Number of Workers Earning Below Minimum Wage Drops by 67 Percent in a Year
The Ministry of Labor has released data showing that the number of workers receiving pay below the legal minimum fell from nearly 16,000 to just over 5,000.
The Ministry of Labor has released data showing that the number of workers receiving pay below the legal minimum fell from nearly 16,000 to just over 5,000.
Thanks to measures by the Ministry of Labor, Pension System, Family and Social Policy, and the exchange of data between the Tax Administration and the State Inspectorate, the number of workers earning below the legal minimum wage has dropped by 67 percent in just over a year. The Ministry announced this on Thursday, July 31, 2026, highlighting that most irregularities are still recorded in sectors with high demand for labor.
The minimum gross wage in 2026 is €1,050, up from €970 the previous year. According to data presented by the Ministry, in March 2025, as many as 15,993 workers received pay below the prescribed level, while by June 2026, that number had fallen to 5,164.
State Secretary Ivan Vidiš explained that the new mechanism allows institutions to compare data in real time, identify risky employers, and conduct targeted inspections. He stressed that the approach is not primarily punitive. "What matters is that we acted preventively, that employers responded to notifications, and that we created a deterrent effect," Vidiš said for Zadarski list and HRT.
Employers are first warned to correct any identified irregularities, and only if they fail to do so do in-depth inspections and fines follow. "Our goal is not to immediately impose hefty fines but to warn and educate. Penalties come when obligations are consistently not met," Vidiš added.
The Ministry pays special attention to compliance with minimum wages set by extended collective agreements, particularly in construction, where wages are categorized into 11 grades based on job complexity. Most irregularities during the spring and summer months are found in construction and tourism, sectors with high demand for workers.
According to the Ministry, targeted inspections have so far been completed at nine employers, and activities will continue through the summer. In 2025, the State Inspectorate conducted over 11,000 inspection procedures, and the labor inspectorate currently employs around 200 staff.
Minister Alen Ružić stated that the reduction in irregularities "is not just statistics" but a concrete indicator that thousands of workers are receiving wages guaranteed by law and collective agreements. "When institutions function and laws are enforced, these are not just laws on paper but laws that hold in real life," the minister said.
State Secretary Vidiš also noted that the share of workers earning the minimum wage has dropped from 8.2 percent last year to around six percent, a decrease of roughly one-third. Currently, about 74,000 workers receive the minimum wage, which is 35,000 fewer than a year earlier. Vidiš announced that inspections in this group will continue to ensure workers receive all their entitled rights.
