Work and Wages

Minimum Wage

Minimum wages are governed under the Minimum Wages Act of 2013.

There are no occupational or regional minimum wages in Croatia. Minimum wage is determined at the national level annually (for the upcoming year) by a Government Decree.

The minimum wage rate is applicable to all workers and employers in Croatia. The minimum wage for a current year cannot be less than the minimum wage for the previous year (wage cuts are not allowed under article 7 of the Minimum Wages Act). In exceptional cases, a collective agreement may stipulate a lower minimum wage but not lower than 95% of the amount prescribed by the Government Decree.

Minimum wage level is determined by the government after consultation (by the Minister of Labour) with the social partners, i.e., the Croatian Employers' Association and the Union of Autonomous Trade Unions of Croatia. The social partners have representation in Economic and Social Council. The minimum wage is set by the Government after hearing the recommendations and proposals of the Economic and Social Council of Croatia about the coordination of the salary policy.

Minimum Wage Act of 2013 prescribes the criteria for determining and revising the minimum wage rates. These criteria are the monthly poverty threshold for a single household, coefficient of the number of people (total population) in relation to the number of households,  ratio of total population to the number of active persons, and the change in the average index of consumer prices of goods (CPI). The at-risk-of-poverty threshold amounted to HRK 22,916 annually in 2013 for one person household and HRK 48,124 annually for a household comprising two adults and two children.

While proposing revision in minimum wages, Economic and Social Council also takes into account the effects of the fluctuation of prices and salaries on the economic stability and development.

A fine from HRK 60,000 to 100,000 is imposed on an employer who fails to pay the employee the minimum wage prescribed the government decree.

Sources: Minimum Wage Act (Official Gazette No. 39/2013); §90 &221(3)ofLabour Code 2014 (Official Gazette No. 93/2014); Regulation on Minimum Wage (Official Gazette No. 156/2013)

Current minimum wage rates can be found in the Minimum Wage section.

Regular Pay

Wages are the remuneration which an employer pays to an employee for work performed in accordance with an employment contract, legal instrument or a collective agreement. Wages are comprised of basic wages and additional remuneration, bonuses and additional payments paid in the cases prescribed by law.

The relevant law on payment of wages is Labour Code 2014. An employer is under obligation to pay wages (to workers) whose amount and period is determined by regulation, collective agreement, employment rules or employment contract. If the basis and criteria for the payment of wages are not governed by a collective agreement, the employer who employs at least twenty workers must establish such criteria in the employerrulebook. Wages and salaries are paid in cash and upon completion of work. The wagepayment period may vary for different workers however it cannot exceed one month.

According to Article 92(3) of Labour Code 2014, the wage of previous month must be paid within 15 days of the following month at the latest unless other defined conditions from the Labour Code or a collective agreement stipulate otherwise.

If the wage level has not been established by law, employment contract, collective agreement or employer rulebook,  the employer is required to pay the employee an appropriate wage.

An appropriate wage is a wage regularly paid for equal work, and if it is impossible to establish such a wage, then a wage established by the court according to the circumstances of the case.

The employer must provide the calculation (pay slip) to the worker showing how the amount of remuneration/wages is determined, at the latest fifteen days from the date of payment of wages, benefits or severance pay.

There is a provision for higher level of wages (wage premium) for workers employed under arduous working conditions. An employee has the right to wages during a period of time when work is interrupted due to the fault of the employer or due to other circumstances for which the employee is not responsible. The employer must not, without the consent of the employee, settle his or her claim against such employee by withholding payment of salary or part of salary.

sources: §90-97 of Labour Code 2014 (Official Gazette No. 93/2014)