Croatia’s average net monthly wage rose by 2.17% m/m and 5.24% y/y in nominal terms to HRK6,022 (€811) in March, data from the country's statistics office showed on May 23.
Croatian salaries were on an upward trend last year supported by changes in personal income taxation legislation, a move which increased consumption. Consumption in 2017 is likely to be supported by a government measure to increase the minimum gross wage by 5% to HRK3,276 in 2017.
The average gross wage in March also increased by a nominal 2.26% m/m and 3.63% y/y to HRK8,109.
In November, four members of the Union of Croatian Education Workers have filed the first lawsuits demanding compensation after the government failed to company with a public wage hike agreement signed in 2009.
A seven-year-old agreement between the Croatian government and public sector trade unions requires the government to raise public sector wages if the country’s GDP growth exceeds 2% on average in two consecutive quarters. The Croatian economy grew 2.8% y/y in the third quarter of last year and 1.9% y/y in the last quarter. As a result, conditions were met for a public wage hike.
However, pay hikes have not yet been introduced and the government does not have still the resources to raise salaries.