Thursday, 26 January 2023

Croatian Pension and Wage Growth Now More Necessary Than Ever

January the 26th, 2023 - Alright, this title is slightly misleading because we've needed Croatian pension and wage growth for a very long time now, but after becoming a full Eurozone member state, it's high time that we saw the numbers in our bank accounts go up, even just a little bit.

As Poslovni Dnevnik writes, recently, there have been signs of inflation finally stabilising after a certain drop in electricity and gas prices was duly noted, but despite that, in general prices are still high, and Croatian living standards are falling, which is why Croatian pension and wage increases are now more necessary than ever.

These are just some of the conclusions reached as part of the recently held "Eurostands - Perspectives and challenges" in the City of Zagreb. The head of the Independent Croatian Trade Unions, Kresimir Sever, reiterated that subjective inflation is still being very much felt by most of the country's households and is significantly higher than official statistics. He said because of that, Croatian pension and wage growth is necessary. On the other hand, the chief economist of the Croatian Association of Employers (HUP), Hrvoje Stojic, said that HUP members have seen their employee salaries rase above the national inflation level.

Stojic also noted that the wider Eurozone's economy will experience a certain strong slowdown throughout 2023, during which there will be a "cooling" of aggregate demand, but he added that inflation could be up to two percentage points lower compared to the estimates provided back at the end of 2022.

He believes that due to the unusually mild winter we've all been experiencing, the whole of Europe could avoid dipping into the expected recession in 2023, but also that there is an option to simply "postpone" it to the second half of this year, or even until next year. Professor Marijana Ivanov of the Faculty of Economics warned that inflation reduces the real value of everything we own, and that we need to keep paying attention to the trends.

However, it is positive that there are still no risks of unemployment growth in the Croatian economy, but the general standard of living in slipping.

''Croatian living standards are decreasing, but somehow we're managing despite all of the current challenges," she concluded.

For more, make sure to check out our dedicated news section.

Monday, 9 May 2022

What Will Average Croatian Wage and Pension be in Eurozone?

May the 9th, 2022 - With Eurozone entry rapidly approaching and due at the very beginning of next year, just what will the average Croatian wage and pension be? It seems an increase is on the cards.

As Poslovni Dnevnik writes, when Croatia introduces the euro at the beginning of 2023, the average Croatian wage (net salary) will stand at around 900 euros, and an average pension will stand at around 320 euros, considering the fact that due to ongoing inflation, personal incomes and pensions across Croatia could increase slightly before the changeover from the kuna to the euro anyway.

If we take in some information and consider it relevant data on the average net salary across the EU back in 2021, which amounted to 1916 euros per month, it means that the average Croatian salary needs to be about a thousand euros to reach the EU average. In nearby Austria, the average net salary last year was 2053 euros, and in Belgium - an impressive 2091 euros.

In Bulgaria, the average net income last year was 413 euros, and the average Croatian wage was 797 euros, while the neighbouring Slovenians received an average of 1,038 euros per month back in 2021, writes Slobodna Dalmacija.

The Czechs were doing slightly better than the Croats were with a typical net salary of 813 euros, and the Danes were much better, with 3,100 euros, placing them at the very top of the European Union (EU). They are closely followed by the Swedes with a salary of 3062 euros.

The Estonians are also better paid than Croats typically are, with an average salary of 958 euros net, with the Latvians and Lithuanians being weaker with 648 euros and 645 euros respectively. The people of Cyprus receive an excellent 1,658 euros, and Malta also earns well from the Croatian perspective, with an average Maltese wage being about 2261 euros per month.

They are followed by rich EU countries: Finland with 2509 euros, France with 2157 euros and Germany with 2270 euros as an average salary.

The average Greek earns 917 euros, a Portuguese worker 846, a Pole 736, a Slovak 690, and a Hungarian 683 euros. Over in Romania, the average net salary is only 522 euros, meaning that only the Bulgarians are the poorest in the EU.

The average net salary in Italy is 1,762 euros, and in neighbouring Spain 1,718 euros. The real "heavyweights" are the Icelanders with 3435 euros and the Luxembourgers with 3009 euros, followed by the Irish with 2479 euros and the Dutch with 2263 euros.

