Life satisfaction
Data source: 2016 EQLS survey
Ability to choose or change
methods of work
Data source: 2015 EWCS survey
Possibility to accumulate overtime
for days off
Data source: 2013 ECS survey
Gníomhaireacht thríthaobhach an AE a chuireann eolas ar fáil le cuidiú le beartais sóisialta agus beartais a bhaineann leis an obair a fhorbairt
Gníomhaireacht thríthaobhach an AE a chuireann eolas ar fáil le cuidiú le beartais sóisialta agus beartais a bhaineann leis an obair a fhorbairt
07 Márta 2023
Data source: Eurostat
Eurofound provides research, data and analysis on a wide range of social and work-related topics. This information is largely comparative, but also offers country-specific information for each of the EU Member States, which included the UK prior to its withdrawal from the European Union on 31 January 2020. Most information is available in English but some has been translated to facilitate access at national level.
Eurofound strives to strengthen the ongoing link between its own work and national policy debates and priorities related to quality of life and work. Increasingly important in this context are the EU’s policy priorities for a European Green Deal, a digital future, an economy that works for people, promoting and strengthening European democracy. To help repair the economic and social damage caused by the COVID-19 pandemic, the European Commission, the European Parliament and EU leaders have also agreed on a recovery plan that will lead the way out of the crisis and lay the foundations for a modern and more sustainable Europe. The EU’s long-term budget, coupled with NextGenerationEU, the temporary instrument designed to boost the recovery, will be the largest stimulus package ever financed through the EU budget to help rebuild a post-COVID-19 Europe.
The European Semester provides a framework for the coordination of economic policies across the EU. It allows Member States to discuss their economic and budget plans and monitor progress at specific times throughout the year. For 2022, the European Semester resumes it broad economic and employment policy coordination, while further adapting in line with the implementation requirements of the Recovery and Resilience Facility. As part of this, Member States are encouraged to submit national reform programmes and stability/convergence programmes that will set out their economic and fiscal policy plans, as in previous Semester cycles. The main change in the 2022 cycle will be that the national reform programme will play a dual role. Besides its role for the European Semester, it will also fulfil one of the two bi-annual reporting requirements of Member States under the Recovery and Resilience Facility.
2015 Eurofound EWCS survey results in Croatia: 29% of people don’t receive the recognition they deserve for their work
COVID-19 continues to have a profound impact on people’s lives across the globe, with major implications for quality of life and work. Eurofound has taken a multipronged response to the pandemic, adapting its research focus in a variety of ways. A new database of national-level policy responses, EU PolicyWatch, collates information on measures taken by government and social partners, as well as company practices, aiming to cushion the effects of the crisis. Eurofound's unique e-survey, Living, working and COVID-19, provides an insight into the impact of the pandemic on people’s lives across the EU, with the aim of helping policymakers to bring about an equal recovery from the crisis. Five rounds of the survey have been carried out to date: in April 2020 when most Member States were in lockdown, in July 2020 when society and economies were slowly reopening, in March 2021 as countries dealt again with various levels of lockdown and vaccine rollout, a panel survey in October/November 2021 to track developments since the start of the pandemic, and in March–May 2022, charting the latest developments and looking at how life has changed over the past two years. The survey investigates the impact on quality of life and society, democracy and trust, working and teleworking, the financial situation and security of people, the quality of public services, support measures and vaccinations during COVID-19. Findings for each country and a range of data pages are available.
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Survey results
Life satisfaction
Data source: 2016 EQLS survey
Ability to choose or change
methods of work
Data source: 2015 EWCS survey
Possibility to accumulate overtime
for days off
Data source: 2013 ECS survey
Recent developments
Eurofound contacts in Croatia
Correspondents report on topics related to developments in the country's working life and inform Eurofound’s pan-European comparative analysis. Read more
University of Split, Faculty of Economics, Business and Tourism
Eurofound's Management Board is made up of representatives of the social partners and national governments of all Member States, European Commission representatives and an independent expert appointed by the European Parliament. Read more
Vatroslav Subotić Ministry of Labour and Pension System
Biserka Sladović Croatian Employers’ Association (CEA)
Marija Hanzevacki Independent Trade Unions of Croatia (NHS)
Quality of life
EQLS findings show that both life satisfaction and happiness are slightly below the EU28 average in Croatia. Life satisfaction was 6.3 in 2016 compared with the EU28 average of 7.1, and happiness was 6.8 versus the EU28 average of 7.4 (on a scale of 1–10). Optimism about one’s own future stood at 55% in 2016, which was also slightly lower than the EU28 average of 64%.
However, 58% of respondents in Croatia were optimistic about their children’s or grandchildren’s future in 2016, which was almost level with the EU28 average of 57%. Self-reported health in Croatia is also at the same level as the EU28 average, with 24% of respondents in Croatia reporting ‘very good health’ in 2016, matching the EU average.
