As Poslovni Dnevnik writes on the 12th of February, 2020, despite the 8.3 percent rise in the Croatian minimum wage in 2020, Croatia is increasingly sinking the Eurostat rankings that monitor the movement of guaranteed wages across Europe. With a gross minimum wage of 546 euros, Croatia remains better than Hungary and Romania, but most of the newer member states of the European Union have surpassed the country.

The minimum wage is prescribed in 21 of the 27 countries within the European Union and varies significantly from country to country, depending on development, standard of living and social sensitivity.

Minimum wages are expressed in gross amounts and countries with a prescribed minimum can be divided into three groups. In the first group, which includes Croatia, countries with minimum wages go up to 700 euros. Bulgaria is at the forefront with a minimum wage of 312 euros, with Poland being the best, with workers being guaranteed a wage of at least 611 euros, according to tportal.

In the past few years, Poland, the Czech Republic, Slovakia, Estonia and Lithuania have skipped past the Croatian minimum wage.

The Croatian minimum wage is in the middle, but until recently it was at the top of this group. In addition to Poland, the Czech Republic, Slovakia, Estonia and Lithuania have also skipped past Croatia over the last few years.

There are six EU countries in the ''golden group'' with a minimum of between € 700 and € 1,400. On the lower border is Portugal with 741 euros and on the top is Spain with 1050 euros. The only transition country to break into this group is Croatia's nothern neighbour - Slovenia, where the minimum wage has reached 941 euros.

In the third group are six rich countries from the north and west of the European Union, in which the minimum exceeds 1,400 euros. France is at the bottom with 1,539 euros and Luxembourg is in front, with a guaranteed minimum wage of 2142 euros, which is almost twice the average Croatian salary.

Eurostat also monitors the movement of the American minimum wage, which currently stands at the equivalent of 1,119 euros and is close to that of Spain.

The highest minimum wage in the European Union was almost seven times higher than the lowest minimum wage, but the range is smaller when one considers purchasing power. Namely, minimum wages in EU member states with lower price levels become relatively higher when the purchasing power standard (PPS) is expressed, and they are relatively lower in member states with higher price levels.

By eliminating price differences, minimum wages range from 579 euros in Bulgaria to 1705 euros in Luxembourg, which means that the highest minimum is about three times the lowest minimum.

Given that there are differing practices across European countries in setting guaranteed wages, the European Commission has recently launched an initiative to create uniform criteria that would serve to set the statutory minimum wage.

The idea is that it amounts to at least 60 percent of the median salary in a particular country. However, this proposal has encountered resistance in the Scandinavian countries, which are reluctant to administratively fix minimum incomes.

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ZAGREB, December 10, 2018 - Labour and Pension System Minister Marko Pavić said on Monday that the government had made a significant step by increasing the minimum wage, bringing it to 3,000 kuna as take-home pay and that the extra money people on a minimum wage will earn will be additional funds for a decent life. The opposition however, retorted that surviving on 3,000 kuna was a "mission impossible," with the Social Democratic Party (SDP) and Let's Change Croatia party recommending that the net minimum wage be 4,000 kuna.

"The government has decided that the minimum wage in 2019 be increased to 3,000 kuna as the net amount or 3,750 kuna as the gross amount. That increase of 248 kuna is the biggest increase since the institute of the minimum wage was introduced in 2008. Before that, during the term of this government, the minimum wage was increased twice by 5% each time and with the latest amendments to the Law on the Minimum Wage, where we excluded Saturday, Sunday, public holiday and overtime work, there was an additional increase of 3.3%," Minister Pavić said presenting a bill on the minimum wage.

During the incumbent government's term, the minimum wage increased by 504 kuna or 23.9%.

"The minimum wage as of 1 January 2019 will be higher than in nine other EU countries, it already is higher than in Bulgaria, Lithuania, Romania, Latvia and Hungary and as of 1 January we will have a higher minimum wage than in the Czech Republic, Slovakia, Poland and Estonia," Pavić underscored.

The government has sent an important message with the proposed increase and that is that it wants a decent life for its citizens, 37,000 of whom receive the minimum salary. "However, this increase won't be without compensating measures to retain employment in labour intensive industries, primarily the leather, textile, timber and metal industries," he underlined.

Last year already the law defined reliefs on contributions of 50%, which will remain in force next year too.

As of 1 January, subsidies will be available for employers who retain their workers and new measures will be introduced in 2020 for employers who create new jobs, Pavić added.

A minimum wage of 3,000 kuna for a decent life. That's a 'mission impossible'. Slovenia's minimum salary is double that of Croatia's, Ivan Lovrinović (Let's Change Croatia) said. He recalled that his party recommended that the minimum wage be 4,000 kuna as the net amount.

Pavić however said that the government was trying to balance its policy, being aware of the fact that that amount isn't a lot.

Independent MP Vlaho Orepić, objected to the fact that the bill had been put on fast track to which Pavić answered that people on the minimum salary didn't have time to wait.

MP Gordan Maras (SDP) said that any change for the better is good however, SDP too recommends that the minimum salary be 4,000 kuna.

MP Branimir Bunjac (Živi Zid) suggested that Pavić write a book about how to have a decent life earning 3,000 kuna. The book could have several chapters - how to survive with 3,000 kuna if you are single, if you have a family, if you have a loan, if your bank account is blocked, he said.

More news on the minimum wage in Croatia can be found in our Politics section.

ZAGREB, May 1, 2018 - Social Democratic Party (SDP) president Davor Bernardić on Monday wished all Croatian citizens the best on the International Workers' Day, saying the strongest opposition party "has been and will be the biggest protector of workers' rights," and proposing that the minimum wage be raised to 4,000 kuna or 60% of the average wage.

An increase in the minimum wage in Croatia.