Thursday, 15 July 2021

When Will Next Croatian Pension Covid Supplement be Paid Out?

July the 15th, 2021 - The Croatian pension Covid supplement was announced several months ago and has been being paid out to Croatian pensioners in varying amounts depending on their monthly income. When will the next payout arrive?

As Poslovni Dnevnik writes, the second payment of the Croatian pension Covid supplement, paid out to mitigate the consequences caused by the ongoing pandemic will begin on Thursday, July the 15th, the Croatian Pension Insurance Institute (HZMO) reported on Tuesday.

In the second round of payouts, the Croatian pension Covid supplement will be paid out to 57,468 pension beneficiaries who, in addition to having a pension earned in the Republic of Croatia, also receive a pension from abroad, as well as Croatian pension beneficiaries who have completed insurance periods abroad but haven't yet exercised their right to a foreign pension.

The second payment also includes beneficiaries whose pension rights have been in progress up until this point, those who were granted the right to a pension on the 31st of March 2021 or earlier. For the second payment, 38,909,600 kuna has been provided, as follows:

- For 7,742 pension beneficiaries whose total pension income is up to 1,500 kuna, 1,200 kuna will be paid out once, and 9,290,400 kuna has been provided for that

- For 9,950 pension beneficiaries whose total pension income is in the amount of 1,500.01 kuna to 2,000 kuna, 900 kuna will be paid out once, and 8,955,000 kuna has been provided for that

- For 23,769 pension beneficiaries whose total pension income in the amount of 2,000.01 kuna to 3,000 kuna, 600 kuna will be paid out once, for which 14,261,400 kuna has been provided

- For 16,007 beneficiaries with a total pension income of 3,000.01 kuna to 4,000 kuna, a one-time payment of 400 kuna will be paid, for which 6,402,800 kuna has been provided

It's worth reminding you that the decision of the Croatian Government on the payment of Croatian pension Covid supplements to mitigate the consequences caused by the pandemic on the 14th of April 2021 regulated the payment of one-time cash benefits provided that their pension doesn't exceed the amount of 4,000 kuna. 

The same goes for beneficiaries who are paid a pension from abroad in addition to the pension earned here in Croatia. They will receive the supplement as long as their total pension income from Croatia and abroad doesn't exceed 4,000 kuna per month.

Beneficiaries who receive part of their pension from abroad for the payment of the Croatian pension Covid supplement were required to submit proof of the amount they receive per month to the Croatian Pension Insurance Institute by the 30th of June 2021. 

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Tuesday, 25 May 2021

Employers Propose Continuation of Government COVID Subsidies

ZAGREB, 25 May, 2021 - The Croatian Employers' Association (HUP) has proposed measures for maintaining liquidity and launching private investments which include retaining jobkeeping measures and covering a portion of fixed costs, ensuring favourable loans and prolonging loan maturity.

In expectation of COVID measures and lockdown of businesses being lifted, HUP addressed Finance Minister Zdravko Marić and underscored that maintaining liquidity is not only relevant during the lockdown period but should be extended for a longer period, and that recovery can only be possible if investments are boosted.

HUP proposes that jobkeeping measures be extended even after busines restrictions are lifted until such time that  all enterprises generate at least 90% of their pre-pandemic revenue in 2019. HUP believes that abolishing support measures for the economy should be gradual, depending on the epidemiological situation, but also on the circumstances in each individual sector so that Croatia is not faced with a wave of bankruptcies and layoffs.

HUP also calls for a portion of fixed costs to continue to be covered, taking account of the percentage revenue has decreased, and for facilitating access to loans for liquidity and working capital, including guarantee schemes for micro, small and medium-sized enterprises.

HUP advocates possibly transforming a portion of loans into grants and for the moratorium on loan maturities to be extended for existing loans, along with state guarantees, at least until the end of this year and longer if need be, based on transparent criteria.

HUP proposes additional support loans for exporters and enterprises investing in the 4.0 industry, and support for investments by large companies through increased support for EU co-funded projects.

It also recommends the possibility of deleveraging debts between companies to prevent a chain reaction, and for non-recoverable loans to be identified faster, as well as speeding up bankruptcy procedures, and introducing additional tax cuts.

"We believe that government subsidies to cover the disrupted economic activities due to the COVID crisis should continue until such time that enterprises can do business normally and save jobs without that support," HUP said.

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Thursday, 15 April 2021

Opposition Accuse Government of Trying to Buy Votes From Pensioners and Young People

ZAGREB, 15 April, 2021 - Parliamentary opposition parties on Thursday criticised the government's plan to pay a COVID supplement to pensioners and a tax refund to young people in the run-up to local elections as vote buying.

Arsen Bauk of the Social Democratic Party (SDP) told reporters in the parliament building that the government "has obviously sorted its priorities to ensure the best possible election result" for the ruling Croatian Democratic Union (HDZ).

"We support a COVID supplement for pensioners, even before elections. I think the Croatian democracy is mature enough and that this will not result in voters voting en masse for the HDZ," Bauk said.

Homeland Movement MP Stjepo Bartulica said that Prime Minister Plenković often expressed his disdain for populists. "I see a great dose of populism in the timing of this measure," he said.

"We are all equal in Croatia, but obviously some groups are more equal than others, especially with elections coming up. In principle, I am not against helping the pensioners, but the way in which the government runs its policies actually increases cynicism in Croatia," Bartulica said.

Bridge's Božo Petrov noted that the government had promised several years ago that the living standards and monthly incomes of pensioners would rise considerably, suggesting that the measures proposed by the government should remain permanent.

Bojan Glavašević of the Green-Left Bloc said that "the pensioners and young people, as vulnerable groups, need systematic rather occasional assistance."

Unlike the opposition, the HDZ's Ivan Ćelić disagreed that this was an attempt at vote buying for local elections. "Let me remind you that a month before elections the (SDP) government of Zoran Milanović gave away electricity vouchers of HRK 200, which can be seen in the same way as the COVID supplement," he said.

(€1 = HRK 7.5)

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