Average net salary in June higher by 138 kuna

The average monthly paid net salary per employee in legal entities in Croatia for June this year amounted to 5,415 kuna, which is nominally 2.6 percent or 138 kuna higher than in May, and is real higher by 2.7 percent, reported the Croatian Bureau of Statistics (DZS).

The average monthly paid net salary for June was nominally higher by 0.8 percent, and real higher by 0.1 percent compared to June last year. Since the salaries for June were paid in July, their increase was likely influenced by changes in income tax rates that came into effect on July 1, as well as the abolition of the lower rate of special tax of two percent on salaries from three to six thousand kuna. The impact of the abolition of the lower rate of crisis tax (the higher rate of 4 percent on salaries above six thousand kuna will be abolished from the beginning of November) is also evident from the statistical data that the special tax affected the reduction of the average salary for June by two percent, while in the period from August last year its impact was around 2.8 percent.

The special tax had the least impact on average salaries in administrative and support service activities, which it reduced by one percent, and the most in mining and extraction, where the crisis tax reduced the average net salary by 3.3 percent. Among the activities, the highest average net salary for June was paid in air transport, amounting to 9,521 kuna. This was followed by advertising and market research with 9,371 kuna and the production of refined petroleum products with 8,994 kuna. The lowest average net salaries for June were paid in the clothing manufacturing sector at 2,740 kuna, in the production of leather and related products – 2,965 kuna, and in wood processing and products from wood and services related to the management and maintenance of buildings and landscaping – 3,173 kuna. For the first six months of this year, the average monthly paid net salary amounted to 5,287 kuna, which is nominally lower by 0.5 percent compared to the same period in 2009, and real lower by 1.3 percent. (H)