Latest changes to Croatian law (Effective 2023)
Each year, Croatia tweaks and adjusts its laws. In this post, we will briefly review the major changes in Croatian laws implemented for 2023 and the government’s priorities for 2023.
Jump to a change:
- Pension insurance act
- Labor act and Act on workers’ claims insurance
- Act on maternity and parental benefits
- Accounting act
- Government priorities for 2023
The facts are these…
Latest changes in Croatian laws effective from 2023
As of January 1, 2023, Croatia has a new model for family pensions. Retired workers can use part of the family pension of a deceased spouse or common-law partner in the amount of 27% of the corresponding part of the family pension for one member if:
- They are the only beneficiary of the family pension
- They turned 65 years
- Their pension from the Croatian mandatory pension insurance is not higher than 80 AVM
Part of the family pension can be used by another family member if other family members use it due to a complete loss of working capacity or as a child with the status of a disabled person.
The pension factor for calculating the family pension, determined depending on the number of family members, has been increased by 10%.
The lowest pension
From January 1, 2023, the lowest pension increased by an additional 3%.
Work and use of pension
It is possible to withhold the payment of the old-age pension in the case of full-time or half-time employment and beneficiaries according to the previous regulations on rights from pension and disability insurance (military insured, policemen, judicial policemen) and according to the regulation on the rights of professional firefighters.
Increases in starting factors
The starting factor for determining the old-age pension for an insured person acquiring the right to a pension for the first time after reaching the prescribed age for acquiring the right to an old-age pension and has 35 years of pensionable service is increased from the previous 0.34% to 0.45% per month for each month after reaching the prescribed years of life for acquiring the right to that pension, as well as the starting factor for the redetermination of the pension that was suspended during the period of employment from 0.15% to 0.25%.
The starting factor for determining the old-age pension for a long-term insured person who receives a pension for the first time after reaching the age of 60 and has 41 years of insurance experience in effective duration is increased by 0.15% per month for each month after reaching the prescribed years of age for acquiring the right to that pension.
If the insured person has completed 41 years of insurance experience in the effective period before reaching the age prescribed for the acquisition of the right, the starting factor is increased by 0.15% per month for each month after the age of life prescribed for the acquisition of the right has been reached to the old-age pension for a long-term insured person, and after reaching the prescribed age for acquiring the right to the old-age pension, it increases by 0.45% and can amount up to 1.27%.
[Read: How to retire in Croatia]
The law came into force on January 1, 2023. The article on the obligation to submit all collective agreements to the ministry responsible for labor will come into force on July 1, 2023, and additional articles on labor via digital working platforms on January 1, 2024.
The most significant changes are related to:
- Prevention of the unjustified conclusion of fixed-term employment contracts
- New ways of performing permanent seasonal jobs
- More complete and precise regulation of work at a separate workplace and remote work, whereby the worker can choose the place of work
- More flexible arrangement of additional work for another employer, without the consent of the parent employer and with a greater number of permitted working hours
- Prescribing a minimum wage increase for work on Sundays (50%)
- Right to an unpaid leave of 5 days a year to provide personal care to members of families or households
- Right to absence from work due to urgent family reasons of the worker when their presence is required
- Right to unavailability in professional communication during holidays and leave with foreseen exceptions
- Obligation to contract the salary in the gross amount and its payment to the employee’s transaction account in order to protect the employee and prevent undeclared work
- Absence of the right to a notice period and severance pay to workers who meet the conditions for old-age pension (65 years of age and 15 years of pensionable service) with the purpose of encouraging employers to keep such workers in their employment
- Possibility for trade union members who negotiated the conclusion of a collective agreement to achieve more favorable material rights for the purpose of encouraging trade union work and a new form of work carried out via digital work platforms with the primary aim of protecting workers
Act on insurance of workers’ claims
The changes expand the coverage of workers – it enables protection for workers whose employment relationship ended 12 months before the opening of bankruptcy proceedings.
The protected period refers to five months before the opening of bankruptcy proceedings or five months before the termination of employment if it ended within 12 months before the opening of bankruptcy proceedings.
The changes to the Act on maternity and parental benefits came into force on January 1, 2023.
Fees for three-year leave for twins and the third or each subsequent child, i.e., for the period after the child turns one year old, increased from 2.328,20 kn to 4.175,50 kn per month.
The amount of financial support for the parents of children with severe developmental disabilities during the use of childcare leave until the child reaches the age of eight also increased from 2.328,20 kn to 4.157,50 kn per month. The right to work half-time for increased childcare is implied in the same way.
The law also regulates the right to foster care leave. It may last six months for a child up to seven. If two or more children are adopted at the same time, or a child with severe developmental disabilities is adopted, it can be extended by 60 days.
The second adopter who is not on adoptive leave can use ten working days of leave until the end of six months after adopting the child.
The length of staž (service) before realizing the right to paid leave due to the birth of a child is reduced from nine months of continuous service to six months, and instead of 12 months with interruptions in the last two years to nine months.
In addition, the beneficiary who interrupts her leave due to employment and spends six months continuously at work exercises the right to parental leave for the remaining duration if she meets the conditions prescribed by law and if she has not transferred the right to the father.
Division of entrepreneurs
The introduction of the euro comes with the following changes to entrepreneurial categories:
Micro-entrepreneurs are those who do not exceed the threshold indicators in two of the following three conditions:
- Total assets – 350.000,00 euros
- Income – 700.000,00 euros
- Average number of workers during the business year – 10
Small entrepreneurs are those who are not micro-entrepreneurs and do not exceed the threshold indicators in two of the following three conditions:
- Total assets – 4.000,000,00 euros
- Income – 8.000.000,00 euros
- Average number of workers during the business year – 50
Medium-sized entrepreneurs are those who are neither micro nor small entrepreneurs and do not exceed the threshold indicators in two of the following three conditions:
- Total assets – 20.000.000,00 euros
- Income – 40.000.000,00 euros
- Average number of workers during the business year – 250
[Read: Types of business in Croatia]
Auditor and related amounts
Kuna is converted to euro in part related to auditing and implies the following:
If they are not subject to audit in accordance with paragraphs 1 and 2 of Article 20, annual financial statements and annual consolidated financial statements of joint stock companies, limited partnerships, and limited liability companies whose individual or consolidated data in the year preceding the audit exceed the indicators in at least two of the following three conditions:
- Total assets – 990.842,13 euros
- Income – 981.684,25 euros
- Average number of employees during the business year – at least 25
In 2023, the Croatian government plans to work on the following:
- Preparation of amendments to the Law on foreigners related to
- Stricter sanctions for violence against women, increasing rights of women victims of violence, and expanding the support system for victims and witnesses
- Decentralization in the management of state assets – part of the authority would be transferred to local and regional self-government unit
- Regulation of purchase and collection of receivables and tipping status
- Demining Osijek-Baranja and Šibenik-Knin counties – read about the state of landmines in Croatia here
- Revitalization of the Institute of Immunology, prerequisites for the establishment of an emergency helicopter medical service, plans for the prevention and early detection of melanoma and fight against cardiovascular diseases
- Reconstruction of schools for the transition of all elementary schools in Croatia to single-shift work
View our other law articles
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- Gun and weapon laws in Croatia
- How laws are made in Croatia
- Latest changes to Croatian law (Effective 2022)
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Please note: Information provided by Expat in Croatia is only for the purposes of guidance. It does not constitute legal or financial advice in any form. Croatian laws and bureaucratic rules often change, and each personal case is individual, so different rules may apply. For legal advice, contact us to consult with a licensed Croatian lawyer. For financial advice, contact us to consult with a licensed Croatian tax advisor or accountant.