covid19

Employment retention incentive – Covid-19

26.3.2020.
covid19

In order to encourage job retention in the sectors affected by the COVID-19 virus epidemic (SARS CoV-2) in Croatia, a measure of incentive for undertakings in activities affected by the Coronavirus (COVID-19) of the Croatian Employment Bureau has been adopted. The conditions for the incentive are that the employer carries out economic activity in the affected sector and that he has a reduced volume of business activities due to the COVID-19 crisis. The incentive can be realized up to a maximum of HRK 3,250 per employee.

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

    Who can use this incentive?

  Employers who perform the following activities:

  • providing accommodation and preparing and serving food and drink;
  • transportation and storage;
  • health tourism;
  • labour-intensive activities within the manufacturing industry - textiles, clothing, footwear, leather, wood and furniture
  • employers who are unable to perform their activities in accordance with the decisions of the Civil Protection Staff;
    as well as other employers who can prove the impact of special circumstances.
  What is the amount of the grant? 

  Grant amount:

  • HRK 3,250.00 per month for a full-time employee;
  • up to HRK 1,625.00 per month for a part-time employee;
  • Pro rata of the amount per employee for time they did not work under the decision of the Civil Protection Staff.
 

How to apply?

  In the incentive request the employer should:

  • describe the reason and provide evidence of business difficulties;
  • provide an explanation of the decline in revenue - a tabular comparison of revenue by the end of the month in which the claim was filed with the same month of the previous year, with a projection of revenue in the coming period for three months, comparing the same period of the previous year.

The drop in revenue must be greater than 20% 

Who is not eligible for this incentive?

Employers who are not eligible to use this incentive:

  • Employers who have registered a business entity in the last 12 months and who use self-employment grants;
  • Employers who have experienced a decrease in the number of employees in the period from March 20th, 2020 until the date of submission of the incentive application if the percentage of employment decline is greater than:
    • 40% with employers employing up to 10 employees
    • 20% for small employers
    • 15% for medium-sized employers
    • 10% large employers
   When can the employer apply? Employers can apply to the Croatian Employment Bureau for this grant from March 23rd, 2020.
How long will this incentive be available? The incentive will be available from March 1st, 2020, and the duration will be maximum 3 months.