employment retention

Incentive for employment retention in activities affected by the coronavirus

6/30/2020
employment retention

In order to encourage job retention in the sectors affected by the coronavirus (COVID-19) epidemic in Croatia, the Incentive for employment retention in activities affected by the coronavirus (COVID-19) of the Croatian Employment Bureau has been adopted for July 2020.

Employers who employ up to 10 employees and have a revenue drop of minimum 50% in June 2020 in comparison to June 2019 can apply, and the incentive can be granted in the amount up to HRK 2,000 per employee.

Below we present an overview of the necessary conditions for the implementation of this incentive:

Who can use this incentive?  Employers who perform economic activity and employ up to 10 employees, regardless of their business activities. 
What is the amount of the incentive?

Incentive amount:

  • HRK 2,000.00 per a full-time employee
  • pro rata amount per a part-time employee.
How to apply?

The employers need to prove a revenue drop in June 2020 in comparison to June 2019 of at least 50%:

  • employers registered for VAT prove the revenue drop through submitting the VAT forms for June 2020 and June 2019
  • employers who are not registered for VAT prove the revenue drop based on the revenue drop spread sheet (in the form provided by the Employment Bureau).
 Who is not eligible for this incentive?

Employers who are not eligible to use this incentive:

  • employers who did not pay salaries in the previous months
  • renters of private accommodation
  • family farms that are not in the system of profit or income tax.
 When can the employer apply? Employers can apply to the Croatian Employment Bureau for this incentive from July 7th, to July 31st, 2020.