Nearly three quarters of Croatian employers intend to pay out higher year-end bonuses based on new rules on non-taxable receipts, the Croatian Employers' Association (HUP) said on its website on Tuesday.

Last week the HUP polled around 200 Croatian companies on whether the new increase in non-taxable bonuses would affect their businesses, with results showing that 74 percent of employers said they would increase the bonus amount for 2018.

The new package of tax reform bills, due to come into force on December 1, include the raising of non-taxable salary bonus amounts from 2,500 kuna (€336) to 7,500 kuna (€1,000).

Since some of the companies had made their financial plans for the current year last year, before the new tax bills are to come into effect, some 26 percent of employers said they would not be able to use the new tax break to pay higher bonuses.

“Although this measure will not help reduce costs to a large extent, most employers will take this opportunity to reward their employees. That’s why we want to encourage and support the government in any proposal that might lead to further easing of the tax burden on businesses,” HUP Director-General, Davor Majetic, said.

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