A closer look at the data reflects the greatest outflow of inhabitants are between the ages of 20-59, drawn to other European countries with richer labor markets and higher wages. This decline is exacerbated by lower birth rates and an aging population. Croatian women now have fewer children, with a birth rate of 1.44 children per woman, well below the 2.1 needed to grow the country’s population. Simultaneously, Croatia has also experienced a 13.6% increase in inhabitants aged 60 and up over the last decade.
To counter these effects, cities across Croatia have implemented a range of social and economic measures to entice citizens, particularly the younger generation, to stay and thrive. We take a look at a handful of cities across Croatia and the benefits they offer.
Zagreb
Over a quarter of Croatians live and work in Zagreb. Since 2009, the City of Zagreb has introduced a series of measures to make the city more attractive for its inhabitants. According to their model (“zagrebački model pronatalitetne politike”), parents receive financial support for newborns amounting to 3,500 kuna for every child. From the third child onwards, an additional monthly bonus is paid until the child turns 6 years old, amounting to a total of 54,000 kuna.
After-school care is subsidized and scholarships are awarded for gifted students and those of lower socio-economic backgrounds. All students up to a secondary school level are also provided free transportation and textbooks. The city is also looking to further extend these measures to include tax breaks for teachers and scholarships holders. Together, they cost the city approximately 1.072 billion kuna annually.
Rijeka
According to recent headlines, the City of Rijeka is increasing efforts to boost its population. Karla Mušković, the head of the city Department of Health and Social Welfare, said the City is doubling financial support to new parents by awarding them 3,000 kuna for the first child, 4,000 kuna for the second and, for the third child onwards, 6,000 kuna.
An additional 2,000 kuna in vouchers will be awarded to low-income families, single parents, as well as parents suffering from disabilities from the Homeland War. Students and children of veterans missing, detained or perished will also receive a one-off payment of 1,000 kunas in financial aid. The city has also set aside 12 million kunas in this year’s budget to subsidize rising electricity costs for the vulnerable. The total cost for these extended measures is 22 million kuna.
While generous, how do these measures stack up with smaller cities across Croatia?
Vis
Surprisingly, Vis offers one of the most generous policies in Croatia. As of 2016, Vis provides a bonus of 10,000 kuna for the first 2 children. From the third child onwards, parents are given a hefty 146,000 kuna. This is broken down to an upfront sum of 20,000 kuna, with a monthly annuity of 1,200 kuna until the child reaches 10 years old.
Novi Vinodolski
First-time parents are given a sum of 10,000 kuna per child. Additionally, the city also plans for additional subsidies to young families for repayment of housing loans, given the inflation of housing prices due to tourism.
Crikvenica
For Crikvenica, parents with 3 or more children receive 30,000 kuna per child. Mayor Damir Rukavina’s government also enacted a series of measures to combat rising housing costs. In 2007 and 2019, building restrictions were passed to limit construction zones and building plot sizes within the city.
Vukovar
The City of Vukovar rewards 1,000 kuna for the first child, 2,000 kuna for the second child, and 5,000 kuna for the third and each subsequent child. On top of this, Vukovar also co-finances housing costs for families with three or more children, subsidizing bills for water, electricity, heating and waste collection.
Imotski
In 2019, the City of Imotski increased the financial aid for newborns ten-fold. As of 2019, parents will now receive 10,000 kuna for the first child, 20,000 kuna for the second, and 50,000 kuna for the third and subsequent child. These measures make up almost 1.25 million kuna in the annual budget.
While government measures are certainly helpful to alleviate this situation, private businesses can also play a significant role. For example, DM has rolled out significant incentives to ensure their employees thrive in the workplace. In 2019, they increased the bonus given to new parents from 3,000 kuna per child, to 10,000 kuna, while new parents are encouraged to make use of their flexible shift system to ensure proper work-life balance.
For more, check out our dedicated lifestyle section.
