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Factsheet for measure HR-2022-4/2764 – measures in Croatia

Green and digital subsidy for self-employment

Potpora za samozapošljavanje - zeleno/digitalno

Country Croatia , applies nationwide
Time period Open ended, started on 21 January 2022
Context Green Transition, Digital Transformation
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery
– Active labour market policies (enhancing employability, training, subsidised job creation, etc.)
Author Predrag Bejakovic (IJF) and Eurofound
Measure added 18 August 2022 (updated 05 September 2022)

Background information

The Croatian Employment Service provides definitions and frameworks for determining business activities that are deemed as green and digital and gives information on various incentives for such jobs. One form of incentives for these activities is the Green and digital subsidy for self-employment.

The subsidy aims to provide funds for self-employment and to allow for the legalisation of existing work or to employ through a business idea for which they assumed had market potential, or they wished to start "privately" doing the job for which they had previous experience, i.e. which they previously performed for an employer.

Content of measure

The subsidy can be awarded to an unemployed person or to a group of unemployed people if they will jointly establish and start operations of a new business entity or continue with the business of the existing business entity that they have taken over.

Target groups are jobless persons registered in the register of unemployed persons maintained by the Croatian Employment Service. Applicants must meet the criteria of a green or digital workplace as defined by the Glossary. The subsidy for self-employment can be assigned to two groups of users.

The first group is eligible up to HRK 150,000 (€19,920). The subsidy is awarded for activities that belong to the following areas classified by NACE:

  • (B) mining and quarrying (sections 05-09);
  • (C) manufacturing industry (sections 10 - 33);
  • (D) supply of electricity, gas, steam and air conditioning (section 35);
  • (E) water supply; wastewater removal and waste management and environmental rehabilitation activities (sections 36-39); and
  • (F) construction (sections: 41-43).

The second group is eligible up to HRK 110,000 (€14,608). It is awarded for registration and future performance of activities that belong to the following areas classified by NACE:

  • (G) Wholesale and retail trade; repair of motor vehicles and motorcycles (all sections except 47.99);
  • (H) Transportation and storage;
  • (I) Activities of providing accommodation and preparing and serving food (only section 56);
  • (J) Information and communications; (M) Professional, scientific and technical activities (all sections except 69.1);
  • (N) Administrative and auxiliary service activities (all sections except 77, 78 and 79);
  • (P) Education;
  • (Q) Health care and social welfare activities;
  • (R) Arts, entertainment and recreation (all divisions except 93.19) and
  • (S) Other service activities (all sections except 94).

The stated amounts represent the maximum possible amount of support that can be granted, while the final amount shall be determined based on the evaluation of the justification of the initial investment accordingly needs expressed in the submitted business plan and cost estimate, which is an integral part of the business plan.

The employer is obliged to spend HRK 20,000.00 (€2,656) from the total amount of support on activities/purchase of equipment that contribute green/digital transition with a detailed explanation in the business plan.

Use of measure

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, 147 persons got the Green and digital financial subsidy for self-employment, of which 47 obtained it in July 2022. It could be expected that the interest for the Subsidy will increase with time.

Target groups

Workers Businesses Citizens
Self-employed
Unemployed
Solo-self-employed
Start-ups

Actors and funding

Actors Funding
National government
Public employment service
European Funds
National funds

Social partners

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:

  • No involvement
  • Main level of involvement: N/A

Involvement

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.

Views and reactions

Social partners in Croatia fully support all measures directed towards the transition to green and/or digital economy.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      B - Mining And Quarrying B5 Mining of coal and lignite
      B6 Extraction of crude petroleum and natural gas
      B7 Mining of metal ores
      B8 Other mining and quarrying
      B9 Mining support service activities
      C - Manufacturing C10 Manufacture of food products
      C11 Manufacture of beverages
      C12 Manufacture of tobacco products
      C13 Manufacture of textiles
      C14 Manufacture of wearing apparel
      C15 Manufacture of leather and related products
      C16 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials
      C17 Manufacture of paper and paper products
      C18 Printing and reproduction of recorded media
      C19 Manufacture of coke and refined petroleum products
      C20 Manufacture of chemicals and chemical products
      C21 Manufacture of basic pharmaceutical products and pharmaceutical preparations
      C22 Manufacture of rubber and plastic products
      C23 Manufacture of other non-metallic mineral products
      C24 Manufacture of basic metals

This case is not occupation-specific.

Sources

  • 21 January 2022: Potpora za samozapošljavanje - zeleno/digitalno (the Green/Digital Financial Subsidy for Self-Employment) (mjere.hr)

Citation

Eurofound (2022), Green and digital subsidy for self-employment, measure HR-2022-4/2764 (measures in Croatia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HR-2022-4_2764.html

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