September 14, 2022 - The Minister of Labour, Pension System, Family and Social Policy, Marin Piletić, was a guest on Croatian Radio's show "A Sada Vlada”, where he discussed the government measures of help for the upcoming winter, as well as the changes to the Labour Act.
As Poslovni writes, he commented on the Government's package of measures to help businesses and citizens.
“Part of the package encompasses measures from our department, but the largest part is concerned with HEP, where the government has enabled many to pay a price that is not market but artificially created. A good number of entrepreneurs pay the price for electricity that households do. Also, all social care institutions from the category of entrepreneurship will pay for electricity like households, Minister Piletić said.
He pointed out that there is no category that they did not include, from farmers, fishermen, students, beneficiaries of child benefits, pensioners...
“When it comes to pensioners, the Government has intervened for the third time in just a year and a half with a one-time cash supplement for those with lower monthly incomes. Not only did we raise the grade level, but we also increased the pension threshold that can receive a one-time supplement. Also, one of our goals was to raise the lowest pensions by three percent from January 1, 2025. By intervening in the final bill, we made it so that the percentage increase of the lowest pensions does not wait for 2025, but starts on January 1, 2023, he said.
Measures for the unemployed
He added that they included the unemployed for the first time.
“Those who were on the labour exchange before September 1 will receive a quarterly cash supplement of HRK 250 in the next three months. It has been shown that the government intervenes at the right time, that the package is strong and comprehensive, and most of all fair. We must protect all categories of citizens, especially those with lower incomes”, he emphasized.
When asked if he expects an increase in the number of unemployed since the tourist season is coming to an end, Minister Piletić said that the number of unemployed increases slightly after each tourist season, but that they do not expect the number to grow alarmingly.
“We are at record low unemployment rates. The number is around 110,000 registered. This is significantly less than at the beginning of this government's mandate”, he said.
He also referred to the amendments to the Labour Act.
“The percentage of workers who work on a fixed-term contract is decreasing from year to year, which we are satisfied with, we have reached a kind of European average, but we still have a large number of short-term contracts. That is why we are introducing the novelty of limiting fixed-term contracts to a maximum of three years and a maximum of three contracts”.
“He pointed out that one of the key innovations is platform work”, i.e. work from home.
“The employer can come to the employee's home and see what kind of conditions he is working in, with prior notice and the worker's consent”.
“There was a proposal that there be no notice period or severance pay for workers over the age of 65 and 15 years of service unless the worker and the employer agree otherwise. Here we wanted to encourage employers that after reaching the age of 65 if the worker wants to stay working and meets all the conditions for a pension, that the employer is not obligated to pay severance pay. Someone who fulfils the conditions for a pension will not be neglected, but will receive a pension and then the employer is not obliged to pay severance pay. This way, we stimulate both the employer and the employee, so that if they wish, they can stay longer in the world of work, but we have left it up to the employer and the employee to agree”.
Increasing wages in the public sector
Minister Piletić said that the negotiations have not started yet, and that at the next government session, he will appoint negotiating committees on behalf of the government, for both state and public servants and employees.
“We want to react and increase the salary base in both state and public services, following the situation of economic growth and filling the budget. Considering the autumn package, there is a lot of pressure on the budget, but I believe that in negotiations and dialogue we will find the best solution that would show that we want to increase the base”, Piletić pointed out.
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