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-2022-40/2829 – measures in Croatia
|Country||Croatia , applies nationwide|
|Time period||Open ended, started on 30 September 2022|
|Context||COVID-19, War in Ukraine|
|Type||Legislations or other statutory regulations|
Promoting the economic, labour market and social recovery
– Responses to inflation
|Author||Predrag Bejakovic (IJF) and Eurofound|
|Measure added||10 September 2022 (updated 10 October 2022)|
In order to mitigate the consequences of rising energy prices due to the war in Ukraine, it is proposed to pay out a one-time monetary income for the beneficiaries of the child allowance. Also, it is proposed to pay a one-time payment income to beneficiaries whose procedures for realizing the right to child allowance are in progress, and whose right to payment of the child allowance is recognized by 30 September 2022. The similar form of pecuniary aid is intended for some other vulnerable groups in Croatia. Among others these are pensioners with a small amount of pension, jobless persons which are eligible to the unemployment benefits. Furthermore, it is proposed to pay a one-time monetary income as social assistance families that are exposed to economic instability and the risk of poverty, especially in conditions of rising inflation.
Parents who receive child benefits will receive a one-off payment of €40 for one child, €67 for two children, €93 for three children, €120 for four children and €145 for five children. Pensioners with a monthly pension of up to €247 will receive a one-off payment of €160, those with a pension of between €247 and €313 will get €120, those with a pension of between €313 and €447 will receive €80 and those with a pension between €447 and €581 will be paid a one-off amount of €53. The total cost of this scheme is estimated at €60 million. Unemployed persons registered with the Croatian Employment Service on 1 September 2022 will be paid €33 for October, November and December 2022. Vulnerable energy consumers and foster parents will see their state subsidy increase from €53 to €67. Non-taxable income for students will be increased from €2,000 to €3,200 for income earned in 2022. The government also prepared a €13.3 million aid package for farmers, and the same amount was also earmarked for fishermen. Transport operators will receive a subsidy per liter of diesel fuel.
Regarding the use of the measure, in the fiscal system, the most important are the increases in the amount of non-taxable salary bonuses from €400 to €667 per year, and in non-taxable rewards for work performance from €664 to €1,000. Non-taxable lump-sum amounts to cover workers’ food expenses are increased from €664 to €800 annually, and non-taxable pension severance pay is increased from €1,066 to €1,330. According to the official data some 130,000 parents in Croatia receive child benefits. According by the Croatian Institute for Pension Insurance, of all 953 thousand persons which achieve pension according to the Pension Insurance Act, almost 80% of them are eligible to the mentioned supplement for pensioners, of which around one quarter will obtain the biggest supplement amount. According to the data by the Croatian Employment Service (CES), in August 2022, there are registered 110,420 unemployed persons in Croatia.
|Does not apply to workers||Does not apply to businesses||Applies to all citizens|
Public employment service
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||No involvement as case not in social partner domain||No involvement as case not in social partner domain|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Due to the nature of the measures related to subsidies and fiscal bonuses, social partners were not included.
The Croatian Employers' Association welcomes the announced increase in tax-free receipts as the first step in the necessary relief of wages in order to increase the competitiveness of Croatian employers. Trade unions deem that the measure respects the principle of fairness and are well targeted to the most vulnerable.
Eurofound (2022), Subsidies and fiscal bonuses for rising energy prices and inflation , measure HR-2022-40/2829 (measures in Croatia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HR-2022-40_2829.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.