Difficulties in making ends meet have increased in Croatia in recent years. In 2007, 58% of respondents reported difficulties in making ends meet, whereas in 2016 this share was 71%. This is also higher than the EU28 average of 39% in 2016.
2003 | 2007 | 2011 | 2016 | ||
Life satisfaction | Mean (1-10) | 6.4 | 6.8 | 6.3 | |
Taking all things together on a scale of 1 to 10, how happy would you say you are? | Mean (1-10) | 7.0 | 7.3 | 6.8 | |
Optimism about own future | Agree & strongly agree | - | - | 55% | |
Optimism about children’s or grandchildren’s future | Agree & strongly agree | - | - | 58% | |
Take part in sports or physical exercise | At least once a week | - | 27% | 18% | |
In general, how is your health? | Very good | 29% | 36% | 24% | |
WHO-5 mental wellbeing index | Mean (1-100) | 56 | 62 | 57 | |
Making ends meet | With some difficulty, difficulty, and great difficulty | 58% | 63% | 71% | |
I feel I am free to decide how to live my life | Strongly agree | - | 37% | 19% | |
I find it difficult to deal with important problems that come up in my life | Agree & strongly agree | - | - | 25% | |
When things go wrong in my life, it generally takes me a long time to get back to normal | Agree & strongly agree | - | - | 23% |
Work-life balance
Based on the EQLS, work–life balance is relatively low in Croatia in comparison to the EU28 average. Out of all Member States, Croatia has the highest share of people experiencing all three work–life balance problems ‘at least several times a month’, as shown below. In 2016, 81% of respondents in Croatia have come home ‘too tired from work to do some of the household jobs which need to be done’ at least several times a month, compared with a much lower EU28 average of 59%. Moreover, 69% of respondents in Croatia said ‘it has been difficult to fulfil family responsibilities because of work’ at least several times a month, again much lower than the EU28 average of 38%. The proportion of those reporting they found it ‘difficult to concentrate at work because of family responsibilities’ at least several times a month reached 52% in Croatia, compared to the respective EU28 average of 19%.
2003 | 2007 | 2011 | 2016 | ||
(At least several times a month) | |||||
I have come home from work too tired to do some of the household jobs which need to be done | Total | 73% | 73% | 81% | |
Men | 74% | 74% | 79% | ||
Women | 72% | 72% | 83% | ||
It has been difficult for me to fulfil my family responsibilities because of the amount of time I spend on the job | Total | 53% | 56% | 69% | |
Men | 50% | 57% | 71% | ||
Women | 57% | 54% | 67% | ||
I have found it difficult to concentrate at work because of my family responsibilities | Total | 23% | 19% | 52% | |
Men | 21% | 19% | 54% | ||
Women | 26% | 20% | 50% |
Quality of society
Perceived tensions between poor and rich have decreased in Croatia in recent years. In 2007, 53% of people reported a lot of tension between poor and rich, but in 2016 this share dropped to 35%, closer to the EU average of 29%. Additionally, perceived tensions between different racial and ethnic groups have remained fairly stable, at 33% of the respondents reporting a lot of tension in 2007 and 30% in 2016. This is below the EU28 average of 41% in 2016.
Only 4% of respondents were involved in unpaid voluntary work at least once a month in Croatia in 2016, one of the lowest shares in the EU28 (Bulgaria has the lowest share of only 2% in 2016). Furthermore, trust in people is relatively low in Croatia in comparison to the EU28 average. On a scale of 1–10, the mean trust score in Croatia was 3.8 in 2016, which is close to Cyprus with the lowest mean trust score of 3.0 and below the EU28 average of 5.2.
2003 | 2007 | 2011 | 2016 | ||
Social exclusion index | Mean (1-5) | 2.5 | 2.4 | 2.3 | |
Trust in people | Mean (1-10) | 4.6 | 4.6 | 3.8 | |
Involvement in unpaid voluntary work | % "at least once a month" | - | 8% | 4% | |
Tension between poor and rich people | % reporting 'a lot of tension' | 53% | 61% | 35% | |
Tension between different racial and ethnic groups | % reporting 'a lot of tension' | 33% | 33% | 30% | |
I feel safe when I walk alone after dark | Strongly agree | - | - | 33% |
Quality of public services
Quality ratings for seven public services
Note: scale of 1-10, Source: EQLS 2016.
The perceived quality of health services has increased from 5.0 to 6.0 between 2007 and 2016 (on a scale of 1–10). Despite some improvement, this is still below the EU28 average of 6.7 in 2016. Many other indicators of the quality of public services also show positive development in Croatia. For instance, the perceived quality of the state pension system increased from 3.4 in 2007 to 4.5 (out of 10) in 2016. This implies that even though the perceived quality of public services is on average lower in Croatia than in the EU28, it is moving towards the EU average.
