The minimum legally prescribed monthly net salary in Croatia could increase from the current 3,750 kuna (€500) to 4,000 kuna (€533) in 2023, with the labor ministry's task force planning to "discuss the matter soon," state agency Hina said on Friday, in their summary of an article published by the Jutarnji List daily.

The government is expected to adopt the new minimum wage regulation by the end of October. Jutarnji List said that last Wednesday the European Parliament adopted a directive on “adequate minimum wages which are expected to allow workers in the EU to cover the cost of their basic needs.”

Under the directive, setting minimum wages remains in the competence of EU countries but they will have to guarantee decent living conditions for workers, taking into consideration the cost of living and wage levels. To assess the adequacy of the legally prescribed minimum wages, countries can define a consumer basket of goods and services with real prices, or alternatively set it at 60 percent of the median gross wage or 50 percent of the average gross wage.

In Croatia, this would mean that the minimum gross wage should be 5,246 kuna (€696) since Croatia’s average gross wage is 10,492 kuna (€1,393) and the median gross wage is 8,562 kuna (€1,136).

Trade unions contacted by Jutarnji List said they thought this was not sufficient “for a decent life.” Unionist Kresimir Sever was quoted by the Jutarnji List as saying that they would insist on €700 as the minimum gross monthly salary. The EU Council is expected to formally approve the agreement in September, after which member countries will have two years to implement the directive in their national legislation.

The new directive will apply to all workers in the EU who have an employment contract or an “employment relationship,” Hina said, without clarifying.

(€1 = 7.52 kuna)