Croatian Government Presents Second Economy Stimulus Package, Minimum Wage to be Raised to EUR 524

The Croatian prime minister, Andrej Plenkovic, has presented new economic measures of the Croatian government aiming to abate the conseuqences of the coronavirus epidemic and announced the proposition for the current measure on the payment of a minim wage of HRK 3,250, already used by 65,000 companies for 400,000 workers, to be increased to net HRK 4,000 per worker (around EUR 524), for March, April and May.

At the same time, the state will take upon itself the payment of contributions for these wages, the novac.hr portal reports. This measure for March, April and May amounts to HRK 8.5 billion (around EUR 1.1 billion), Plenkovic said and noted that the measure could be used under the condition that employers do not lay off workers.

The second measure is meant for companies whose operations are not possible or are significantly hampered and which will be fully or partially exempt from tax paying for April, May and June, which pertains to tax on profit, income and contributions. The third element of the measures pertains to VAT payment, which can be postponed until the invoices are collected, as was the case only for small enterprises until now. The Croatian prime minister also said that the state would only allow necessary expenditures, in an attempt to save as much as possible.

Plenkovic also announced talks with social partners, primarily trade unions, about how to make further savings, considering the current situation. He added that the payment for March, which are to be made in April, are covered for both the pensions and the salaries.

As for the payments in May, which pertain to April, there will be talks in the upcoming period to see how to meet this challenge, Plenkovic said and added that sources of finance were being sought in coordination with the Croatian National Bank. The Croatian prime minister believes that sources of finance will be found so that the state and all its segments can function normally.

Andrej Plenković

Croatian government

aid to economy

coronavirus

minimum wage

raising the minimum wage