The Croatian government is stepping in to protect jobs in Omiš after a devastating wildfire damaged businesses across the area earlier this month. The state will cover the cost of gross wages for permanent employees whose workplaces were damaged and cannot currently operate normally. The initial measure will cover nine business premises and just under 40 permanent employees, with employers able to receive compensation equal to the contracted gross salary, up to €1,500 per employee per month.
The support will apply from August wages, with applications opening on August 26, and is currently planned to continue until May 2027. The government says the main goal is to prevent workers from losing their jobs while businesses recover. This is particularly important for companies connected to tourism and hospitality, where operations often depend directly on physical premises. Workers on fixed term contracts will be treated differently, with authorities looking for alternative positions where possible and considering other employment measures through the Croatian Employment Service.
The wage support is part of a much larger recovery effort. Croatia has already approved €20 million in emergency state funding for Omiš, while the city has received more than €1 million in donations from individuals and companies. A formal declaration of a natural disaster is expected on September 1, after which residents and businesses will have eight days to submit damage claims. Expert teams will then assess the losses, with the city expecting the process to take no more than 50 days. Homes, businesses, vehicles, boats, tourist facilities and agricultural areas were among the property damaged, with preliminary estimates putting the total losses at more than €100 million.
For affected companies, keeping experienced workers could be essential to rebuilding. Velum Nautica, for example, has 11 permanent employees, some of whom have worked there for between 15 and 25 years. The company’s material losses are estimated at slightly more than €1 million, while its building is still being assessed. The company hopes to restart production in December, initially at reduced capacity. As Omiš enters the recovery phase, government wage assistance could give damaged businesses valuable time to rebuild while keeping workers employed and preserving the workforce needed for operations to eventually resume.
