As Poslovni Dnevnik writes, irritated employers have rightly pointed out that the income threshold after which the right to tax relief is lost for students is much too low, and that raising it would encourage students to not only seek out employment, but to be willing to work more. Therefore, they’ve suggested that the threshold be raised to 30,000 kuna, with different treatment if the taxpayer (their parent) has more children. This could solve the problems faced by the Croatian labour market, particularly when it comes to seasonal and tourism employment.
According to tportal, this initiative from the Croatian Employers’ Association (HUP) is also being strongly supported by the president of the Croatian Tourism Association, Veljko Ostojic, who very formly believes that the greater engagement of students in seasonal jobs in the tourism sector would reduce the need for the import of foreign labour, and the administrative issues and ridiculous waiting times for work permits that come with that.
”We’ve proposed to the Government that the non-taxable income limit for dependent members be raised to 30,000 kuna. We believe that in this way, a significant number of people would be activated on the Croatian labour market,” Ostojic said.
Student work is otherwise regulated by the Student Affairs Act, and the current law on that has been in force since November 2018.
Students are employed through authorised intermediaries, which can be student centres or higher education institutions that have a centre for student standards, provided that they have received approval from the Ministry of Science and Higher Education to conduct mediation activities. The law also regulates the minimum hourly wage, which is calculated by dividing the amount of the minimum gross salary by 160. The hourly wage is adjusted once a year, and for 2022 it amounts to 29.30 kuna.
Altering this and increasing the amount students are free to earn without facing issues from the tax man would not only put a gradual stop to importing non-resident staff, but put the Croatian labour market in a far better position when it comes to the height of the summer season, when good staff are increasingly difficult to come by for would-be employers.
For more, check out our dedicated business section.
