Salary Growth Expected in Croatia: Here Are the Professions That Earn the Most and the Least

The average monthly net salary paid per employee in legal entities in Croatia for July this year amounted to 5,594 kuna, which is a real decrease of 0.9 percent compared to the previous month and an increase of 2.3 percent compared to July last year.

Other data from the Croatian Bureau of Statistics (DZS) show that the average net salary paid for July this year on a monthly basis, compared to June, is nominally lower by 1.6 percent. A nominal increase of 0.8 percent was achieved in July on an annual basis.

The highest average monthly net salary per employee in legal entities for this July was paid in air transport, amounting to 9,758 kuna, while the lowest was paid in clothing manufacturing, amounting to 3,390 kuna.

In the first seven months of this year, the average monthly net salary amounts to 5,663 kuna, which is nominally 1.5 percent higher compared to the same period last year, and a real increase of 3 percent.

The average monthly gross salary per employee in legal entities of the Republic of Croatia for July 2016 was 7,646 kuna, which is nominally 1.5 percent lower and a real decrease of 0.8 percent compared to June.

Compared to July last year, this salary is nominally higher by 1 percent and a real increase of 2.5 percent.

For the period from January to July 2016, the average monthly gross salary amounted to 7,736 kuna, which is nominally 1.9 percent higher compared to the same period in 2015, and a real increase of 3.5 percent.

Data on the average hourly wage for July show that the average monthly net salary per hour for July amounted to 33.12 kuna, which is 1.9 percent higher compared to June 2016, and 9.2 percent higher compared to July of the previous year.

In reflection on the DZS report, analysts from the Croatian Chamber of Economy (HGK) state that they expect a slight salary increase in the continuation of the year, which, along with somewhat more favorable trends in the labor market, will enable growth in personal consumption, thus remaining an important generator of economic growth.

They emphasize that, in order not to disrupt the competitiveness of the economy, it will be necessary to ensure that the growth of salaries is aligned with the growth of labor productivity, as evidenced by the fact that in the first half of this year, real wages grew faster than GDP growth.

“In July, the growth of salaries continues on an annual basis, although at a somewhat slower pace than at the beginning of the year, which will contribute to increased consumption and ultimately overall economic activity, but it is important to consider the possibility of disrupting the relationship between salary growth and productivity,” concludes Zvonimir Savić, director of the Sector for Financial Institutions, Business Information, and Economic Analysis at HGK.