Key Points
- A new minimum wage of HRK 4,250 per month applies to foreign workers nationwide
- The new wage levels affect EU nationals and most Stay and Work Permit applications
- EU Blue Card and Key Personnel routes are subject to different salary thresholds
- EU ICT Permit applicants and posted workers should be compensated at equal wages to local workers
- Employers must compensate foreign workers in HRK
- The new minimum wages apply to current, pending, and new applications
- Benefits and allowances do not count towards minimum wage calculations
Overview
The Croatian government has announced new minimum wage levels of HRK 4,250 per month in 2021.
What are the Changes?
Nationwide, the minimum wage in Croatia will increase by 4.6%.
Who is Affected?
The new minimum wage levels apply to EU nationals and most Stay and Work Permit applications, with the exception of applicants in the EU Blue Card and Key Personnel routes. EU Intra-Company Transferee Permit applicants should receive a salary comparable to the market salary rate for locally hired employees in a similar position.
Posted workers should be compensated at wage levels equal to the wage levels earned by local workers in accordance with Croatian laws for collective bargaining agreements if those rates are more favorable than wages under the worker's employment agreement.
What Should Employers and Applicants Know?
Employers must adjust their employees' salaries, if necessary, to meet the new minimum wage requirements for 2021. The change applies to current, new, and pending applications.
Benefits and allowances are not permitted in minimum salary calculations.
Employees must be compensated in HRK, regardless of the exchange rate and their location.
Originally published January 28, 2021
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
