Naslov
In-work poverty in Croatia

Autori
Šućur, Zoran ; Babić, Zdenko

Vrsta, podvrsta i kategorija rada
Poglavlja u knjigama, ostalo

Knjiga
N-work poverty in Europe : a study of national policies

Urednik/ci
Spasova, Slavina ; Ghailani, Dalila ; Peña-Casas, Ramón ; Vanhercke, Bart

Izdavač
Publications Office of the European Union

Grad
Luxembourg

Godina
2019

Raspon stranica
1-20

ISBN
978-92-76-00774-6

Ključne riječi
In-work poverty ; social policy

Sažetak
In 2017, the in-work poverty1 (IWP) rate in Croatia was 5.8%, compared with 9.4% in the EU28. During the period 2012-2017 Croatia was in the group of 10 countries with the lowest rates of in-work poverty. The IWP rates among the self-employed were at least double those among employees (in some years they were almost four times larger). The IWP rates among those employed on permanent contracts fluctuated slightly at around 4%, while those of people employed on temporary contracts ranged from 10.5% in 2013 to 8.3% in 2015. IWP rates among those employed in part-time jobs were 3-5 times higher than the poverty rates of those in full- time employment, but the share of parttime work in total employment has been relatively low in Croatia (4.8% in 2017). As in most EU countries, IWP rates among employed men are higher than those among employed women. The lowest IWP rates were recorded in the oldest age group of the employed (55-64), while the youngest (18-24) had the highest rates. Education attainment level strongly influences the risk of in-work poverty. IWP rates for the employed in households with dependent children were higher than the poverty rates among the employed in childless households. Single-person households had on average the lowest IWP rates, in contrast to single-parent households, where the poverty rates were the highest. Key challenges related to IWP in Croatia have been: a large share of the employed on low wages ; an increasing trend toward temporary contract employment ; restricted access to social benefits or tax deductions for the employed on minimum or low wages ; and high tax levies, which reduce net salaries. The proportion of employees on the minimum wage ranges from 5% (according to the Statistics on Income and Living Conditions) to 8% (according to the Labour Force Survey) of the overall work force, while the share of low-wage earners amounted to 23.1% in 2014. Even though the minimum wage protects low-wage workers against poverty, this potential has been rather modest. Changes in the labour legislation in 2014, when a new Labour Act was passed, have enabled the growth of temporary contract employment. Thanks to an increase in the non- taxable part of the wage/salary, workers on minimum wages are not obliged to pay income tax, which increases their net wage and improves their living standards. Croatia does not have in-work benefits, but those employed on minimum or low wages can receive some social benefits, such as child allowances and pro-birth supplements. There are very limited opportunities for the employed to integrate paid work and social assistance because of very low income and property thresholds in social assistance schemes. The ratio of the minimum wage to the average wage has increased considerably in the recent decade (in the first half of 2018, it was 44% of the average wage). The government has announced a further increase in the net minimum wage in 2019 of 9%. The recent economic growth and labour shortages have created a new situation whereby the temporary work contract could become something of an exception, as is suggested in the Labour Law. Public works programme for social assistance recipients or the Permanent Seasonal Worker Scheme can be indicated as examples of good practice in anti-IWP policy in Croatia. Alongside the measures oriented towards an increase in the level of (minimum) wages, attention should also focus on other ways of preventing and mitigating IWP. On the one hand, it is important to increase work intensity at the level of the household, through the model of two breadwinners or by promoting the importance of the role of the secondary wage earner. On the other hand, it is necessary to supplement low wages/salaries with social transfers and tax credits or reliefs. The Eurostat indicators in place cover the majority of factors influencing IWP. There are no other instruments or tools in Croatia for monitoring IWP.

Izvorni jezik
Engleski

Znanstvena područja
Kognitivna znanost (prirodne, tehničke, biomedicina i zdravstvo, društvene i humanističke znanosti)

POVEZANOST RADA