Foreign nationals with a work permit who lose their job will in future be able to register with the Croatian Employment ServIces (HZZ) and receive unemployment benefits. This is the result of an amendment to the Labour Market Act, which was discussed by the Croatian parliament.

“For the first time, they will be able to register as unemployed. The idea is to offer them a job immediately, to help them find new employment so that they do not have to return to their home countries by law,” said Ivan Vidis, State Secretary at the Ministry of Labour, Pension System, Family and Social Policy, on Wednesday.

As soon as their temporary residence permit expires, foreign workers are no longer entitled to benefits, Vidis clarified at the presentation of the legal changes.

Increase in unemployment benefit from 30% to 35% of the basic amount

“The most important thing is that these people can register on the unemployment register, not to receive benefits, but to help them find new jobs, because we urgently need these workers. Most of them are employed in jobs where there is a shortage of labour,” he added.

Vidis rejected the claim by Dalija Oreskovic (DOSIP party) that the foreign labour force is low-skilled, explaining that most of them have medium and some have high qualifications.

A GDP growth of 1% means at least 20,000 new jobs, Vidis said in response to criticism by Miro Bulj (Most party) of the unlimited import of foreign labour while young educated people are leaving the country.

Vidis announced that the Foreigners Act would also be amended to introduce a mandatory quota for Croatian citizens in companies hiring in professions with labour shortages.

In addition, the amendment to the Labour Market Act will increase the rate of unemployment benefit for the period between the 91st and 180th day from 30 to 35 of the basic amount. “We have decided to increase the adequacy of unemployment benefit because we believe that we must take into account the financial situation of the unemployed even when unemployment is at a record low,” said the State Secretary.

“Permanent Seasonal Worker” measure to be abolished

The increase is aimed at encouraging more unemployed people to register with the HZZ and shorten their unemployment through a structured job search process.

The government has decided to abolish the “Permanent Seasonal Worker” measure, Vidis said, in order to take full advantage of the current low unemployment rate. This new measure will allow seasonal workers to sign permanent labour contracts and work in other positions during the off-season.

In October 2024, 86,000 people were registered as unemployed with the HZZ. 20% of them received unemployment benefits, which means that they have worked for at least 9 months in the last two years, Vidis explained.

During the debate, the opposition raised concerns about the mismatch between education and labour market needs, suggested that people who become self-employed should receive benefits for another year and stressed the importance of continuous retraining and lifelong learning.