Croatia raises salary support to €525 per month

Croatian Prime Minister Andrej Plenkovic has announced new measures to safeguard jobs that go further than his government's initial proposals on March 17. Under the current plan, the state is helping 65,000 companies by paying them €435 per month per employee (net) for the months of March through May. That aid is currently supporting 400,000 employees. The government's new plan would raise that minimum wage payment to €525 per month. Plenkovic added that companies that suffered a drop of income between 20 and 50 percent would be exempted from paying corporate income tax and social security contributions for the next three months. Companies whose revenues dropped more than 50 percent would be completely exempt from tax liabilities, except for those earning more than HRK 7.5 million (€982,000) whose tax liabilities would be reduced proportionally. The third element of the measure concerns the payment of VAT, which will be deferred until invoices are paid.