The Croatian politicians have recently discussed including jobless nationals from third countries in its unemployment scheme, making this category of people eligible for government benefits.
The amendments to the Labour Market Act were discussed in the Croatian Parliament this week, where it was also mentioned that foreign workers with a valid work permit and who do not have an employment contract would be entitled to unemployment benefits after registering with the Croatian Employment Service (CES), Schengen.News reports.
For the first time, they will be able to register as unemployed. The idea is to offer them a job immediately, to find a new job immediately, and not have to return to their home countries by force of law.
Croatia to ‘Reward’ Foreign Workers With More Rights & Benefits
The State Secretary made it clear that access to unemployment benefits would be limited to only foreigners holding a valid temporary residence permit, and once the document’s validity expires, foreigners will no longer be eligible for compensation.
It is crucial that we enable these people to enter the register, not so that they can receive compensation, but to offer them a new job, since we are crying out for these people. Most of these are professions in short supply.
However, there were concerns raised among deputies that foreign workers are only low-skilled, indicating that including them in the unemployment scheme could lead to misuse of the benefits.
In response to this claim, which was mentioned by Dalija Oreskovic, Vadis pointed out that most of the foreign workers in Croatia are medium-skilled workers as well as highly skilled ones.
The State Secretary also pointed out that foreign workers are crucial to the Croatian economy, revealing that a minimum of 20,000 new jobs need to be filled, which can come as a result of one percentage point GDP growth.
In the past, Croatian employers were criticised for poor work conditions offered to third-country nationals, and witnessing progress, such as including them in the unemployment scheme, could improve Croatia’s reputation as a destination for foreign workers.
Croatian Authorities Raise Unemployment Benefits Period to 180 Days
Some of the key points discussed during this plenary session include extending the period for unemployment benefits from 91 to 180 days so unemployed individuals can benefit from the government for longer periods of time.
In addition, the unemployment benefits could be increased from 30 to 35 per cent of the base, with the average benefit being €400. The opposition argues that this amount is not sufficient.
The increase in the benefit from 30 to 35 per cent of the base will not have a significant impact on the life of an unemployed person; the average benefit is around €400, which is insufficient considering the galloping prices.
Vidis also noted that a mandatory share requirement for Croatian citizens at the company level in shortage occupations will be introduced. In addition, young people will be eligible for compensation if they spend six months unemployed instead of two years, as was the rule until recently.