Thursday, 16 September 2021

Minister Aladrović: 50,000 More Pension Contribution Payers Now Than Last Year

ZAGREB, 16 Sept 2021 - Labour Minister Josip Aladrović informed the parliament on Thursday that despite all the challenges, Croatia had registered roughly 50,000 more pension insurees at the end of August than a year before and also 9,000 more than at the end of August 2019.

Minister Aladrović underscored these figures while presenting the draft amendments to the minimum wage legislation, which were supported by lawmakers.

The draft amendments envisage the stipulation of the gross minimum wage and also fines for employers who pay wages lower than the defined minimum wage.

Commenting on trends in gross minimum monthly payments, the minister noted that at the end of 2013, the gross minimum pay was HRK 2,984 and it rose to HRK 3,120 at the end of 2016,  which meant that during the term of the Social Democratic Party (SDP) government it rose only by 4.5% or by 135 kuna.

During the term of this government, it increased from HRK 3,120 to 4,250 or by HRK 1,130, he said.

The net minimum pay rose from HRK 2,496 to HRK 3,400 or by 904 kuna that is by 36.2%, he stressed and added that this June the average net monthly wage was HRK 7,175.

Aladrović said that the growth in the minimum wage was evident, however, some shortcomings had been spotted and the draft amendments were aimed at correcting them.

Parliamentary deputies welcomed the proposed changes, and some of them warned that there were still some employers who paid only the gross minimum pay, while they gave the difference to a higher earned pay directly to workers or they denied the right of employees to free days.

(€1 = HRK 7.470695)

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