Gov't puts forward bill increasing parental leave allowance

Gov't puts forward bill increasing parental leave allowance

Gov't puts forward bill increasing parental leave allowance Izvor: (ilustracija), Unsplash

As of April 1, the maximum pay during parental leave (after the first six months of the child's life) will be raised to HRK 5,654 (€761) from HRK 3,991, which is the current amount, the government has proposed in a bill on maternity and parental allowances.

Under the bill, as of April 1, 2020 the maximum allowance paid for the duration of parental leave to employed and self-employed parents would be raised from the current amount of HRK 3,991 (€537) to HRK 5,654.

The amount would be received for six months if the right is used by one parent, plus an additional two months (a total of eight months) if the right is used by both parents.

This is the second increase in those allowances in the last three years of the government's term and the government's decision is expected to cover 60% of employed mothers and fathers.

"This is a step towards complete delimitation, but at present we have to keep in line with the policy of responsible public finance management," said Demography, Family Affairs, Youth and Social Policy Minister Vesna Bedekovic.

Maternity allowance (paid in the first six months of the child's life) would continue to be paid as part of the mother or father's salary and would not be capped.

The applicant's previous duration of service, which is a precondition for being granted maternity or parental allowance, is reduced from 12 to 9 months of uninterrupted service or 12 months of on-and- off service instead of the current 18 months of on-and-off service.

Prime Minister Andrej Plenkovic said this was an important demographic measure.

The pay during parental leave has been more than doubled, from HRK 2,663, the amount of parental leave at the beginning of the government's term, to HRK 5,654, which means that those who have a salary of up to HRK 5,654 will practically have the same salary for the other six months of their parental leave, Plenkovic said.

It is estimated that the bill will cost an additional HRK 160.65 million in 2020, an additional HRK 214.19 million in 2021 and as much in 2022.

(€1 = 7.43 kuna)

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