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Factsheet for measure HR-2022-8/2980 Updated – measures in Croatia

Financial aid for unemployed persons with disabilities

Novčana pomoć za nezaposlenu osobu s invaliditetom

Country Croatia , applies nationwide
Time period Open ended, started on 17 February 2022
Context Restructuring Support Instruments
Type Legislations or other statutory regulations
Category Income protection beyond short-time work
– Income support for unemployed
Author Predrag Bejakovic (Faculty of Economics, Business, and Tourism (FEBT), University of Split) and Eurofound
Measure added 07 November 2022 (updated 04 December 2024)

Background information

According to Izmjenama i dopunama Zakona o tržištu rada (Amendments to Labour Market Act) (OG 118/18, 32/20, 18/22), unemployed person with disabilities is eligible to Novčana pomoć za nezaposlenu osobu s invaliditetom (Financial aid for unemployed persons with disabilities). The benefit was earlier managed by the Centres for Social Welfare, while now it is an obligation of the Croatian Employment Service.

Content of measure

With previous regulation, it was called Pre-employment supplement (Naknada do zaposlenja) and it was financial aid for unemployed persons with disabilities. It was received by younger persons with severe disability or other severe permanent changes in their health condition, who have finished their education, are able to work and unemployed. The amount of benefit is HRK 350 (€46.5) and could not be obtained simultaneously with the Supplement for constant care.

With the amendments to Labour Market Act, the conditions are almost the same but instead of the Centers for Social Welfare who were previously responsible for the management of the benefit, not it is a duty of the Croatian Employment Service. The right is cancelled on the day of the beneficiary's employment and can be re-acknowledged if the employment ceased without his or her fault and wish.

Conditions for financial aid for an unemployed person with a disability in 2022 (since 17 February 2022 in responsibility of the Croatian Employment Service - CES) are following:

  1. The recipient should be registered in the register of unemployed persons of the CES
  2. They should achieve primary, secondary or tertiary educational attainment
  3. At least 15 years of age
  4. They should have a physical, mental, intellectual or sensory impairment.

Recipients of the financial aid until employment who exercise this right according to the regulations on social welfare retain their recognized right and the same benefit will be paid by the Center for Social Welfare until the Croatian Employment Service issues new administrative decisions to determine whether they meet the conditions for recognizing the right to financial assistance for unemployed persons with disabilities according to the Amendments to the Labour Market Act.

Updates

The following updates to this measure have been made after it came into effect.

19 November 2024

Under amendments to the Labour Market Act and the Social Welfare Act, which entered into force on 17 February 2022, the Croatian Employment Service (CES) became responsible for the payment of financial assistance for unemployed persons with disabilities. In 2023, 8,174 people with disabilities were eligible for financial assistance for unemployed people with disability. The total amount of this expenditure in 2023 was €4,2 million. In January 2024, a new cycle of measures started that the Croatian Employment Service (CES) presented to employers. Through grants and internships, the CES co-finances the cost of the gross salary in a percentage of 40-65%, depending on the employment subsidy, which is used as well as on the target group to which the person being employed belongs. For people with disabilities, employment support is the highest, 65% of the gross salary is financed for 2 years. Particular attention is given to the upskilling and rehabilitation of persons with disabilities, so according to the CES Yearly Report, in 2023, 1,634 persons with disabilities were newly included in the active labour market measures. The number of unemployed persons with disabilities included in the measure ”Education of the Unemployed” increased in 2023 by 62.6%.

27 September 2024

The Act on Inclusive Allowance was passed by the Croatian Parliament on 15 December 2023, it was published in OG 156/23, and it entered into force on 1 January 2024. The said regulation combines four benefits into the right to inclusive allowance - personal disability allowance, assistance and care allowance, and allowance for children realized in an increased amount due to damage to health, severe or profound disability, and financial assistance for unemployed persons with disabilities. After the entry of the Act into force, the Government of the Republic of Croatia at its 277th session, held on 11 January, 2024, adopted the Decision on the basis for calculating the inclusive allowance. This amount is defined as EUR 120. The amount of the inclusive allowance is classified into 5 levels depending on the type, severity, degree of impairment of health or functional abilities, but also age, in such a way that the highest amount of inclusive allowance is provided for the 1st level, and the lowest for the 5th level. In 2024, the inclusive allowance amounts to: a) for the user of the first level EUR 720 or 600% of the base, b) for the user of the second level EUR 480 or 400% of the base; c) EUR 432 or 360% of the base for third-level users; d) for the user of the fourth level, EUR 162 or 135% of the base; and e) for the user of the fifth level, EUR 138 or 115% of the base. It was estimated that more than EUR 506 million would need to be provided for the implementation of the Act on Inclusive Allowance on an annual basis. The aim of the Act is to achieve a fairer distribution of the said benefits and to improve the transparency and efficiency of the rights that are exercised on the basis of disability. Beneficiaries of an inclusive allowance will receive a significantly higher amount of compensation compared to the sum of the individual benefits they previously received (increase from 50% to more than 100%, depending on the level or type and degree of impairment-functional ability). The right to an inclusive allowance in the amount of the first, second and third level of support can be exercised by adults who have been identified as III and IV degrees of disability-impairment of functional abilities in accordance with the Regulation on Expertise Methodologies, and who have the status of a person with a disability in accordance with the Act on the Register of Persons with Disabilities. On the day this Act enters into force, the provisions of Article 1, Paragraph 1 of the Labor Market Act (OG 118/18, 32/20 and 18/22) in the part relating to financial assistance for unemployed persons with disabilities cease to be valid.

Use of measure

According to the information obtained on request by the Ministry of Labour, Pension System, Family and Social Policy in 2022 there were 1,638 beneficiaries of this right.

Target groups

Workers Businesses Citizens
Unemployed
Does not apply to businesses Disabled

Actors and funding

Actors Funding
National government
Public employment service
National funds

Social partners

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

Trade unions Employers' organisations
Role Consulted Consulted
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:

  • Social partners jointly
  • Main level of involvement: Peak or cross-sectoral level

Involvement

The representatives of social partners are members of the Governing Board of the Croatian Employment Service and therefore in that way the participated in the design, implementation and monitoring of the measure.

Views and reactions

The Croatian Employers' Association (CEA) deems that there are too many changes in the legal framework which leads to the dangerous legal instability. However, social partners are fully aware of the importance of an adequate aid to the persons with disabilities but deem that this aid is very modest and should be increased.

Sources

  • 28 January 2022: Amendments to the Labour Market Act (Dopuna Zakona o tržištu rada) (www.zakon.hr)
  • 06 July 2022: Financial aid for unemployed persons with disabilities (Novčana pomoć za nezaposlenu osobu s invaliditetom) (czss-samobor.hr)
  • 27 December 2023: The Act on Inclusive Allowance (Zakon o inkluzivnom dodatku) (narodne-novine.nn.hr)
  • 11 January 2024: Explanation on the inclusive allowance (Objašnjenje o inkluzivnom dodatku) (mrosp.gov.hr)
  • 12 January 2024: The Decision on the basis for calculating the inclusive allowance (Odluku o osnovici za izračun inkluzivnog dodatka) (narodne-novine.nn.hr)
  • 06 May 2024: The Yearly Report by the Croatian Employment Service (Godišnje izvješće Hrvatskog zavoda za zapošljavanje)

Citation

Eurofound (2022), Financial aid for unemployed persons with disabilities, measure HR-2022-8/2980 (measures in Croatia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HR-2022-8_2980.html

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