The President of the Economic and Social Council (GSV), Kresimir Sever, was a guest on N1 TV's morning programme "Novi dan" with Tihomir Ladisic to talk about the recently announced increase in the minimum wage.

Prime Minister Andrej Plenkovic recently stated that the gross minimum wage will rise to €970 from 1 January, but Sever emphasised that this issue was not discussed in the meetings of the GSV.

Minimum wage is not enough for a decent life

Sever explained that the minimum wage is rarely discussed in GSC meetings, as a special working group deals with this issue. He emphasised that the proposed amount is too low: “It is just over €700 net, and it is clear that this is not enough. That is certainly not enough for a decent life.”

He also recalled the European recommendations that the minimum wage should not be less than 50% of the average wage and 60% of the median wage.

Sever added that while wages have risen faster than inflation under Prime Minister Plenkovic’s government, this has not had the same impact for everyone. “These percentages look good on paper, but there is more to it than that. Inflation does not affect everyone in the same way,” said Sever, pointing out that prices have also risen.

“We have slipped into a system of lower-paid jobs”

Sever also addressed the employment structure, noting that the state employs a large number of people who earn the minimum wage.

“A colleague told me that about 70% of Croatian Post employees earn a net salary between €840 and €870, and then we wonder why there are no postal workers and why delivery is delayed. Who would want to do this job?”

“We have slipped into a system of low-paid jobs, which leads to high employment, but because of the pressure of low wages and job insecurity, many people, especially young people, have emigrated from Croatia,” he added.

Sever expressed his hope that young people will be offered sustainable housing so that they can afford to stay in Croatia and that local businesses will create jobs.

He also referred to Finance Minister Marko Primorac’s statement on rising food prices, reminding that Primorac had said: “I’ve explained everything I have to say on this matter. Don’t expect me to comment on the prices of pork, cherries, or other market products. That’s for the relevant institutions to handle.”

“I would interpret his statement as an acknowledgement of the high prices,” Sever concluded.