The coronavirus crisis is having a lasting and profound effect on the Croatian employment scene with 8,000 fewer people employed and a massive 300,000 workers on the minimum wage. Employees across the country are the first visible signs of the economic situation in Croatia as companies struggle to survive.
With many small businesses actually banned under government coronavirus regulations from working the financial possibilities of holding onto their employees is difficult. The government is assisting in paying some wages, but only around 3,200 Kuna a month, and due to the weight of demand many businesses still haven’t had an answer as to whether they can receive the funds or not.
The Tax Administration had received, up to and including yesterday 39,047, requests from companies and craftsmen to delay their payment of taxes and other public benefits, and the majority of these requests are coming from the tourism industry. Smaller businesses and self-employed people are simply closing their businesses and waiting for a brighter future, whenever that may be.