In 2020, the share of social protection in the GDP of the Republic of Croatia amounted to 24.3%, which represented an increase of 3.0 percentage points compared to 2019. The GDP in current prices decreased1) by approximately 33.9 billion kuna, while total social protection expenditures increased by approximately 4.3 billion kuna.
Concerning receipts, social contributions were the most frequent ones (55.5% of all social protection receipts in 2020). General government contributions followed with 40.2%.
Social protection benefits accounted for 98.3% of total social protection expenditures in 2020. By type of social benefits, those in cash were the most frequent ones (64.9%). By characteristics, non-means-tested social protection benefits (both in cash and in kind) were the most frequent ones (95.2%).
Comparing the data by social protection functions, the largest share of social benefits was spent on relieving the financial burden related to the Old age risk (34.7% of all social protection benefits), followed by the Sickness/Health care function (33.1%). The least resources were spent on the Housing function (0.0%).
Comparing the data on the share of costs for the social protection in the national GDP with the EU Member States, the Republic of Croatia fell behind the EU-27 average by 6.9 percentage points in 2019. Viewed by shares of social protection functions in GDP in 2019, the Old-age function fell behind the EU-27 average by 3.6 percentage points, the Sickness/Health care function by 1.0 percentage points, the Unemployment function by 0.6 percentage points, the Family/Children and Housing functions by 0.4 percentage points each and the Social exclusion function by 0.3 percentage points, while the Survivors function exceeded the EU-27 average by 0.1 percentage points. The Disability function remained at the same level.
Comparing the data on social protection expenditures per inhabitant with EU Member States, calculated in purchasing power standard (PPS), the Republic of Croatia fell behind the EU-27 average by 50% in 2019. According to this indicator, all social protection functions in the Republic of Croatia were below the EU average, and in absolute terms, the Old-age function fell behind the most.
1) The data on the gross domestic product used in this First Release have been taken over from the official web page of the Croatian Bureau of Statistics: https://www.dzs.hr/Hrv_Eng/Pokazatelji/MSI%20BRUTO%20DOMACI%20PROIZVOD.xlsx.
1 TOTAL SOCIAL PROTECTION EXPENDITURES AND EXPENDITURES ON SOCIAL PROTECTION BENEFITS, BY FUNCTION AND ESSPROS SCHEMES
1) Revised data.
Job mediation and unemployment rights
The increase in total expenditures in this scheme in 2020, as compared to 2019, was mainly caused by an increase in expenditures in the Unemployment function due to the payment of supports related to the COVID-19 pandemic.
Pension insurance, first pillar
The increase in total expenditures in this scheme in 2020, as compared to 2019, was mainly caused by an increase in expenditures in the Old age function due to the growth of the old-age and anticipated old-age pensions. The increase in expenditure was also recorded in the Survivors function due to the growth of survivors’ pensions.
Basic health insurance
The main reason for the increase in scheme expenditures in 2020, as compared to 2019, was an increase in expenditures on out-patient medical care. The increase was also recorded in medicine expenditures and salary compensation during sick-leave and maternity leave.
The main cause of the increase in the scheme expenditures in 2020, as compared to 2019, was the increase in expenditures in the Disability function that refer to personal disability benefit, parent caregiver’s benefit and assistance and care supplement.
The main cause of the increase in the scheme expenditures in 2020, as compared to 2019, was the increase in expenditures in the Family/Children function that refer to parental leave and other maternity and parental supports.
Social protection in City of Zagreb
The main cause of the increase in the scheme expenditures in 2020, as compared to 2019, was the increase in expenditures in the Family/Children function that refer to subsidy for stay-at-home parent and expenditure for pre-school education.
2 SHARE OF EACH FUNCTION IN TOTAL AMOUNT OF SOCIAL PROTECTION BENEFITS
1) Revised data.
3 SHARE OF SOCIAL PROTECTION EXPENDITURES AND EXPENDITURES ON SOCIAL PROTECTION BENEFITS IN GDP
1) Revised data.
4 SOCIAL PROTECTION EXPENDITURES AS SHARE OF GDP, EU-27 AND REPUBLIC OF CROATIA, 20191)
1) Data for the EU-27 and individual EU Member States were taken over from the table Expenditure on social protection, available on Eurostat's official web page https://ec.europa.eu/eurostat/web/social-protection/data/main-tables on 8 February 2022. Data for the Republic of Croatia, indicated in this table, have been revised in the meantime (revised data are used in this First Release) and they will be updated in accordance with the standard Eurostat’s procedure.
5 SOCIAL PROTECTION EXPENDITURES PER INHABITANT, CALCULATED IN PURCHASING POWER STANDARD (PPS), EU-27 AND REPUBLIC OF CROATIA, 20191)
1) Data were taken over from Eurostat's official web page: http://ec.europa.eu/eurostat/web/social-protection/data/main-tables on 8 February 2022.
6 SOCIAL PROTECTION EXPENDITURES PER INHABITANT, EU-27 AND REPUBLIC OF CROATIA, BY SOCIAL PROTECTION FUNCTIONS, CALCULATED IN PURCHASING POWER STANDARD (PPS), 20191)
1) Data were taken over from Eurostat's official web page http://ec.europa.eu/eurostat/web/social-protection/data/main-tables on 8 February 2022.
7 TOTAL NUMBER OF PENSION BENEFICIARIES, BY SOCIAL PROTECTION FUNCTIONS AND SEX
1) Covering disability pension beneficiaries bellow the legal retirement age (65 years for men and 60 years for women, irrespective of the transitional period). Beneficiaries above the legal retirement age are presented in line with the ESSPROS methodology, under the item Old-age pension beneficiaries.
