applicable | Not applicable |
Social partners' role in the implementation, monitoring and assessment phase:
Although social partners were not directly included in the design of the measure, indirectly they participated because representatives of social partners are members of the Croatian Employment Service Governing Board which concludes on the characteristics of the active labor market measures.
Social partners in Croatia fully support all measures directed towards the transition to green and/or digital economy as well as successful inclusion of vulnerable groups into the labor market.
Citation
Eurofound (2022), Green and digital traineeship subsidies, measure HR-2022-11/2766 (measures in Croatia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HR-2022-11_2766.html
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