Last year, 1,029,659 people were employed in 156,145 companies (excluding financial institutions) in Croatia that are subject to profit tax. Personnel costs totalled €19.9 billion, which according to an analysis by the Croatian Financial Agency (FINA) represents an increase of 16.7% compared to 2022.

On the occasion of the World Day for Decent Work, which is celebrated on 7 October, FINA analysed the personnel and labour costs of companies for 2023.

Of the total personnel costs, 63.8% were attributable to net wages, totalling 12.7 billion euros. The cost of taxes and levies on salaries reached €4.7 billion, corresponding to a share of 23.6%, while €2.5 billion was attributable to levies on salaries, corresponding to a share of 12.5%.

Personnel costs accounted for 13.2% of total company expenditure last year.

The average monthly net salary amounted to € 1,028 and was therefore 10.4% higher in nominal terms than in 2022. The average monthly gross salary per employee charged to the employer was €1,409, while the average monthly gross salary per employee charged to the employee was € 1,611.

2.4 billion for reimbursements, gifts and support for employees and benefits in kind

In addition to the personnel costs associated with the regular remuneration of employees, labour costs also include expenses for gross author’s fees and contracts for persons not performing a registered activity, expenses for work performed by student unions, costs for temporary workers, remuneration for board members as well as reimbursements, gifts and support for employees and benefits in kind.

Last year, companies reported these costs totalling € 3 billion, of which 79.4% was attributable to reimbursements, gifts and support for employees and benefits in kind, which increased by 22.1% compared to 2022 and totalled € 2.4 billion.

Of this amount, € 78.3 million was attributable to severance payments, which corresponds to an increase of 3% compared to 2022.