Demography – A Social and Economic Issue of National Interest

Demographic challenges are one of the key strategic issues for the future of Croatia. The decrease in population and aging population pose a serious threat to the development of society and the economy. Therefore, focusing on strengthening families and encouraging childbirth becomes not only a social but also an economic issue of national interest.

Starting from March 1, 2025, significant demographic measures will come into effect, including the increase in maternity benefits and the duration of paternity leave. Existing beneficiaries who will be on leave on the effective date of the law will receive increased financial support. These measures are designed to meet the needs of modern families and encourage the return of young people to Croatia.

In this regard, the Government of the Republic of Croatia has decided to introduce significant changes related to maternity benefits to reduce the financial burden on parents, encourage a balance between family and work obligations, and improve parents’ rights during maternity leave.

Key Changes to the Maternity Benefits Law

1. Increase in Parental Benefits

• Parents will receive 100% of their salary during the entire first year of leave. The benefit for the second six months of parental leave for employed and self-employed individuals will increase from 995 euros to a maximum of 3,000 euros. The benefit for parental leave from the first to the third year of life for twins, the third child, and each subsequent child will increase from 551 euros to 803 euros.
• The benefit for mothers working part-time until the child’s first year of life will increase from 485 euros to 971 euros, and from the first to the third year of life for twins, the third child, and each subsequent child will increase from 485 euros to 600 euros.

2. Extension of Paternity Leave

• Paternity leave will be extended from 10 to 20 days for one child, and from 15 to 30 days for twins or more children. The increase also applies to adopted children.

3. Increase in Newborn Benefits

• The one-time benefit for the birth of a child increases from 309 euros to 618 euros, marking the first increase in 17 years.

4. Increase in Benefits for Temporary Work Incapacity

• The benefit due to pregnancy complications and sick leave for caring for a sick child up to 18 years of age increases from 565 euros to 995 euros.

These measures are enabled by an increase in the budget for demographic measures. The new changes in social policy are expected to improve family life and stimulate demographic growth.

Family as the Foundation of Society

In 2025, the Ministry will implement a series of programs to support families, including cooperation with the “Croatia for Children” Foundation, worth 400,000 euros, and ensuring the availability of childcare in local communities with a budget of 20 million euros. The “Croatia for Children” Foundation was established to support children in Croatia, providing them with a better and more fulfilling upbringing. Its mission includes increasing birth rates, promoting family values, and empowering families with more children, those from sparsely populated and traffic-isolated areas, single parents, and children without parental care.

Encouraging Stay, Return, and Immigration to Croatia

The new set of measures is aimed at encouraging the stay, return, and immigration of Croatian emigrants to revitalize depopulated areas. It has been announced that 22 million euros will be allocated for this purpose. Programs will be implemented for employment in Northern, Pannonian, and Adriatic Croatia, loans for micro, small, and medium-sized entrepreneurs investing in depopulated areas, support for citizens for relocation, and co-financing the organization of transport for daily migrations in supported areas.

To encourage the return of Croatian emigrants, the implementation of programs to encourage immigration and employment of Croatian emigrants in cooperation with MROSP, HZZ, HGK, and HUP has been announced, as well as the continuation of scholarships for learning the Croatian language and increasing the scholarship from 300 to 400 euros, and the implementation of experiential programs involving 420 young people annually.