Nearly 70 percent of employees receive below-average wages

Almost 70 percent of employees in Croatia earn less than the average salary, according to participants in a roundtable discussion involving trade unions. The meeting highlighted concerns over wage stagnation, particularly affecting education and scientific sectors, which have been hit hardest by recent pay reforms and new coefficient systems. The findings were presented on Tuesday, with warnings that such trends threaten to drive away skilled workers from the country. According to data from April, the average net salary was approximately 1,550 euros. However, nearly 70 percent of workers receive wages below this figure. This disparity raises questions about how Croatia can retain its workforce, especially highly educated individuals, given the current economic conditions. Izabela-Delfa Mišić, an economist from the Independent Croatian Trade Unions, emphasized the challenge of maintaining labor force stability under these circumstances. Sebastijan Troskot from the Rebirth Union pointed out that public services, education, and science have suffered the most from the pay reforms and the new system of coefficients. Despite this, more than 80 percent of those working within this system hold higher education degrees. Matija Kroflin from the Science Union noted that the government has room for increasing all salaries, including through tax relief measures. He cited data showing the filling of local budgets as evidence of potential fiscal capacity. The financial capabilities of the state budget indicate space for raising salaries for all public and state officials whose earnings have been eroded by inflation this year. At the same time, private employers also have room to continue increasing wages, which is essential for preserving personal consumption and economic growth, according to a statement from the Independent Union of Science and Higher Education. Viktor Viljevac from the Faculty of Economics in Zagreb warned that reducing state spending and increasing wages below the rate of inflation slows down the economy. Such policies carry risks, especially if additional external or geopolitical shocks emerge. Participants in the roundtable also criticized the government's approach to collective bargaining, describing it as destructive and setting a negative example for private employers. Collective negotiations often amount to mere formality, leaving workers in a weaker position and limiting their ability to influence their own wages and working conditions. Darko Šeperić from the Association of Independent Unions of Croatia stressed the importance of strong union organization and insistence on collective bargaining. He added that demands for fiscal discipline, deregulation, and austerity are resurfacing both nationally and at the European level. Participants in the roundtable called for urgent action to address the growing gap between average and actual wages. They argued that without meaningful intervention, the risk of losing skilled professionals and further slowing economic progress would increase. Their statements underscored the need for comprehensive policy changes to ensure fair compensation practices across all sectors of the economy.