New measures will amount to HRK 300 – 350m and will be applied until year end.
The Prime Minister of the Republic of Croatia, Andrej Plenković, presented yesterday the continuation of measures to preserve jobs due to the crisis caused by the Covid-19 pandemic. He noted that According to the Croatian Employment Service (HZZ), HRK 6.85bn, has been paid so far for various measures to preserve jobs. When including written-off contributions, that figure exceeds HRK 10bn.
The first measure concerns the shortening of working hours. So far, it has referred to the reduction of working hours by 50%, while now it is being reduced to 70% and the maximum monthly support per worker is increasing from the current HRK 2,000 to HRK 2,800. According to this measure, as an example, someone can work for a day and a half, and the other three and a half days will be compensated by the state in the amount of up to HRK 2,800, while they will also be exempted from paying contributions to that amount.
The second measure regards support for each employee of the company that will continue further. Now the Government is introducing a progressive support in accordance with the drop in sales as follows:
- a subsidy of HRK 2,000 per worker will be given for a drop in turnover of at least 40%.
- HRK 2,500 will be given for a drop in turnover of 45-50%
- HRK 3,000 for a drop in turnover of 50-55%
- HRK 3,500 for a drop in turnover of 55-60%
- HRK 4,000 for a drop in turnover exceeding 60%
Additionally, the Prime Minister pointed out that the measure was adjusted in a way that would enable greater coverage of entities, which means that the decline in turnover will no longer be measured on a monthly basis, but will compare the decline in turnover YoY on a quarterly basis.
The new measures should be in place until the end of 2020, while the estimated amount of the mentioned measures should amount to between HRK 300 and 350m.
