The Government of the Republic of Croatia has introduced a new measure to support the preservation of jobs.
New measure of support for the reduction of working hours is introduced in view of the current state of the economy, as a result of which the HZZ continues to focus its activities on preserving jobs in the most vulnerable activities / sectors, and helping employers who because of special circumstances due to coronavirus (COVID – 19 ) had a temporary reduction in the scope of work. The support will be available to employers who perform economic activity and employ 10 or more full-time employees (fixed or indefinite contract). Employers can ask for support for their workers, but they cannot ask it for themselves. This means that owners, co-owners, founders, board members, directors, procurators, etc. cannot apply for support for themselves. The support is awarded for full-time employees lasting less than the monthly fund of hours, but not less than half of the monthly fund of hours, in the amount of up to HRK 2,000 per month net, per employee. The employer is obliged to calculate and pay contributions from and to the amount of support paid to the employee. According to the approved support, the HZZ will also return the calculated and paid contributions from and to the base salary based on the data of the Tax Office from the JOPPD form. Salary calculation will be reported according to the new codes in the JOPPD form.
The basic criteria when applying for support is the expected decline in the total monthly working hours of all employees employed by the employer on a full-time basis in the month for which support is requested by at least 10%.
In addition to the basic criteria, the employer must prove the connection between the impact of the COVID-19 epidemic on business and the expected decline in the total monthly working hour’s fund.
This connection is proven by the realized decrease in turnover / receipts in the month for which support is requested of at least 20% compared to the same month last year and one of the following reasons:
- drop in orders through termination or amendment of the contract with the customer / customers, written statement of customers on the drop in orders for the month for which support is requested;
- the inability to contract new jobs during the COVID-19 epidemic;
- inability to deliver finished products or contracted and paid raw materials, raw materials, machinery, tools;
- Impossibility of new orders of raw materials, tools and machines necessary for work. Exceptionally, employers operating in the manufacturing sector (group C according to the NKD) can receive support even if the drop in turnover in the observed period is less than 20%, but they must prove one of the above reasons.
Submission of applications for the use of aid for the reduction of working hours will be provided from 1 July 2020.