The Croatian government has decided to increase the minimum wage by €130 to €970 gross per month from next year, Prime Minister Andrej Plenkovic said at a cabinet meeting on Thursday.

The decision was made this month so that all entrepreneurs can plan their activities for next year in good time, he added.

“So the minimum wage will be about 15% higher than it is now. In this way, we are helping the people who receive the minimum wage,” said Plenkovic, recalling that with this increase, the minimum wage would rise by 134% since 2016, from €414 to €970. This puts the minimum wage at 54% of the national average wage and 63% of the median wage.

Help for employers with a high proportion of employees receiving the minimum wage

The increase in the minimum wage automatically raises the hourly wage for students from €5.25 to €6.06. The Minister of Science, Education and Youth, Radovan Fuchs, will make a special decision on this, the Prime Minister announced.

He also announced compensation measures for employers who pay their employees the minimum wage so that they can maintain their jobs and economic activity in their financial plans. These measures are to be implemented through the Croatian Employment Services.

“We have tasked the Croatian Employment Services with developing compensation measures to maintain jobs, especially for those employers who have a high proportion of employees receiving the minimum wage,” said Plenkovic.

Croatian Employment Services to make up the difference

He added that in the manufacturing industry, for example, which has a high proportion of minimum wage workers, the Croatian Employment Services the difference in the minimum wage increase for 2025 based on the Minimum Wage Act.

For the first three months, employers who submit an application to the Croatian Employment Services will receive compensation for the difference between the current €840 and €970 to keep their business running smoothly.

In addition, for each employee currently receiving the minimum wage, the employer can apply for compensation equal to the difference between the current and future minimum wage, totalling €390 per employee.

The Prime Minister said he would discuss this in detail with the social partners.