Minimum Wages Act of, 2013 (Croatia)

Minimum Wages Act of 2013

Minimum wages are governed under the Minimum Wages Act of 2013. The Act describes minimum wage as the minimum monthly gross salary that the employee is entitled to work full time.

There are no occupational or regional minimum wages in Croatia. Minimum wage is determined at the national level annually (for the upcoming year) by a Government Decree.

The minimum wage rate is applicable to all workers and employers in Croatia. The minimum wage for a current year cannot be less than the minimum wage for the previous year (wage cuts are not allowed under article 7 of the Minimum Wages Act). In exceptional cases, a collective agreement may stipulate a lower minimum wage but not lower than 95% of the amount prescribed by the Government Decree.

Minimum wage level is determined by the government after consultation (by the Minister of Labour) with the social partners, i.e., the Croatian Employers’ Association and the Union of Autonomous Trade Unions of Croatia. The social partners have representation in Economic and Social Council. The minimum wage is set by the Government after hearing the recommendations and proposals of the Economic and Social Council of Croatia about the coordination of the salary policy.

Minimum Wage Act of 2013 prescribes the criteria for determining and revising the minimum wage rates. These criteria are the monthly poverty threshold for a single household, coefficient of the number of people (total population) in relation to the number of households, ratio of total population to the number of active persons, and the change in the average index of consumer prices of goods (CPI). The at-risk-of-poverty threshold amounted to HRK 22,916 annually in 2013 for one-person household and HRK 48,124 annually for a household comprising two adults and two children.