Croatian Government Subsidies Aid Companies for Shorter Working Week

Lauren Simmonds

As Poslovni Dnevnik writes on the 8th of September, 2020, so far, 534 companies registered in Croatia with a total of 24,192 employees have applied for Croatian Government subsidies to cover their employees as they make the increasingly popular decision to shorten their working week.

Croatian Government subsidies will ensure the payment of all of them up with up to 2,000 kuna per employee, and the measure will be applied by the end of the year. Companies and enterprises from particularly vulnerable industries who have experienced a pandemic-induced drop in their income of more than 60 percent when compared to last year will be able to count on 4,000 kuna in state aid for their employee salaries by the end of this year, Prime Minister Andrej Plenkovic announced last week.

The move was formally adopted on Monday at a session of the Administrative Council of the Employment Service, according to a report from Vecernji list.

The extension of Croatian Government subsidies in the full amount of 4,000 kuna especially applies to companies operating in the sectors of passenger transport, catering/hospitality, tour operators and enterprises related to recreation, culture, business and sport events, as well as enterprises and activities that won’t be able to operate due to possible decisions of the National Civil Protection Headquarters in regard to work bans.

The Croatian Government subsidies also include a write-off of all related contributions. It is estimated that the extension of these state grants will cover approximately 70,000 employees in total, for which the state will additionally provide around 800 million kuna. In total, support for employment could reach ten billion kuna this year, most of it having been financed from the state budget, but the government has made sure to assure that part of the funds will be compensated from various European Union sources.

”I see the extension of these measures as a purchase of time over the next few months, to see what’s going to happen and think about where it is wisest to invest. If this situation continues, there will be a greater need to invest in people and new technologies,” stated Danijel Nestic, an analyst from the Zagreb Institute of Economics.

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