More Croats Slipping into In-Work Poverty
Average retail wage stands at €1,180, 18.5 percent below the national average, with unions warning of a growing gap between work and a decent standard of living.
Average retail wage stands at €1,180, 18.5 percent below the national average, with unions warning of a growing gap between work and a decent standard of living.
The face of poverty in Croatia is increasingly that of a full-time shop assistant, a nurse pulling night shifts, or a family with two working parents counting every euro until the next paycheck. The phenomenon known as in-work poverty describes a situation where a steady job no longer guarantees the ability to pay bills or fill a shopping cart.
Four interviewees, from union circles, charitable organizations, and associations dealing with homelessness, confirm the same trend: a steadily growing number of people who, despite being employed, fail to achieve financial stability.
The most direct consequences of the gap between having a job and living decently are felt by those employed in the retail sector. According to data from Fina, the average net salary in retail during 2025 reached €1,180, yet it remains a full 18.5 percent below the Croatian economic average.
Zlatica Štulić, president of the Croatian Trade Union of Retail Workers, points out that workers are struggling with an increasing workload and a chronic staff shortage.
"Retail workers are taking on more and more responsibilities every day due to a chronic lack of staff, but also because of the expansion of services that retailers offer. They often perform additional tasks, which increases the burden and stress," Štulić told Novi list.
Adding to the difficulty are the non-taxable allowances paid by employers: they currently benefit the worker, but the lack of contributions to the pension system reduces their future retirement income in the long run.
"In the last three years, the minimum wage has grown faster than wages for more complex jobs, which has led to a convergence of pay for simpler jobs and part of the pay for more demanding positions," Štulić emphasized.
The staff shortage is also changing the very organization of the working day.
"Working hours often change from day to day, and workers are available to employers almost 24 hours a day through various communication channels. This significantly affects their ability to rest and the quality of their private lives," Štulić warned.
Because of all this, retail is increasingly seen by young people not as a permanent career choice, but rather as a temporary stopgap "until they find something better." Since women make up more than 70 percent of retail employees, it is they who, in addition to lower pay, most often face mobbing and difficulties in balancing professional and family obligations.
"Workers often experience unpleasant situations because customers expect speed and services that are not always possible due to a lack of time or staff," Štulić noted.
As one of the few positive developments, she highlights the amendments to the Trade Act, which have given workers more free Sundays and holidays.
Stjepan Topolnjak, president of the Independent Union of Health and Social Care Workers of Croatia, describes similar problems. He emphasizes that the situation is not uniform, as earnings vary significantly depending on the job and conditions.
"Hospital employees who work shifts, on call, and at night have different salary calculations than workers in primary health care, health centers, polyclinics, or pharmacies," Topolnjak told Novi list.
Those in the worst position are employees in jobs of the lowest formal complexity: support staff, workers in hospital kitchens, laundries, and maintenance. Their earnings are often only slightly above the minimum wage.
"These workers are among the most vulnerable because they face rising living costs, and their earnings do not keep pace with real needs. These are the people without whom health and social care institutions cannot function," Topolnjak stated clearly.
The staff shortage further worsens the situation. Tasks once performed by two or three people are now often taken on by a single person.
"As a result, the workload is increasing, workplace injuries are more frequent, and consequently, the number of sick leaves is rising," Topolnjak noted.
Institutions find it hardest to recruit workers in Zagreb, Istria, the Littoral, and Dalmatia-regions where people more easily find better-paid jobs in tourism and hospitality. This applies to a whole range of occupations, from cleaners and laundry workers to kitchen assistants and cooks.
Topolnjak believes the response must come from the highest level.
"The government must finally recognize why there is such a large labor deficit in health and social care. The main reasons are low wages and difficult working conditions. Without a change in pay policy, the consequences will ultimately be felt by patients and social care users themselves," he urged.
That in-work poverty is not just a theoretical concept is confirmed by Elza Parlov, a social worker with a master's degree from Caritas of the Archdiocese of Zagreb. Among the recipients of their aid, there are more and more employed individuals and entire families who, despite regular incomes, cannot cover basic expenses.
"High housing, energy, and food costs are driving people into situations where, even though they work, they need help to live with dignity," Parlov told Novi list.
Single parents, the elderly, and families with multiple children are particularly vulnerable. Behind a request for a food package, Parlov explains, there are often deeper layers of problems: chronic stress, family crises, strained relationships, or a sense of helplessness.
"We are increasingly encountering people who are not necessarily asking for food or clothing, but primarily for conversation and a sense that someone hears them, which shows the weakening of traditional support networks in society," Parlov explained.
While family, neighborhood, and the local community were once stronger pillars of support, today many in difficulty are left completely alone.
"Help cannot be only material. What is needed is conversation, support, understanding, and restoring a sense of dignity and belonging to the community," Parlov said.
Zvonko Mlinar, executive president of the Croatian Homeless Network, testifies to a radical change in the profile of homeless people over the past decade. After the 2008 crisis, there were many able-bodied people among the homeless who had lost their jobs, but today the situation is different.
"In the last three years, there have been almost no able-bodied people among the homeless, unless they are individuals with severe addictions," Mlinar explained to Novi list.
Increasingly, elderly people and pensioners who formally have a roof over their heads but can no longer cover basic living costs are at risk of homelessness. Pensions are not keeping up with rising prices, especially food and housing. The consequences are visible at the Day Center for Help and Support for the Homeless, where people with an address but without the means to pay for electricity or heating are increasingly coming.
Mlinar emphasizes that losing one's home is not solely a matter of personal circumstances.
"Homelessness cannot be explained only by individual problems. Structural deficiencies play an equally important role-that is, society's insufficient care for the accommodation and reintegration of people who lose their homes," he stressed.
The system's capacity is currently limited to just 450 beds in shelters and overnight facilities, while it is estimated that at least 2,000 people in Croatia live without organized accommodation.
