Details of new aid for shortening of working hours and preservation of jobs

COVID-19 | Economic aid measures

Tax news, July 2020

At the session held on 29 June 2020, the Management Board of the Croatian Employment Agency (CEA) has adopted the following:

Aid for shortening of working hours for the period June – December 2020:

  • Target group of employers: employers conducting business and employing 10 or more employees 
  • Target employees include full time employees (include both fixed-term and indefinite term contracts) and do not include owners, co-owners, founders, members of the management board, directors, procurators or similar
  • Applicable to employees employed on 31 May 2020
  • The aid is granted for temporary introduction of full time work in lower than total monthly working hours, but not lower than half of the total monthly working hours – up to HRK 2.000 monthly net per employee
  • Application is starting from 1 July 2020 through CEA's website
  • Related to granted aid, the CEA will make refunds of paid obligatory contributions per data received from the Tax Authorities and JOPPD form 
  • Criteria:
    • Decrease of revenues in a month for which the aid is requested of at least 20% compared to the same month of a previous year – obligatory criterion 
    • Additional fulfillment of one of the following criteria:
      • Decrease of orders in the form of termination or amendments of the agreement with customer/s, written declaration of the customer on decrease of orders in the relevant month 
      • Inability to agree new deals during COVID-19 pandemic
      • Inability to deliver products or agreed and paid raw materials, production materials, machines, tools
      • Inability to make new orders of raw materials, production materials, tools and machines crucial for the business 
  • The aid can be granted to employers which employ:
    • From 10 to 50 employees, if the aid is requested for at least 20% of employees
    • 51 or more employees, if the aid is requested for at least 10% of employees
  • Restrictions relating to payment of dividends, bonuses, granting of stock options and acquisition of own shares 
  • The aid not available for teleworking
  • Specific reporting requirements towards CEA
  • Obligation of employee retention for at least 30 days from the day in which the aid is discontinued - applicable for employees for which the aid is receivedPotpora se ne može ostvariti za radnike koji rade na daljinu

Aid for Preservation of Employment (COVID-19) for July:

  • Target group of employers: employers conducting business and employing up to 10 employees
  • Amount of the aid: HRK 2.000,00 for July per full time employee
  • Criterion: decrease of revenues of at least 50% in June 2020 compared to June 2019
  • Deadline for application: from 7 July to 31 July 2020

We believe it is difficult to constantly monitor amendments and introduction of new aid measures, determine which measures are fitted for your business and fulfill reporting requirements towards CEA. Let us support you on this path, feel free to contact us and arrange a meeting. 

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