Croatian Post (HP) said on Thursday it and the social partners agreed a 25% pay rise for all postal employees as a response to the labour market challenges faced by all employers.

HP said that last year it raised the wages of operatives by 20% and that the latest rise applied to all employees. The rise will cost €30 million annually.

Asked by the Croatian state news agency Hina when the rise would start, HP said wages would go up by 10% as of 1 July, when all employees will also get a €150 bonus, by 7.5% as of November and by 7.5% as of next March.