Employment retention incentive for the period from September to December 2020

In an effort to retain employment within industries affected by the Coronavirus epidemic (COVID-19) the duration of incentives for employment retention by the Croatian Employment Bureau has been extended from September to December 2020.

Below is an overview of conditions for application of these incentives:

1. Employment retention incentive for specific business sectors and employers whose business activities are suspended or limited

Amount of the incentive	Sectoral employers (i.e. employers performing business activities in specific sectors)	Employers whose business activities are suspended or limited in accordance with the Decisions of the Civil Protection Board (regardless of sector/ business activity)
	HRK 4,000 per full-time employee or pro rata amount per part-time employee. up to HRK 250 per employee for pension insurance contributions for second pillar (MIO II).	Business activities are suspended/ limited for more than 14 days: HRK 4,000 per full-time employee or pro rata amount per part-time employee. up to HRK 250 per employee for pension insurance contributions for second pillar (MIO II).	Business activities are suspended/ limited up to 14 days: HRK 2,000 per full-time employee or pro rata amount per part-time employee. up to HRK 125 per employee for pension insurance contributions for second pillar (MIO II).
Basic eligibility criteria for the incentive	A) For sectoral employers Business activities in the following sectors: Transport and storage, Services incidental to air transport, Providing accommodation, preparation and serving food and beverages, Rent and lease of cars, light motor vehicles, water and air transport vehicles, travel agencies, tour operators and other reservation services as well as related activities, Arts, entertainment and recreation, Organization of cultural, business and sports events, fairs and weddings as well as related ancillary service activities, Translation activities and interpreter services, Washing and dry cleaning of textiles and fur products. Revenue drop (based on VAT forms or financial projections) of at least 60% in the month preceding the month for which incentive is requested compared to the same month previous year (or February 2020, if active less than one year).
	B) For employers whose business activities are suspended (regardless of sector/ business activity) Business activities are suspended in accordance with the Decisions of the Civil Protection Board. Do not need to prove revenue drop.
	C) For employers whose business activities are limited (regardless of sector/ business activity) Business activities are limited in accordance with the Decisions of the Civil Protection Board. Revenue drop (based on VAT forms or financial projections) of at least 60% in the month preceding the month for which incentive is requested compared to the same month previous year (or February 2020 if active less than one year).
Target group of employees	Employees: With limited and permanent employment, Citizens of Croatia, EU or third countries, Employed full-time or part-time, That have one of the following status: assigned employee, single parent, Croatian war veteran, etc., Employees of the branch offices of foreign companies. EXCLUDING: Employees employed after 31 August 2020, Co-owners with more than 25% share, founders, board members, directors, procurators, etc. (except in the case of employers with up to 10 employees, craft owners, regardless of the number of employees), Pensioners, Foreign employees whose work permit and residence expired.
Who has to repay the incentive?	Employers who received incentives for 50 or more employees will be obliged to repay incentives if in the period from the incentive receipt until 31 December 2021: Pays dividends or profit share or other equivalent receipt that is considered as distribution of profits realised in any tax period, Provides stock options or own stocks or shares to members of the management board, executive directors, procurators, etc., Pays bonuses and rewards for work results above the non-taxable amount (HRK 5,000) and other similar receipts to members of the management board, executive directors, procurators, etc., Acquires own stocks or own shares.
Application deadline	Incentive for September: from 15 September until 15 October 2020 Incentive for October: from 16 October until 15 November 2020 Incentive for November: from 16 November until 15 December 2020 Incentive for December: from 16 December until 15 January 2021

2. Employment retention incentive for microentrepreneurs

Amount of the incentive	Amount of the incentive: HRK 2,000 per full-time employee or pro rata amount per part-time employee. up to HRK 125 per employee for pension insurance contributions for second pillar (MIO II).
Basic eligibility criteria for the incentive	Incentive can be used by employers who meet the following criteria: Employ 9 or less employees. Revenue drop (based on VAT forms or financial projections) of at least 50% in the month preceding the month of for which incentive is requested compared to the same month previous year (or February 2020 if active less than one year). Employers whose regular business activities are suspended in accordance with the Decisions of the Civil Protection Board do not need to prove revenue drop.
Target group of employees	Employees: With limited and permanent employment, Citizens of Croatia, EU or third countries, Employed full-time or part-time, That have some of the following status: assigned employee, single parent, Croatian war veteran, etc., Employees of the branch offices of foreign companies. EXCLUDING: Employees employed after 31 August 2020, Pensioners, Foreign employees whose work permit and residence expired.
Application deadline	Incentive for September: from 15 September until 15 October 2020 Incentive for October: from 16 October until 15 November 2020 Incentive for November: from 16 November until 15 December 2020 Incentive for December: from 16 December until 15 January 2021