Grants for Island-Based Employers

Grants are based on the basis of a public call published annually by the Ministry of Regional Development and EU Funds

The Ministry of Regional Development and EU Funds, based on the low value aid scheme for island employers for the initiation of economic activities and the preservation of jobs, implements the measure of granting low value aid to island economic operators for the initiation of economic activities as well as for the preservation of jobs, in order to stimulate the competitiveness of the economy on the islands and the Peljesac peninsula.

The implementation of this measure contributes to the sustainable and demographic development of islands, creating conditions for the preservation of existing jobs, facilitating the employment of new employees and improving business, and the development of island companies as the basis for the development of island economy.

In accordance with the provision of Article 37 of the Islands Act, island employers are entitled to grant aid once a year for activities important for the economic development of islands referred to in Article 35. Of the law.

The beneficiaries of the aid are island operators carrying out their activities on the island. The employees they employ must have permanent residence on the island and continuity of work for at least 12 months without interruption with the same employer (for the job preservation measure), i.e. 6 months without interruption with the same employer during the period for which the aid is granted (for the measure of initiating an economic activity).

The share of ownership of the state, regional and local self-government unit in the ownership structure of the beneficiary of the aid shall not exceed 50% and the insular employer shall not be a financial institution (bank, insurance company, savings and loan cooperative, etc.). Aid may be granted for all activities, except those in the fishery and aquaculture sector and primary agricultural production which derive the right to grant aid under specific acts of the European Commission.

In the less developed islands (islands of the first group), island employers are entitled to support in the full amount of one average paid monthly gross salary without a salary contribution, and in the more developed islands (islands of the second group) half such salary.