The debate over the minimum wage is once again in the spotlight.

While trade unions are demanding that the lowest wage rise to 1,130 euros, and employers warn that this could jeopardize thousands of jobs, the Government is announcing a compromise decision. Labor Minister Marin Piletić said in a guest appearance on HRT that on Friday the Government will make a decision under which the minimum wage, from the beginning of 2026, will amount to 1,050 euros. This means an increase of just over eight percent compared to the current 970 euros.

Piletić recalled that Croatia, since the beginning of this Government’s term, has almost doubled the minimum wage, from 414 euros to today’s 970 euros. He emphasized that the economy itself deserves credit for such growth, while the state, through reforms and wage increases in the public sector, has additionally contributed to improving living standards. “The minimum wage must enable a dignified life. We cannot allow someone to work an entire month and still be unable to survive on their salary,” the minister said.

In the conversation, he also referred to European standards according to which the minimum wage should amount to at least half of the average gross wage, or 60 percent of the median wage. In that context, the Croatian minimum wage, even after the increase, remains somewhat below the average of the developed member states of the European Union. The minister pointed out that the Government allocates around 150 million euros each year for active employment policy measures that encourage training, retraining, and additional professional development for workers. In this way, he says, they want to ensure that the Croatian worker is competitive and that wage growth follows real productivity growth.