CMNT_TITLE

Social Security (Minimum Standards) Convention, 1952 (No. 102) - Croatia (RATIFICATION: 1991)

Other comments on C102

Observation

Direct Request

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Part XI (Standards to be complied with by periodical payments). (a) Article 65 or 66 of the Convention. Calculation of the level of benefits. According to the information provided by the Government’s report, the level of all pension insurance benefits granted under Parts V, VI and X of the Convention for a standard beneficiary selected under Article 65 of the Convention is lower than the guaranteed minimum pension in Croatia, which in this case the beneficiary receives in place of a regular pension. As the Committee has pointed out in its previous comments, social security schemes guaranteeing a minimum pension could be assessed with respect to the standard beneficiary selected under Article 66 of the Convention. In view of the present situation in Croatia where the minimum pension ensures better protection than insurance benefits, the Committee would ask the Government to calculate the level of old-age benefits in its next report according to the methodology laid out in Article 66.

(b) Article 65(10), or Article 66(8). Adjustment of benefits. The Government states in its report that the current pension value is adjusted at the rate equal to the sum of 50 per cent of the rate of change of consumer prices and 50 per cent of the rate of change of the average gross wages of all employees in Croatia in the previous six months. For the period January 2007–January 2008, the consumer price index increased by 3.9 per cent and the wages index by 6.5 per cent. The average old-age pension was adjusted therefore by 5.25 per cent. The Committee notes, however, that the average level of adjustment of disability pension due to employment injury (4.16 per cent) and that of survivors’ benefits (3.82 per cent) does not correspond to the abovementioned adjustment formula. It would therefore like the Government to explain the reasons for those differences in adjustment levels of pensions and to show, on the basis of updated statistics, that the purchasing power of pensions is maintained.

Part XIII (common provisions), Article 71(2). Total of insurance contributions borne by employees. According to the report, the insurance contributions of employees protected constituted 62.09 per cent of the total of the financial resources allocated to the protection of employees and their wives and children in the pension insurance covered by Parts V, VI, IX and X of the Convention. Such situation is contrary to the Convention which requires the proportion of the financial resources constituted by the insurance contributions of employees protected not to exceed 50 per cent. In this situation, in order to demonstrate that the proportion of the financial resources constituted by the insurance contributions of employees protected does not exceed 50 per cent of the total of the financial resources allocated to the protection of employees and their wives and children, the Committee advises the Government to take into account, in addition to the pension insurance, of the financial resources allocated to benefits provided under Parts II, III, IV and VIII of the Convention accepted by Croatia.

Part III (Sickness benefit). Article 17. The Committee notes that in order to be eligible for sickness benefits, the Compulsory Health Insurance Act requires a qualifying period of either 12 months of insurance without interruption or of 18 months within the last 24. It would be grateful if the Government would indicate whether the determination of such a qualifying period was made necessary with a view to preclude abuse within the meaning of Article 17 of the Convention.

Part IV (Unemployment benefit). Article 22 (read in conjunction with Article 65 or 66). The Committee notes that the maximum rate of unemployment benefit is fixed at 1,200 kunas (HRK), while, according to the Government’s report the wage of a skilled manual male employee is HRK3,557. Consequently, the standard beneficiary would be guaranteed a benefit amounting to 33.7 per cent of previous earnings, while the Convention provides that, whenever an upper limit is established, the maximum benefit needs to correspond to at least 40 per cent of the reference wage. The Government is invited to indicate whether family or social assistance benefits are paid to beneficiaries of unemployment benefits and, if so, provide adjusted calculations indicating the replacement rate obtained by integrating the additional benefits paid to an unemployed standard beneficiary with a dependant wife and two children.

Article 24. Duration of benefit. Please indicate the provisions regulating the period during which unemployment benefit is paid.