The labor market plays the most important role in determining the standard of living of the citizens of the Republic of Croatia, but this labor market is more characterized by the preservation of existing employment than the creation of new jobs. Unemployment is a hot topic, despite the significant differences in employment or unemployment figures across different official sources. The Croatian social security system covers pension, health and unemployment insurance. Social security contributions are paid in respect of earned income or on an artificial basis, depending on the individual's status in the social security system and other relevant circumstances. Social security in Croatia is divided into three main branches: pension, health and unemployment insurance. It is funded by employees, the self-employed, employers and the state. All Croatian employees are entitled to unemployment benefits if they are between 15 and 65 years of age, with at least 9 months of employment in the last 24 months. They must apply to the Employment Service within the first 30 days of unemployment. Depending on the duration of employment, the benefit is paid from 90 to 450 days, with an additional lump sum of 2, 4 or 6 monthly unemployment benefits. Older employees are exempted from the rule if they have spent 32 years working and have less than 5 years remaining until they are fit for retirement age. They are entitled to unemployment benefits until they receive new employment or retire. Benefits are denied to any person whose employment is completed voluntarily or because of misconduct. Remuneration depends on the average salary of workers received during the previous three months before the termination of the contract and ranges from 976 to 1200 kn.