Sources and methods of data collection
Data on social protection in the Republic of Croatia presented in this First Release are collected by gathering administrative data from reporting units.
Coverage and comparability
The ESSPROS is a harmonised system that serves as an instrument of the analysis and comparison of financial flows of the social protection. The objectives of the ESSPROS are to provide a comprehensive and coherent description of the social protection in the EU Member States and candidate states for the membership in the European Union, financing of social benefits, and to establish a system suitable for the international comparability and harmonisation with other statistics.
The ESSPROS consists of the Core System and two modules. The Core System consists of a stable, annually collected set of data on receipts and expenditures of the social protection, while modules provide additional sets of statistical information on particular forms of the social protection.
The Core System collects, at the annual basis, data on the social protection in gross amounts (that is, before the recipient of the social protection benefit pays for them any kind of taxes, contributions or other compulsory provisions).
For the Republic of Croatia, 17 active social protection schemes have been identified and included within the ESSPROS coverage:
ESSPROS Scheme 2 (General pension scheme – first pillar) encompasses all pension beneficiaries under special regulations.
The module on pension beneficiaries serves to collect information on pension beneficiaries and on characteristics of pensions.
Definitions and explanations
Social protection encompasses all interventions of public or private bodies intended to relieve households and individuals of the financial burden of the defined set of risks or needs, provided that there is neither a simultaneous reciprocal nor an individual arrangement involved (intervention where the recipient of social protection is obliged to provide simultaneously something of equivalent value in exchange).
Risks or needs expressed in the ESSPROS methodology as functions of the social protection scheme that require the social protection are listed below.
Sickness/Health care – the risk of sickness comprises the maintenance of the income and support in cash in connection with a physical or mental illness, excluding disability. The health care need covers maintenance, restoration or improvement of the health of the people protected, irrespective of the origin of the disorder.
Disability covers support in cash or kind (except health care) in connection with the inability of physically or mentally disabled people to engage in economic and social activities.
Old age includes income maintenance and support in cash or kind (except health care) in connection with old age.
Survivors imply income maintenance and support in cash or kind in connection with the death of a family member.
Family/Children include support in cash or kind (except health care) in connection with the costs of pregnancy, childbirth and adoption, bringing up children and caring for other family members.
Unemployment implies income maintenance and support in cash or kind in connection with unemployment.
Housing includes assistance in settling of housing costs.
Social exclusion not elsewhere classified covers benefits in cash or kind (except health care) specifically intended to combat social exclusion where it is not covered by one of the other functions.
The function of social protection refers to the primary purpose for which social protection is provided, irrespective of legislative or institutional provisions.
The observation unit is the social protection scheme. According to the definition, the social protection scheme is a distinct body of rules, supported by one or more institutional units, governing the provision of social protection benefits and their financing.
The expenditures of social protection schemes are the following: social benefits, administration costs, transfers to other schemes and other expenditure.
Social protection benefits, as the most extensive social protection expenditure, consist of transfers, in cash or in kind, by social protection schemes to households and individuals to relieve them of the burden of the defined set of risks or needs. Social benefits refer exclusively to cash payments, reimbursements and directly provided goods and services.
Administration costs are the costs charged to the scheme for management and administration thereof.
Transfers to other schemes are unrequited payments made to other social protection schemes.
Re-routed social contributions are payments that a social protection scheme makes to another scheme in order to maintain or accrue the rights of its protected people to social protection from the recipient scheme.
Other expenditure means miscellaneous expenditure by social protection schemes.
Receipts of social protection schemes are the following: social contributions, general government contributions, transfers from other schemes and other receipts.
Social contributions are the costs incurred by employers on behalf of their employees or by protected persons to secure entitlement to social benefits.
Employers' actual social contributions are payments made by employers to insurers to secure entitlement to social benefits for their employees, former employees and their dependents.
Employers' imputed social contributions are the costs incurred by employers by granting social benefits or by promising social benefits payable in future, to their employees, former employees and their dependents, without involving an autonomous insurer, and without maintaining segregated reserves for that purpose in their balance sheets.
Social contributions paid by protected persons are payments made by individuals and households to social protection schemes in order to obtain or keep the right to receive social benefits.
General government contributions are costs to general government of running government-controlled non-contributory schemes, and financial support provided by general government to other resident social protection schemes.
Transfers from other schemes mean unrequited payments received from other social protection schemes, which primarily includes social contributions re-routed from other schemes.
Other receipts include miscellaneous current receipts of social protection schemes.
Government payments to employers (including incentives related to the COVID-19 pandemic) are included in the ESSPROS survey coverage only in the following cases:
- the employer retains the employees for whom they receive incentives and whom they pay salary
- the employee for whom the incentive is requested does not work a part of the working time proportionate to the amount of the incentive.
Purchasing power standard (PPS) is an artificial common currency eliminating the effect of price level differences across countries. Theoretically, one PPS can buy the same amount of goods and services in each country.
Module on pension beneficiaries
Pension beneficiaries are defined as recipients of one or more periodic cash benefits of a social protection scheme falling within seven pension categories (disability pension; early retirement benefit due to reduced capacity to work; old-age pension; anticipated old-age pension; partial pension; survivors' pension; early retirement benefit due to labour market reasons), but person who receives more than one pension is counted only once – double counting is to be avoided.
|COVID-19||COrona VIrus Disease-19|
|ESSPROS||European System of Integrated Social Protection Statistics|
|EU-27||European Union (27 Member States)|
|GDP||gross domestic product|
|PPS||purchasing power standard|
|0.0||value not zero but less than 0.05 of the unit of measure used|
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