October the 21st, 2020 – The coronavirus pandemic has caused havoc with the Croatian economy, with many out of work, facing the repayment of debts and foreclosures since the monatorium ceased, and wondering how the pay the bills, the Croatian Government has come out with a new set of Croatian economic measures designed to preserve jobs and help out the enfeebled economy until the end of what has been a truly dreadful 2020.
As Poslovni Dnevnik writes on the 20th of October, 2020, at the beginning of the press conference which was held on Tuesday, Prime Minister Andrej Plenkovic made sure to remind those present of the effects of the Croatian economic measures that government has introduced and taken so far.
“So far, according to the Croatian Employment Service, we’ve paid out 6.85 billion kuna for various measures to preserve jobs, and when contributions are added into that figure, we come to over 10 billion kuna. That’s what we have done so far,” stated the Prime Minister.
He stated that the goal is to simplify the new set of Croatian economic measures and to include a wider circle of those who may use them. The total cost of the new measures should be between 300 and 350 million kuna. The basic goal is to preserve jobs. The measures will be applied from October the 1st, 2020, right up to the end of the year.
The first measure – cutting down on working hours
We’re going down to 70 percent, so far it has been at 50, we’re reducing the amount of documentation. In a week that lasts 5 days, someone can work for a day and a half, and the state will make up for those three and a half days.
The second measure – increasing available aid
Under these new Croatian economic measures, the maximum monthly allowance per worker will now increase from 2,000 to 2,800 kuna per worker.
The grading of support is being introduced in accordance with the rate of decline in turnover – 2000 kuna for a 40 percent drop in turnover. It is also growing due to the drop in traffic. So it will grow to 4000 kuna per worker going for a drop in turnover from 60 percent to more.
The beneficiaries of this measure are entirely exempt from paying any of their contributions.
The decline in turnover will not be measured on a monthly basis, but by looking at the comparison to the decline in turnover in the 2nd and 3rd quarters of this year with the turnover in the 2nd and 3rd quarters of 2019, thus enabling a more realistic picture of the decline in traffic in individual industries.
”We’re leaving an exception for sectors whose work is limited by staff decisions, such as those in food and beverage services. We’re leaving them the choice as to whether it will be looked at and as such done month by month or like this [aforementioned] with quarters,” explained Plenkovic, clearly showing his understanding for those in this less than favourable situation.
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