Social security (Croatia)

1. Employer’s contributions relief (on the salary) for employment of young people
The goal is to include young people in the labor market by providing them the permanent employment. The employer who chooses this program will be five years free of paying the employer’s contributions from the gross salary (health insurance, unemployment insurance, accident and disability insurance).

Under the young people it is understood:

• less than 30 years old
• will be employed based under the permanent employment contract
• have been insured with the pension and health insurance
• who had no other permanent employment contract with the same employer before signing the employment contract

2. Additional unemployment insurance for disabled persons
The additional charges for unemployment insurance for disabled persons has been abolished due to increased contributions for unemployment for all employers up to 1.7%. The employer’s contributions (on the gross wage) from January 01, 2015 are as follows:

• contribution to health insurance – 15%
• contribution to public unemployment insurance – 1.7%
• contribution to accident insurance – 0.5%

3. Control of compulsory payments regarding salary
Into the social security law is entered what was earlier in the instructions regarding the manner of payment of budget revenues, mandatory contributions and revenues for financing other public needs (NN 49/2014 and NN 31/2014). Employer must pay the salary, taxes and contributions together. If the employer does not pay taxes and contributions together with the salary, the bank will block this payment and the Finance Agency will report this to the authorities. Herewith the non-payment of taxes should be prevented.