On 1 January 2014, the new Pension Insurance Act (“Act”) came into force. The Act brings numerous changes, among which one of the most important ones concerns shortening the deadlines for delivery of data for keeping records to the Croatian Institute for Pension Insurance (“CIPI”).
According to the previously applicable provisions, the deadline for registration of data was 15 days; the deadline has now been shortened by the Act to only 24 hours. Therefore, the data on the beginning / termination of the insurance and changes during the insurance, as well as data changes, need to be registered within 24 hours after the beginning / termination of the employment or the insurance, i.e. the change during the insurance. The mentioned provision applies accordingly to the registration of the beginning / termination of the business and changes in the business of the contributions payer (employer). The exception has been solely envisaged when the registered seat of the employer is outside of the Republic of Croatia in another EU member state, in which case the deadline amounts to 60 days. Stated changes were objected by the employers, who claim that the 24-hours-deadline is too short, especially considering the possible disturbances in Internet connections and insufficiently well-defined beginning for calculation of the deadlines. For non-registration within the stated deadlines, the penalty in the amount of HRK 5.000 – 50.000 for the contributions payer (employer), as well as in the amount of HRK 1.000 – 10.000 for the responsible person, is determined. It is important to mention that the new By-law on keeping records of the CIPI also applies as of 1 January 2014. According to the By-law, the contribution payers (employers) with more than 3 insured persons (employees) are obliged to submit the registrations electronically (after completing the registration process), with the transitional period of three months, during which the registrations may be made in the paper form as well.