Annual Personnel Costs for Entrepreneurs 113.4 Billion Kuna

In the past year, there were 964,742 employees among 144,259 entrepreneurs in Croatia – corporate income tax payers excluding financial institutions, with total personnel costs amounting to 113.4 billion kuna, which is 8.8 percent higher compared to 2020, according to the Fina report.

The largest share of these total costs understandably belongs to net wages and salaries – 73.5 billion kuna, accounting for 65 percent of total costs.

Tax and contribution costs from wages amount to 25.4 billion kuna with a share of 22.4 percent, while contributions on wages amount to 14.4 billion kuna, representing a share of 12.7 percent of total costs.

The share of personnel costs in total expenditures of entrepreneurs last year was 13.6 percent, the analysis shows.

According to the reported costs for net wages and salaries, employees of entrepreneurs last year were calculated an average monthly net salary of 6,350 kuna, which is nominally 6.1 percent higher than in 2020.

The average monthly gross salary per employee borne by the employer in 2021 was 8,548 kuna (gross 1), while the average monthly gross salary per employee borne by the worker was 9,791 kuna (gross 2), the analysis shows.

In 2021, for expense reimbursements, gifts, and employee support 13.3 billion kuna

In addition to personnel costs related to regular employee earnings, labor costs also include expenses for gross author fees and contracts for work only for individuals without registered activities, expenses for work performed through student and pupil services, costs of agency workers, compensation for board members, as well as reimbursements, gifts, and employee support and in-kind receipts.

In 2021, entrepreneurs reported these costs in a total amount of 16.6 billion kuna, with the largest share, 80.4 percent, relating to expense reimbursements, gifts, and employee support and in-kind receipts, which in 2021 increased by 20.1 percent compared to the previous year and amounted to 13.3 billion kuna. Of this, severance pay accounts for 667.3 million kuna, representing a decrease of 11.4 percent compared to the previous year, the Fina analysis showed.