According to data from the Independent Croatian Trade Unions, the Croatian worker is not too expensive but systematically underpaid.

The Independent Croatian Trade Unions state that claims about "high labor costs" are not only inaccurate, but also harmful, because they conceal the real reasons for economic problems and create the impression that workers are hindering development.

As Eurostat data show, the hourly labor cost in Croatia amounts to 16.5 euros, while the European Union average rises to 33.5 euros. In Austria, an hour of work costs 44.5 euros, in Germany 43.4 euros, in Ireland 42.5 euros, and in Belgium as much as 48.2 euros. The Croatian worker, union representatives conclude, is twice as cheap as the average European worker and almost three times cheaper than the Austrian one.

The union points out that it is often repeated in the domestic public sphere that wages and labor costs in Croatia are growing faster than in the rest of Europe, but these figures only make sense when placed in context. In the second quarter of 2025, labor costs in Austria grew by 3.8 percent, which on a base of 44.5 euros means 1.69 euros more per hour. Croatia recorded growth of 9.2 percent, but on a base of only 16.5 euros, which amounts to just 1.51 euros. It turns out that the Austrian worker, despite the lower percentage, receives a higher actual raise. As emphasized by the NHS, percentages do not pay bills or fill wallets; what matters is the final figure on the payslip.

Union representatives also warn of the paradox of everyday life in Croatia: the prices of food, fuel, and basic living costs are almost the same as those in Germany or Austria, but average wages remain half as high. This means that Croatian workers, despite lower incomes, live in a more expensive reality, because they cover costs similar to those in wealthier European countries with smaller wages. Such a situation leads to insecurity and the departure of the workforce, which weakens the economy in the long term.

The Independent Croatian Trade Unions add that countries with higher wages did not reach that standard by cutting labor costs, but through investments in technology, innovation, and education. In Croatia, however, some employers still try to achieve savings by reducing workers' rights or keeping wages low, instead of modernizing. The unions therefore emphasize that the era of cheap labor must end and that the worker must become a key resource, not a burden on companies.

If we want to keep people in the country, raise the standard of living, and become a competitive economy, union representatives say, it is necessary to systematically raise gross wages, invest in technological progress, and establish a fairer relationship between labor and capital. The knowledge, effort, and experience of workers are the foundation of every economic stability, without which there can be neither profit nor economic growth.

According to Eurostat data, the Croatian worker earns an average of 16.5 euros per hour of work. In Austria, that amount is almost three times higher and reaches 44.5 euros, while in Germany it amounts to 43.4 euros. Ireland records an average of 42.5 euros per hour, and Belgium, with 48.2 euros, has one of the highest labor costs in the European Union. Compared with the EU average, which amounts to 33.5 euros, Croatia, with a little more than half that amount, still lags behind.

In other words, for the same amount of work, a Croatian employee earns almost twice less than the average EU citizen and three times less than a colleague in countries comparable in terms of living standards. When similar consumer basket prices are also taken into account, the difference in living standards becomes even more pronounced, which explains why many workers seek opportunities abroad.

Although Croatia has recorded stable wage growth in recent years, that growth still does not make up for the historical gap between the developed economies of Western Europe and the newer members of the Union. The key, as the unions point out, is not in reducing labor costs, but in increasing productivity, modernizing industry, and creating conditions in which work will remain valued and adequately paid.