The average salary in Croatia is one of the indicators of economic development, inequality and well-being of the population. The question of the amount of salary is still a taboo topic in Croatia, but that is why the data of the Croatian National Statistical Institute is freely available.
If you are not only interested in the average salary in Croatia, but also the available vacancies you can check them out at Štoradiš.hr, and by clicking the button below you can upload your CV to have it analyzed by AI.
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1. Average salary in Croatia
The average salary in Croatia varies depending on several factors such as industry, location, education level, experience, and specific occupation. According to the latest available data (for May 2023), the average net monthly salary in Croatia was 1,133 euros, which is about 1% more compared to the previous month.
If this information does not mean anything to you, it is better to outline it with the fact that the average net salary has returned to the level before the outbreak of high inflation in 2021.
2. Median salary in Croatia
The median salary differs from the average salary in that it is not the average amount of salary paid, but the value below which half of the employees receive a lower salary and the other half a higher salary. The difference between median and average wages indicates that their distribution is not symmetrical, which is usually the case with wages. In Croatia, the median salary for May was 970 euros.
But it is much more important that the median wage grew faster than the average wage during the period of high inflation. In June 2021, it amounted to HRK 5,966, while the average salary was 28.9% higher, i.e. HRK 7,689. Now the average salary is only 16.8% higher than the median salary. From this, it can be concluded that inequality in Croatia has decreased. It is also worth noting that less than 10% of employees in Croatia receive the minimum wage.
3. Where is the average salary growing the most in Croatia?
In Croatia, the highest salaries are usually found in the capital Zagreb and other major cities, where the cost of living is relatively higher compared to smaller cities and rural areas. Industries such as IT, finance, engineering and medicine are known for providing competitive salaries. Compared to 2021, the average salary in IT has grown by as much as 65%.
On the other hand, due to the high demand for workers, jobs in the tourism sector are also experiencing growth, even if they are often jobs that do not require higher education. Lower average wages are usually in agriculture and public services.
4. Average salary: what affects it?
Several factors contribute to variations in the average salary in different sectors and regions of Croatia. The first of them is industry. Certain industries such as finance, technology and healthcare tend to offer higher salaries due to the specific skills and qualifications required in these sectors.
Another factor is location. Cities like Zagreb, Split and Rijeka offer higher average salaries to compensate for the increased cost of living in urban areas.
The third factor is state regulation. Government regulations, including minimum wage laws and tax policies, directly affect average wage levels in a country by affecting the amount of the minimum wage possible, but also the amount of taxes and contributions that must be paid for each employee.
Finally, the fourth factor is the labor market. Jobs that are in high demand, whether due to industry trends or specific skills shortages, often offer more competitive salaries to attract talent. Everyone knows that high salaries in IT are due to high demand, but for the summers of 2023, it happened that salaries for olive pickers also jumped due to high demand for them.
5. Why is it important to understand the average salary in Croatia?
Understanding the average salary in Croatia is important for several reasons. Knowing the average salary helps individuals plan their finances, budget effectively and make informed decisions about larger expenses.
Additionally, job seekers can use average salary data to negotiate fair wages based on industry standards and the cost of living. It is also important for the companies themselves to understand the average salary in order to remain competitive in attracting and retaining skilled employees.
Knowing the average wage is important for governments and other legislative institutions to create effective labor policies and regulations that promote fair compensation and economic growth.
6. Average salary and inflation
Data on the growth of the average salary does not tell us enough without also having information on the growth of inflation in Croatia. Food prices in Croatia from the beginning of 2021 to June 2023 increased by 10% compared to the average of all other prices. Regardless of wages, this rise in the cost of living affects more people who spend a higher proportion of their income on food or in other words poorer citizens. Therefore, wage growth should be higher for those who spend more on food to offset the effect of inflation.
In conclusion, the average salary in Croatia only returned to the level of the real average salary from the beginning of 2021 in the summer of 2023. Understanding the dynamics of the average salary in Croatia empowers individuals and organizations to make informed financial decisions.
It is a key factor in personal financial stability, job satisfaction and general economic development of the country. It is essential to follow the latest trends and changes in average salaries for anyone who navigates the labor market or manages a business in Croatia.
If this text made you think it would be sound advice to check out the available vacancies at Štoradiš.hr, and by clicking the button below you can upload your CV to have it analyzed by AI.