Observation (CEACR) - adopted 2023, published 112nd ILC session (2024)

Employment Injury Benefits Convention, 1964 [Schedule I amended in 1980] (No. 121) - Croatia (Ratification: 1991)

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Articles 14(3), (4) and (5) of the Convention. Periodical payments in case of partial permanent incapacity. The Government indicates in its report that compensations for physical impairment and disability pension are not related, and are calculated and paid independently. The Committee observes that, according to sections 39 and 56 of the Pension Insurance Act, a disability pension due to a permanent partial disability resulting from an employment injury is paid only when a minimum degree of incapacity of at least 51 per cent is attained and is calculated in a percentage applied to the worker’s previous insured earnings. The Government further indicates that, on the other hand, compensation allowance is paid monthly due to a physical impairment of at least 30 per cent, caused by an occupational injury or disease, regardless of whether it led to the onset of a permanent disability. According to the table established by section 63 of the Pension Insurance Act, such compensation is calculated based on the degree of the impairment. The Committee takes note of the information that workers entitled to compensation due to physical impairment of 30 per cent, 50 per cent and 70 per cent would receive, respectively, €29.85, €49.74, and €69.64, considering a calculation base of €248.72 in 2023, defined by law. The Committee therefore observes that workers who have suffered an employment injury and hold a partial permanent loss of earning capacity less than 51 per cent are not entitled to partial disability pension and, in case they qualify for a compensation due to physical impairment, may only receive this allowance when a minimum of 30 per cent of loss of faculty is assessed.

The Committee concludes that: (i) compensation for physical impairment (loss of faculty) paid when a minimum of 30 per cent of loss of faculty is assessed, is calculated at amounts below the parameters established by Articles 14(3), (5) and 20 of the Convention, related to its Schedule II; (ii) partial permanent disability pension is paid only when a minimum degree of 51 per cent of loss of earning capacity is assessed; and (iii) workers with permanent disability or physical damage assessed at less than 30 per cent do not seem to be entitled to any type of compensation for physical impairment or disability pension.

The Committee wishes to highlight that, according to Article 14(3) and (5) of the Convention, the minimum prescribed degree of partial permanent loss of earning capacity or of faculty, that enables the right to receive periodical cash benefits, shall be prescribed as to avoid hardship, while the level of cash benefits shall represent a suitable proportion of the periodical payment established by Article 20 and Schedule II, in relation to the total permanent incapacity for a standard beneficiary. Moreover, the Committee previously observed that incapacity assessed below 25 per cent could be regarded as not substantial and therefore could be compensated by lump-sum payments. In this context, the Committee requests the Government to take the necessary measures to ensure that workers with loss of earning capacity or corresponding loss of faculty between 30 per cent and 51 per cent, resulting from an employment injury, are entitled to periodical cash benefits calculated in accordance with Articles 14, 20 and Schedule II of the Convention, representing a suitable proportion of cash benefits guaranteed in case of total permanent incapacity. The Committee further requests the Government to state whether any compensatory payments are provided for physical impairment or partial disability assessed at less than 30 per cent, with a view to extending protection to cases of partial but not substantial loss of capacity or faculty, and to ensure that workers suffering such incapacity avoid hardship, in accordance with Articles 14(4) and (5), and 20 of the Convention.

The Committee is raising other issues in a request addressed directly to the Government.