Minimum Wage in 2026: What Employers Need to Know

The Croatian minimum wage will increase again in 2026, bringing higher payroll costs and new considerations for employers. Understanding the new amount, its impact on total employment costs, and the applicable rules is essential for accurate payroll planning and compliance.

New Minimum Wage Amount for 2026

As of 1 January 2026, the gross minimum wage in Croatia will amount to EUR 1,050.00.

This represents an 8.2% increase compared to the minimum wage in 2025. The January minimum wage is paid in February, in line with standard payroll practice.

It is also worth noting that over the past five years, the minimum wage has increased by 86.1%, reflecting a strong upward trend in labor costs.

Total Cost for Employers

The minimum wage does not only affect the gross salary paid to employees. Employers must also account for mandatory social contributions.

On top of the gross minimum wage of EUR 1,050.00, employers are required to pay a 16.5% health insurance contribution.

As a result:

• The total monthly cost per employee amounts to EUR 1,223.25
• The total annual cost reaches EUR 14,679.00

These figures highlight the importance of timely budgeting and payroll adjustments ahead of 2026

Additional Points Employers Should Consider

Several important rules continue to apply alongside the new minimum wage:

• In certain sectors, higher minimum amounts may apply based on collective bargaining agreements (for example, in construction).
• Managing directors of companies are subject to a separately prescribed minimum contribution base.
• Non-taxable benefits such as Christmas bonuses, transportation allowances, and meal allowances do not count toward the minimum wage and cannot be used to offset it.

Preparing for the 2026 Payroll Changes

Given the continued growth in minimum wage levels, employers should review their payroll structures, employment contracts, and cost projections well in advance. Proper preparation helps avoid compliance risks and ensures smooth implementation once the new wage level takes effect.

Professional support can be particularly valuable when adjusting payroll calculations, aligning internal policies, and ensuring accurate reporting.

Need Support with Payroll Calculations?

If you need assistance with payroll calculations, advisory support, or adapting your payment structures to the new minimum wage requirements, timely expert guidance can make the transition significantly easier.