LNF05-2014-Employment of Persons with Disability | KPMG | HR

LNF05-2014-Employment of Persons with Disability

LNF05-2014-Employment of Persons with Disability

 The By-law applies to all employers who employ at least 20 employees and it sets out the criteria for determining the percentage (quota) of persons with disability that have to be employed.


Director, Regulatory Services

KPMG in Croatia


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The quota is directly related to particular employer’s business activities as classified by the National Classification of Business Activities.  


An employer who employs 50 or more employees out of those employees must employ at least 2%, 3% or 6% of persons with disability.  For example, wholesale activities, financial and insurance activities, require 2% of employees with disability; construction activities and real estate activities require at least 3% of employees with disability; while health care activities require 6% of employees with disability.  Those percentages are reduced by 1 percentage point for employers who employ 20 or more but less than 50 employees, but cannot be lower than 2%.


In determining the total number of employees, one must take into account shareholders who are employed by their companies, as well as sole proprietors.  Seasonal employees are not to be considered.


It is possible to exempt from the quota only those work posts which have special working conditions and in relation to which there is consent from the Institute for expertise, professional rehabilitation and employment of persons with disability (“the Institute”).

The By-law foresees the possibility of satisfying the prescribed quota by entering into certain special arrangements with a person with disability such as a business cooperation agreement, trainee relationship, etc.  Such special arrangements have to be reported to the Institute within 8 days after coming into effect.


Those employers that fail to meet the prescribed quota must pay on monthly basis into the State Budget the amount of 30% of the minimum salary for each person with disability that employers are required to employ.  Employers are required to report the total amount of compensation by completing a special form and filing the same with the Institute within 8 days of such compensation becoming due and payable. Please note that the Institute has until 1 November 2014 to publish applicable reporting forms.  In general, the obligation to pay disability compensation due to non fulfillment of quota and report to the Institute will start to run on 1 January 2015.


The By-law also prescribes rewards for employers with less than 20 employees who employ persons with disability which disability is not work related.


Employers who already employ persons with disability must report those employees to the Croatian Pension Fund between 1 May and 31 October, 2014, failing which they will not be allowed to account for those persons in their quota.


For further information, please contact Marinela Mostić via telephone number +385 (0)1 5390 160 or via e-mail mmostic@kpmg.com  or Hrvoje Pajtak via telephone number  +385(0)1 5390 062 or via e-mail hpajtak@kpmg.com.

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