Plenković: Average Salary to Reach €1,600 by End of Mandate
In Bol on Brač, the Prime Minister confirmed the government's ambition to raise the average salary to €1,600 by 2028, with a decision on the new minimum wage due in October.
In Bol on Brač, the Prime Minister confirmed the government's ambition to raise the average salary to €1,600 by 2028, with a decision on the new minimum wage due in October.
Prime Minister Andrej Plenković stated on Tuesday that his government's goal is for the average salary in Croatia to rise to €1,600 by the end of its mandate in 2028. He emphasized that this target is realistically set, given that the average salary already exceeds €1,550.
"Our ambition is for the average salary to reach €1,600 by the end of the third mandate. We are already above €1,550, moving toward that goal, and it will be achieved without a doubt, which means we are planning rationally," Plenković told reporters in Bol on the island of Brač, following a ceremonial session of the Municipal Council marking the municipality's day.
The Prime Minister announced that the government will hold consultations with employer and union representatives during October, after which a decision on the new minimum wage amount will be made. Currently, the minimum gross salary stands at €1,050.
Plenković stressed that they have always sought to raise the minimum wage more than any previous government, while also ensuring sustainability for employers in sectors where workers earn the minimum. "We have always tried to raise the minimum wage more than all governments before us, and on the other hand, we took care that it remains sustainable for employers in those sectors where, unfortunately, there are people working for the minimum wage," he said.
To soften the impact of the minimum wage increase on employers, the Prime Minister announced the possibility of compensatory measures. The state would finance this increase through its transfers for a certain period, giving employers enough time to adjust.
"We are ready to introduce compensatory measures, where the state finances the minimum wage increase through its transfers for a period of several months, thus providing enough time for all those affected to be able to finance these wage increases," he explained.
Plenković also reflected on long-term trends, noting that the minimum wage has risen by 134 percent over the past ten years. The average and median salaries have recorded growth of more than 100 percent in the same period.
Commenting on current economic conditions, the Prime Minister expressed satisfaction with the results of this year's tourist season. He emphasized that Croatian tourism has maintained its competitiveness.
"In the first seven months, we are in the plus, the season is better than last year's, which is evident from fiscalization and turnover," Plenković concluded.
