New Round of Croatian Economic Measures Offers Further Relief

Lauren Simmonds

December the 7th, 2020 – The latest anti-epidemic restrictions introduced by the National Civil Protection Headquarters have dealt another unwelcome blow to the economy, with certain sectors being hit harder than others. The government has, as such, made some alterations to this new round of Croatian economic measures.

As Poslovni Dnevnik/Marija Brnic writes, Croatian enterprises who use the measures to preserve jobs within their companies during this difficult economic period will be able to apply for new criteria as of this Friday. The new options are in line with last week’s decision taken by the Croatian Government to expand the coverage available for those in catering and hospitality, gyms and more who have had to put the keys in the lock until the 21st of this month as a result of the National Civil Protection Headquarters’ decision.

The Governing Board of the Croatian Employment Service (CES) has approved that this measure can be used by all those affected by the decision recently taken by the Headquarters, as can the publishers of books and occasional publications, and the novelty is that this new payment which covers up to four thousand kuna net in wage payments will provide an increase in allowances for directors and procurators in companies with less than ten employees.

The CES is leaving the possibility open for the assessment of which conditions are more favourable for employers who have already submitted their applications for support for the month of November. Employers whose application for November was rejected before this correction of the criteria also have the right to submit a new application or supplement their previous application in accordance with these new provisions.

The biggest novelty in this round of Croatian economic measures is the covering of part of or indeed all of the fixed costs of employers which have been hit by the latest decision made by the Headquarters. The ins and outs are still being determined by the Ministry of Finance, so details on what will be possible to be reimbursed by the state and in what percentage it will all be charged will be known in the days to come.

Last week, Finance Minister Zdravko Maric announced that the refund would cover the lease of business premises, electricity, water, gas and heating bills, fees for HRT and ZAMP and possibly even more than that.

As announced after the session of the Management Board, the CES will formally make these payments as it has done in the past, but the cost declarations will be submitted and approved by the Tax Administration of the Ministry of Finance. The competent ministry will publish all instructions to employers who are interested in the new round of Croatian economic measures on its website.

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