For more, make sure to check out our lifestyle section.

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. 

For more, follow our dedicated lifestyle section.

Monday, 3 May 2021

Labour Minister Josip Aladrovic Discusses Refined Labour Law

May the 3rd, 2021 - Croatian Labour Minister Josip Aladrovic sat down to listen to the concerns both employers and employees have had to deal with throughout the pandemic, touched on the regulation of remote work and telework, and offered assurances about the refined Labour Law.

As Poslovni Dnevnik writes, the president of the Independent Croatian Trade Unions, Kresimir Sever, said on a recent HRT show that employees aren't in the center of attention, as was the case in previous years, because the coronavirus crisis has become a much more important topic. He added that workers' problems have been set aside, but they exist and they are very much still there.

''What's worse is that because of the coronavirus crisis, they've even intensified, the government has managed to stop most layoffs with its measures. However, a lot of other things were swept under the carpet. People are being forced to work from home, but without the addition of what's stipulated in an employment contract. Nobody asked them if they had the conditions for carrying out such work from home at all or not,'' Sever pointed out.

Sever also said some employers have taken workers from their annual leave in order to work from home, and some workers have been forced into annual leave. He said that the government paid four thousand kuna in wages for their job preservation measure, and some employers put their workers on the minimum wage, keeping the difference to themselves.

Sever emphasised that things were exceptionally difficult for people back during that time, especially because people lacked much needed social contact. The president of the Independent Croatian Trade Unions also pointed out that back at the beginning of the pandemic in 2020, some workers worked even without protective equipment. The workers also had a fear of losing their jobs, become unwell, and even death.

''Only now can people see how important a worker is, without a worker... there's nothing,'' he added.

Labour Minister Josip Aladrovic said when he listened to the president of the Independent Croatian Trade Unions, Kresimir Sever, who noted that the situation looked quite negative, and that he thought he was exaggerating. Sever replied to Labour Minister Josip Aladrovic that these were not exaggerations, but that people truly are afraid.

He said that the formal phase of the adoption of the Labour Law is beginning, and that it will minimise the problems that Sever had been talking about.

''The situation isn't all that black, but yes, the situation could be made better,'' the Minister emphasised.

The director general of the Croatian Employers' Association, Damir Zoric, disagreed with Sever. He said if an employer is doing something wrong, that it is on them and not all employers should be generalised by those taking advantage of government measures.

''I'd rather say that the situation is as Labour Minister Josip Aladrovic said it was - there are negative phenomena everywhere, but in most cases in this pandemic, good work has been done together,'' he added.

He stressed that employers, not just workers, also have many fears. Zoric said that there are also issues with employees and not only employers, but fortunately such people aren't in the majority. He added that certain problems need to be solved, such as those surrounding the Croatian attitude towards teleworking, because it hasn't been included in the Labour Law. He pointed out that more than thirty percent of people in Croatia have been working remotely ever since the pandemic struck.

Labour Minister Josip Aladrovic then said that the new Labour Law would include the proper regulation of telework, and that the framework of that law had already been set out.

''This act will be a proposal for a new Labour Law, which should define the roles of employers and the role of workers, as well as their protection, in a much better way,'' Aladrovic emphasised.

For more, follow our politics section.

Sunday, 28 March 2021

List of Croatian Counties, Cities to Give Pensioner Easter Bonuses

March the 28th, 2021 - A list of Croatian counties and cities set to provide Easter bonuses for the nation's pensioners has been published and appears to be continuing to grow year on year.

As Poslovni Dnevnik writes, there is a growing list of Croatian counties and cities that are set to provide Easter bonuses for those drawing Croatian pensions this year - some of them will distribute said Easter bonuses to pensioners registered in these areas for the first time in the election year and during the coronavirus crisis, while some also provided Christmas bonuses and introduced a monthly assistance for senior citizens a couple of months ago.

Easter bonuses for 2021 will be distributed to pensioners by numerous municipalities, over 30 cities, and also some Croatian counties.

