Average net salary is stagnating in real terms

The average net salary paid in Croatia in the period from January to October 2008, despite a nominal increase of 6.5 percent compared to the same period of the previous year, is stagnating in real terms due to the rise in consumer prices, as shown by the analysis of the Financial Agency (FINA).

The average monthly net salary paid in the period from January to October last year in Croatia amounted to 4,920 kuna, according to FINA data. In the non-privatized (state) sector, the average monthly net salary per employee was 5,629 kuna, which is 14.4 percent higher than the state average and 25.9 percent higher than net salaries in the private sector. In the private sector, the average monthly net salary in the period from January to October 2008 was 4,470 kuna, which is 9.2 percent lower than the state average. The salary growth in the public sector was higher than that in the private sector. Thus, in the private sector, in the period from January to October 2008 compared to the same period the year before, a nominal increase in the average net salary of 6.2 percent was recorded, while a real decline of 0.3 percent occurred, whereas in the public sector, the nominal increase was 7.3 percent and the real increase was 0.8 percent. The average net salaries per worker by counties ranged from 5,640 kuna in the City of Zagreb to 3,732 kuna in Međimurje County. Only in the City of Zagreb was the average net salary higher than the state average, by 14.6 percent, while all other counties have average net salaries below the national average, with Međimurje County lower by 24.1 percent, Bjelovar-Bilogora County by 23.4 percent, Vukovar-Srijem County by 21.5 percent, Virovitica-Podravina County by 21.8 percent, etc. FINA’s analysis of salary payments in the period from January to October 2008 shows that according to certain areas of economic activity, the average monthly salary per worker ranged from 3,817 kuna in the fishing industry to 7,095 kuna in financial services. In all sectors, except for private households, a nominal increase in average net salaries was recorded, from 8.2 percent in agriculture, hunting, and forestry to 5 percent in financial intermediation. However, FINA notes that in the majority of sectors, 9 out of the 16 observed, salary growth was slower than consumer prices, so average net salaries in those sectors are in real decline. Real growth in average salaries is recorded only in five areas of activity – agriculture, hunting, and forestry at 1.6 percent, education at 0.8 percent, public administration and defense and compulsory social security at 0.6 percent, real estate activities, renting, and business services at 0.5 percent, and trade at 0.4 percent.

In construction and the supply of electricity, gas, and water, average net salaries are stagnating in real terms. In eight areas of activity, a higher average net salary than the state average is recorded, while in the other eight, it is lower. Higher averages than the state level were recorded in financial intermediation by 44.2 percent, public administration and defense, compulsory social security by 21 percent, health care and social welfare by 17.6 percent, supply of electricity, gas, and water by 16.3 percent, transport, storage, and communications by 13.3 percent, mining and extraction by 12 percent, real estate activities and renting by 7.5 percent, and education by 2.3 percent.

Average net salaries lower than the national average were paid in fishing by 22.4 percent, hotels and restaurants by 18.3 percent, construction by 15.5 percent, wholesale and retail trade by 15.3 percent, manufacturing by 7.9 percent, private households by 5.8 percent, agriculture, hunting, and forestry by 4.4 percent, and other social, personal, and service activities by 0.8 percent. The highest average net salary paid in the period from January to October 2008 is in the financial intermediation sector at 7,095 kuna.

Following are public administration and defense and compulsory social security with 5,952 kuna, health care and social welfare 5,787 kuna, supply of electricity, gas, and water 5,721 kuna, transport, storage, and communications 5,573 kuna, mining and extraction 5,508 kuna, etc. The lowest average net salary is in fishing at 3,817 kuna, followed by hotels and restaurants at 4,017 kuna, wholesale and retail trade at 4,166 kuna, construction at 4,155 kuna, manufacturing at 4,529 kuna, etc. (Hina)