Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

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

The Committee takes note of the information and statistics provided by the Government in its reports, particularly with respect to Articles 8 and 23 of the Convention, and draws the Government’s attention to the following points.

Article 14(3)–(5) of the Convention. Permanent total and partial incapacity. The Committee recalls that, in accordance with sections 30 and the following of the Act on Pension Insurance of 1998, general inability to work is defined as the permanent loss of the ability to work caused by changes in a person’s health that cannot be cured. Occupational inability to work is defined as a permanent reduction of the ability to work for more than one half (51 per cent or more) as compared to a physically and mentally healthy person of the same or similar education and capacity. General inability to work (corresponding to permanent total disability) and occupational inability to work (corresponding to permanent partial disability) both give right to a disability pension. In addition, in case of physical damage resulting from employment injury and entailing a loss of earning capacity of at least 30 per cent, the victim receives a lifelong allowance the amount of which depends on the degree of physical damage and represents a percentage of a base amount established by law (3,326 Croatian Kuna (HRK) in 2008). However, persons who suffer employment injury entailing less than 30 per cent disability do not have the right to a disability pension or the right to an allowance for physical damage. These persons seem to be excluded from any form of protection against employment injury, because the Croatian social security system does not provide for compensatory lump- sum payments in case of loss of earning capacity which is not considered as substantial. The Committee wishes to recall in this respect that Article 14(4) covers cases of partial loss of earning capacity (usually in the range of 5–30 per cent) which could be considered as not substantial and compensated by a lump-sum payment, if not by a periodical pension. The Committee therefore asks the Government to indicate how it intends to give effect to this provision of the Convention. Please also indicate the percentage above which the permanent loss of working capacity is considered total, and compare the amounts of cash benefits paid to the standard beneficiary with total incapacity to the amounts received for incapacity of more than 30 per cent, 50 per cent and 70 per cent.

Article 14 (in conjunction with Article 19 or 20). Level of periodical payments. The Committee notes the indication in the Government’s report under Convention No. 102 that the level of disability pension in case of total incapacity, together with the family allowance granted to a standard beneficiary, would, if calculated in accordance with Article 19 of Convention No. 121, ensure a replacement rate of 59.53 per cent. Nonetheless, as the amount of the pension would be lower than the minimum pension, the beneficiary would be granted the minimum pension which represents 64.90 per cent of the reference wage, above the 60 per cent required by the Convention. Referring to its comments under Convention No. 102, the Committee wishes to point out that social security schemes complying with the levels of benefits prescribed by the Convention on the basis of the minimum pension guaranteed by the scheme should be assessed with respect to the standard beneficiary selected under Article 20 of the Convention. It therefore invites the Government to include in its next report updated calculations of the level of pension insurance benefits made according to the methodology laid out in Article 20.

Article 16. Benefit for the constant help of another person. The Government reiterates in its report that the allowance for assistance and care by another person was abolished in 1998 as a benefit granted in the framework of the health insurance scheme. It also states that the issue will be regulated by the social welfare regulations, but does not specify the requirements to be met by victims of employment injuries who need the constant help or attendance of another person in order to qualify for supplementary benefit under the social assistance system. The Committee requests that the Government supply this information in its next report, together with explanations concerning the practical implementation of sections 56 and following of the Act on Pension Insurance providing for compensation for physical damage.

Article 18(2). Funeral expenses. According to the report, pursuant to the Basic Health insurance Act of 2006, compensation for funeral expenses is no longer a benefit payable under the basic health insurance scheme. Please indicate how effect is given to this provision of the Convention since the adoption of the above legislation.

Article 22(2). Payment of part of the benefit to dependants. The Committee notes the Government’s indication that when a beneficiary stops receiving a benefit payable under the pension insurance scheme for the reasons mentioned in Article 22(1) of the Convention, no payment is made to the persons maintained by this beneficiary given that a pension is a personal entitlement. The Committee recalls that under this provision of the Convention, where a benefit is suspended, part of it must be paid within prescribed limits to the dependants of the persons concerned. It would therefore ask the Government to explain how effect is given to this provision of the Convention in cases other than those referred to in section 54(9) of the Pensions Act.