Rights of unemployed people are determined by the Law on mediation of employment and entitlements during unemployment (OG 80/08). This Law is in accordance with the so called labour legislation, and its purpose is to facilitate the effective functioning of the labour market and to create the essential legal grounds for insuring the adequate level of social security of unemployed people.
According to the Law, unemployed people are entitled to:
- financial benefits,
- income support and compensation of training expenses
- a lump-sum income support payment and travel and moving expenses compensation
- pension insurance.
An unemployed person is entitled to unemployment benefits if he/she has been working for at least 9 months in the last 24 months. In order for a person to realize his/her right to benefits, he/she must register at the CES within 30 days after the termination of employment, sick-leave, maternity or parental leave, adoptive or guardian parental leave, and issue the request for financial benefit. If a person fails to do so in 30 days due to a justified cause, he/she can register and issue the request within 8 or 60 days after that.
A person who caused the termination of employment with his/her behaviour or his/her own will is not entitled to unemployment benefits. An unemployed person, depending on the length of the total working experience, is entitled to receive benefits for 90 to 450 days. Unemployed persons who have been working for 32 years are entitled to receive benefits until they start new employment, or until some of the circumstances determined by the Law on the termination of the right to unemployment benefits occur.
The base for determining the amount of financial benefits is determined by the average amount of salary decreased by compulsory insurance contributions realized in the three-month period prior to the termination of employment, or service. Salaries which are in accordance with the special regulations are not included in the base. If the base cannot be determined by the salary, it is determined by the amount of the minimum salary, decreased by the compulsory insurance contributions pursuant to the special regulation, depending on a percentage.
The amount of financial benefits in first 90 days is 70 % of the base, and for the rest of the period it amounts to 50 % of the base. For people who are entitled to receive benefits until they start new employment, or until circumstances determined by the Law on the termination of the right to unemployment benefits occur, benefits amount to 40 % of the base after 12 months.
The highest amount of the benefit in first 90 days cannot be higher than 70 %, and for the rest of the time, it cannot be higher than 50 % of the Croatian average monthly salary for the previous year. For people who receive the benefit until they start new employment, or until circumstances determined by the Law on the termination of the right to the benefit occur, the amount of benefit cannot be higher than 40 % of the amount of Croatian average monthly salary for the previous year according to the last officially published figures.