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Financing Apprenticeships DB TopBar

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  • Introduction
  • Overview – mapping
  • Financing of apprenticeship schemes
  • Financing instruments
  • Cross-country overview
  • Cross-country comparison
  • Scope and glossary
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  • Advanced search
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Database on financing apprenticeships in the EU

Financing Apprenticeships DB

  • Introduction
  • Overview – mapping
  • Financing of apprenticeship schemes
  • Financing instruments
  • Cross-country overview
  • Cross-country comparison
  • Scope and glossary
  • Feedback
  • Advanced search

Unified model of education

PDF Version
Financing of apprenticeship scheme
Scheme name
Unified model of education
Country
Croatia
Duration

3-4 years

Apprentices remuneration - characteristics

Type: allowance, fixed amount per hour
Remuneration setting: centrally, as share of the average net salary in the economy in the previous year
Coverage: on-the-job training
Variation(s): by the year of apprenticeship

Apprentices remuneration - amount

Average regulated remuneration: EUR 507.8 per year
The calculation is based on the formula: amount paid per hour x minimum number of training hours per year (both are regulated by legal acts). The amounts vary depending on the year of apprenticeship: 1st year: 3.30 HRK/h x 560h =1.848,00 HRK. 2nd year:  6.59 HRK/h x 630 = 4.151,70 HRK. 3rd year: 8.24 HRK/h x 640 = 5.273,60 HRK. Average : 3.757.76 HRK = EUR 507.8 (exchange rate 1 EUR = 7.4 HRK)
Level in PPS per year (average): 774.08
Level in PPS per hour (average): 1.27
Share of the average salary of worker: 18.3% on average (by law: 10% for the 1st year, 20% for the second year, 25% for the 3rd year)

Remuneration (annual gross income) in 3 selected occupations (EUR): Same for all three occupations (hairdresser, motor mechanic, bricklayer), i.e. 1st year: 249.73; 2nd: 561.04; 3rd: 712.65; 4th: nap (Exchange rate: 1 EUR = 7.4 HRK)

Time foreseen for on-the job-training

20%-50% of the overall duration of apprenticeship
Number per hours per year (average): 610.
The estimate is based on the actual number of hours per year: 560 hours in the 1st year, 630 hours in the 2nd year, 640 hours in the 3rd year.
This average (610) corresponds to 35% of the average hours for a full time job (estimated to 1,752).

Apprentice social insurance

-

Additional support for apprentice

-

Financing on-the-job training

Employers pay remuneration to apprentices and receive support from the State in the form of tax incentives. Tax reduction depends on the number of apprentices that employers train. Employer training 1-3 apprentices may reduce income tax base or self-employment income by 5%. If employer trains more than 3 apprentices, tax deduction can be increased by 1 p.p. for each additional apprentice, up to 15% of the tax base or self-employment income. Employers may also receive the grants under the ESF-funded project 'Apprenticeship for craft occupations' of the 'Operational Programme Effective Human Resources 2016-2020' to cover partly the cost of apprentice remuneration and fees to the mentors.

 

Financing off-the-job training

Companies may individually contribute to the off-the-job part training by providing their facilities and their staff members as instructors.
The EU funds used to support the scheme cover both the on- and off-the-job components of the apprenticeship.

Financing of the scheme overall

EU funds used:
2016: approx. EUR 2,000,000 (HRK 11,520,000 through the project "Scholarships for students in vocational occupations" and HRK 3,000,000 through the project “Apprenticeships for craft occupations” of the Operational Programme Effective Human Resources 2016-2020)
2015: approx. EUR 1,500,000 (HRK 11,000,000 under the activity "Scholarships for apprenticeships" and "Master of his craft - apprentices" of the "Entrepreneurship impulse" programme).

Illustration: sources of funding and financial flows
Assessment of financing arrangements

Strength: Financial incentives are considered to provide motivation to employers to engage in apprenticeships.
Weaknesses: Various stakeholders at different levels are responsible for different parts of apprenticeship funding and financing (e.g. Ministry of Education for teacher salaries, counties and cities for material, Ministry, counties and cities together for scholarships/ allowances).
In practice, although students may sign a contract with employers, they might not receive remuneration, as control and compliance mechanisms do not exist.

Contextual information

Statutory minimum wage: EUR 414.45 per month (2016, S2); EUR 433.35 (2017, S1); EUR 442 per month (2017, S2)
Average yearly working time (hours) for a full time job: 1,752

More on financing instruments for this scheme

Programme "Entrepreneurship Impulse", activity "Master of his craft-apprenticeship" in 2015 and "Apprenticeship for trades and crafts occupations" in 2016
Croatia
Grants for companies
Tax incentives
Croatia
Tax incentives

More on this apprenticeship scheme

Unified Model of Education
Croatia
On this page:
  • Duration
  • Apprentices remuneration - characteristics
  • Apprentices remuneration - amount
  • Time foreseen for on-the job-training
  • Apprentice social insurance
  • Additional support for apprentice
  • Financing on-the-job training
  • Financing off-the-job training
  • Financing of the scheme overall
  • Illustration: sources of funding and financial flows
  • Assessment of financing arrangements
  • Contextual information
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