Croatian employers against minimum wage increase - Association: High costs threaten investments and employment
The Croatian Employers' Association (HUP) has urged the government to keep the minimum wage unchanged for 2026, in order to preserve jobs and curb inflation.
“After record income growth and an explosion in the minimum wage by a full 92% in the last five years, the high cost of labor has forced employers in the manufacturing industry to halt investment and cut jobs,” the association said in a press release.
According to her, further rapid growth in labor costs would directly threaten employment, investment and the competitiveness of the Croatian economy, especially in the manufacturing sector, and would lead to a further increase in inflation.
The association, which represents employers who create nearly 80% of Croatia's Gross Domestic Product, is demanding that the minimum wage increase in 2026 be postponed by one year and that a clear and predictable formula be created that would automatically link annual wage changes to inflation and productivity growth.
The Croatian government usually sets the minimum wage for the following year before the end of October each year. The gross minimum wage for 2025 is set at 970 euros. The Ministry of Labor said in September that the figure will reach 1,250 euros by 2028.
According to the association, due to the rapid increase in labor costs, many companies in the industrial sector operate at the limits of financial survival or with minimal profits. The profitability of Croatian companies is 55% lower than the EU average, while current revenues are not enough for further wage increases and investments in production capacities and technology. This is especially true for companies with many employees that make up the manufacturing industry and employ over 200,000 people.
Private sector investment in Croatia grew by just 0.4% in 2024. The association stressed that without job cuts, the increase in the minimum wage to 1,250 euros over the next three years would not be affordable for 16% of employers, while another 32% would be forced to stop investments vital for survival in the European market. In the manufacturing sector, one in four firms would be forced to close jobs and another 43% would stop investments. According to employers, after the last increase in the minimum wage, about 4,000 jobs were lost.
Tariffs cost global companies over $35 billion - But trade deals are softening the impact on the world economy
Global companies have signaled more than $35 billion in costs from U.S. tariffs as they head into third-quarter earnings reports. However, many are scaling......
Fluctuations in the foreign exchange market - What happened to the major foreign currencies today?
The US dollar, like other major currencies, has fluctuated in value this morning, being bought today at 82.6 lek and being sold at 83.7 lek, a slight......
AI is transforming startups - 70% of founders are increasing spending on new technology
While startups are investing in artificial intelligence tools to increase the speed of development, experts say we need to turn to entrepreneurs to......
Spain seeks to end EU clock change - Prime Minister Sanchez: It has a negative impact on people's health
Spain will try to revive the European bloc's proposal to end the practice of seasonal clock changes, urging Brussels to fulfill its promise. "As you know,......
Air Traffic Controllers Day, Balluku: Thanks to you, our safe travels!
On Air Traffic Controllers Day, Deputy Prime Minister and Minister of Transport Belinda Balluku sent a message of appreciation to them. In a post on social......
"The Venice Commission, essential for justice reform" - Rama: Historic contribution that helped us maintain the "compass" of orientation
The Venice Commission has played an essential role in the implementation of the justice reform and the improvement of the Electoral Code. Present at the......
From the institution's finances to television piracy - AMA reports to parliamentary committees on its 2024 activities
The Audiovisual Media Authority has reported to the Committee on Human Rights and Public Information Means and the Committee on Civic Initiatives on its......
Lending to individuals is tightened - The effects of the restrictions imposed in July of this year by the Bank of Albania are starting to take effect
Commercial banks have been hesitant to provide loans to citizens during the third quarter of the year. According to the Bank of Albania's lending activity......