The Mirovina.hr (Pension.hr) portal has singled out a list of all cities and counties that will give their help to those drawing pensions:

Trogir
Jastrebarsko
Ludbreg
Oroslavje
Medjimurje County
Vinkovci
Belisce
Otok
Imotski
Virovitica
Cakovec
Solin
Orahovica
Varazdin
Ivanic Grad
Dugo Selo
Velika Gorica
Opatija
Pozega
Koprivnica
Kutina
Mursko Sredisce
Bakar
Ozalj
Rovinj
Sisak
Osijek
Valpovo
Slavonski Brod
Djakovo
Slatina
Vukovar
Djurdjevac
Makarska
Sveta Nedelja
Beli Manastir
Dubrovnik
Osijek-Baranja County

The most generous Easter bonuses will be given to pensioners with registered residence in Velika Gorica near Zagreb, Ozalj, Opatija and Vukovar, where the figures stand at around 500 kuna. Others will give pensioners help of around 200 to 300 kuna.

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Wednesday, 17 February 2021

Coronavirus Allowance for Croatian Pensioners Coming?

February the 17th, 2021 - Are Croatian pensioners set to get a boost to their monthly income in the form of coronavirus allowance? If so, for some that amount could be as much as an additional 200 euros.

As Poslovni Dnevnik writes, the Labour Miniser Josip Aladrovic stated recently that given the severity of the economic situation caused by the spread of the novel coronavirus, compensation must be provided, from which it could be concluded that the Croatian Government is seriously considering the payment of one-time assistance to Croatian pensioners.

Croatian Pensioners' associations previously requested the payment of a one-time coronavirus pension supplement which would be calculated depending on the existing monetary amount of an individual person's pension.

For Croatian pensioners with pensions up to 2710 kuna per month, the supplement would be as much as 200 euros, people whose pensions are from 2710 to 5000 should, according to them, receive 100 euros each, and single people with a monthly pension of more than 5000 kuna should receive 50 euros, according to a report from Vecernji list. For this proposed one-time payment to Croatian pensioners, the state budget would have to provide around 1.1 billion kuna, Minister Aladrovic emphasised during a weekly show held on Croatian Radio.

''We're aware that some countries have paid out coronavirus allowances related to the increase in material costs of retirees during this trying period. We also need to find some sort of model of compensation. At the same time, the indexation of pensions is coming, for which we will see in just ten days how much it will be. When we know how much our indexation is, we will know precisely how much our fiscal capacity is,'' said Minister Aladrovic.

Looking at this year's budget, there is currently no money in it for coronavirus pension supplements, but the local elections in May are quickly approaching, so that argument could be more crucial given the country's fiscal capabilities, as Croatia should provide about 42 billion kuna for pensions this year.

However, in addition to the state budget, such a payment may be covered by some social programmes of the European Commission (EC).

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Monday, 14 December 2020

Aladrovic: Application for National Pension Allowance as of Tomorrow

ZAGREB, Dec 14, 2020 - The Croatian Pension Insurance Fund (HZMO)  will start accepting applications by elderly persons for the right to a national pension as of tomorrow, and about 20,000 beneficiaries who will receive HRK 800 per month are expected next year, Minister Josip Aladrovic said on Monday.

The law on a national allowance for the elderly, which enters into force on 1 January 2021, provides for an income for Croatian citizens over the age of 65 who have not secured an old age income and are not entitled to a pension.

The allowance will be paid by the HZMO  through commercial banks, and first payments will be made in February 2021 for January 2021.

The national allowance for the elderly will cover the most vulnerable part of the population, Labour, Pension System, Family and Social Policy Minister Josip Aladrovic told reporters ahead of a government session.

The estimated cost in the state budget is HRK 132 million, and we have ensured that much for 2021, he said.

It will be possible to submit an application for the national allowance in person at a regional HZMO office, by mail or online through the e-Citizen system.

Aladrovic said that the target group were elderly citizens who did not have enough years of insurance and who were not covered by the social welfare system for some reason.

Those are citizens who have more than 20 years of uninterrupted residence in the Republic of Croatia, fewer than 15 years of pensionable service and who are over 65 years of age, he said.

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