The Croatian Government has decided to continue with employment retention incentives for June 2020 for industries affected by the Coronavirus (COVID-19). The Croatian Government has amended the May 2020 employment retention incentive criteria for employers with 50 or more employees, regardless of whether they are existing or new users of these incentives.
In the event of continued adverse developments in the economy caused by the epidemic, further employment retention incentives will be adopted on a monthly basis.
EXISTING EMPLOYMENT RETENTION INCENTIVE FOR MAY 2020:
Amount of the grant
Amount of the grant:
Basic eligibility criteria for this incentive
Employment retention incentive can be used by employers who meet the following criteria:
New applicants at time of application for May 2020 employment retention incentive / existing users prior to the payment of employment retention incentive for May must prove that in May 2020 they had a revenue decrease of at least 20% compared to May 2019 (or February 2020 if active less than 12 months) based on submitted VAT forms.
Employers who had a decrease in the number of employees in the period from March 20th, 2020 until the date of incentive payment will lose the right to employment retention incentive if the percentage of employment decline is greater than:
Note: the above is not applicable to regular expiry of employment contracts, retirement and dismissal caused by employees conduct.
Target group of employees
Amended restrictions and grant repayment
Employer who applied for employment retention incentive for May 2020 for 50 or more employees will be obliged to repay the grant if in the period from the grant receipt until 31 December 2021:
NEW EMPLOYMENT RETENTION INCENTIVE FOR JUNE 2020:
Eligibility criteria for this incentive
Who has to repay the grant?
Employer who applied for employment retention incentive for June 2020 for 50 or more employees will be obliged to repay the grant if in the period from the grant receipt until 31 December 2021:
For all employers whose business activities are non-eligible for employment retention incentive for June 2020 due to sectoral limitations, the Government is considering introduction of an additional incentive, i.e. grant for financing part-time employee work. The related decision should be brought during June 2020. The purpose of this Government grant is to retain the employment by financing part of the salary for working days on which employees work part-time or do not work at all.