Personnel costs for entrepreneurs reach 129 billion kuna, an increase of 15.1 percent

Last year, there were 996,213 employees among 150,846 entrepreneurs in Croatia, taxpayers of profit tax, excluding financial institutions, with total personnel costs amounting to 129 billion kuna, which is 15.1 percent higher compared to 2021, according to a report by the Financial Agency (Fina).

Fina’s analysis shows that of the total personnel costs, the largest portion is allocated to net salaries and wages, amounting to 83.4 billion kuna, which constitutes a share of 64.6 percent of total costs. Tax and contribution costs from salaries reach 29.4 billion kuna, with a share of 22.8 percent, while 16.2 billion kuna goes to salary contributions, making up a share of 12.6 percent of total costs.

The share of personnel costs in total expenses of entrepreneurs last year was 12.4 percent, the analysis shows.

According to the reported costs for net salaries and wages for employees of entrepreneurs, in 2022, the average monthly net salary was calculated at 6,973 kuna, which is nominally 9.7 percent higher than in 2021.

The average monthly gross salary per employee borne by the employer in 2022 was 9,435 kuna (gross I), while the average monthly gross salary per employee borne by the worker was 10,792 kuna (gross II), Fina reported.

In 2022, for expense reimbursements, gifts, and employee support, 15.3 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 support for employees and in-kind benefits.

In 2022, entrepreneurs reported these costs in a total amount of 19.3 billion kuna, with the largest share, 79.4 percent, relating to expense reimbursements, gifts, and support for employees and in-kind benefits, which increased by 33.8 percent in 2022 compared to the previous year, amounting to 15.3 billion kuna.

Of this amount, severance pay accounts for 576.9 million kuna, representing a decrease of 10.7 percent compared to the previous year, Fina noted.