2003 | 2007 | 2011 | 2016 | ||
Health services | Mean (1-10) | 5.0 | 5.4 | 6.0 | |
Education system | Mean (1-10) | 5.9 | 6.0 | 6.1 | |
Public transport | Mean (1-10) | 5.6 | 5.8 | 5.9 | |
Childcare services | Mean (1-10) | 5.5 | 6.1 | 6.2 | |
Long-term care services | Mean (1-10) | - | 5.2 | 5.8 | |
Social housing | Mean (1-10) | - | 4.3 | 5.0 | |
State pension system | Mean (1-10) | 3.4 | 3.8 | 4.5 |
This profile describes the key characteristics of working life in Croatia. It aims to complement other EurWORK research by providing the relevant background information on the structures, institutions and relevant regulations regarding working life. This includes indicators, data and regulatory systems on the following aspects: actors and institutions, collective and individual employment relations, health and well-being, pay, working time, skills and training, and equality and non-discrimination at work. The profiles are updated annually.
Highlights – Working life in 2021
Authors: Predrag Bejaković, Irena Klemenčić
Institution: Institute of Public Finance; Faculty of Law, University of Zagreb
Highlights updated on: 19 May 2022
Working paper: Croatia: Working life in the COVID-19 pandemic 2021
Despite the COVID-19 pandemic, the economy recorded a significant increase in its GDP, particularly in the second quarter of 2021. This was mainly due to the rise in personal consumption and in the exports of goods and services. This has triggered a substantial decline in the numbers of unemployed people, with unemployment decreasing by almost 20% in October 2021 compared to one year earlier.
The government introduced specific support measures to lessen the consequences of both the COVID-19 pandemic and the 2020–2021 earthquakes, primarily by extending COVID-related fiscal measures into 2021. The crucial measures (costing an estimated 8% of GDP) include the ‘Support for preservation of jobs in sectors affected by coronavirus’ and ‘Co-financing of wages for reduced working hours’. For all measures, there are no official data on the number of jobs saved in the short and medium term (with workers returning to exactly the same employment situation), nor on the number of companies saved. However, the views of the social partners on the measures were positive and they believed that the implementation of measures was successful in preventing numerous bankruptcies and an increase in unemployment.
Although the government expressed its commitment to reforms and investments envisaged by the National Recovery and Resilience Plan, as well as to the reconstruction of earthquake-struck areas, activities have not yet started.
Platform work has been expanding rapidly in Croatia, particularly in relation to delivery and transport. As in many countries, a serious problem is the lack of health insurance among people doing platform work, particularly if they are self-employed. However, in Croatia, the self-employed have the same entitlements to healthcare as other citizens, and similarly (except for children under the age of 18 and people suffering from certain diseases) they are subject to compulsory co-payments. The position of platform workers in Croatia should improve soon as the Digital Platform Workers’ Union of Croatia (affiliated to the Union of the Autonomous Trade Union of Croatia) was founded in June 2021.
To prevent the spread of the infection, the National Civil Protection Headquarters states it is necessary to act on three fronts: to achieve a high vaccination rate, to limit gatherings and to ensure the safest possible conditions when conducting business that cannot be restricted. As in 2020, a significant number of activities – particularly in education – have been successfully moved online during the crisis.
Key figures
Comparative figures on working life in Croatia
2019 |
2020 |
% (point) change 2012 –2019 |
% (point) change 2019 –2020 |
|||||
---|---|---|---|---|---|---|---|---|
Croatia |
EU27 |
Croatia |
EU27 |
Croatia |
EU27 |
Croatia |
EU27 |
|
GDP per capita |
12,450 |
27,970 |
11,500 |
26,230 |
20.8% |
11.5% |
-7.6% |
-6.2% |
Unemployment rate – total |
6.6 |
6.7 |
7.5 |
7.1 |
-9.4 |
-4.1 |
0.9 |
0.4 |
Unemployment rate – women |
7.2 |
7 |
7.6 |
7.3 |
-8.9 |
-4.0 |
0.4 |
0.3 |
Unemployment rate – men |
6.2 |
6.4 |
7.5 |
6.8 |
-9.8 |
-4.3 |
1.3 |
0.4 |
Unemployment rate – youth |
16.6 |
15 |
21.1 |
16.8 |
-25.5 |
-8.7 |
4.5 |
1.8 |
Employment rate – total |
66.5 |
73.4 |
67.1 |
72.9 |
2.6 |
2.4 |
0.6 |
-0.5 |
Employment rate – women |
61.6 |
67.9 |
61.6 |
67.5 |
3.6 |
3.0 |
0.0 |
-0.4 |
Employment rate – men |
71.5 |
79 |
72.6 |
78.3 |
1.7 |
1.8 |
1.1 |
-0.7 |
Employment rate – youth |
33.2 |
39.4 |
32.5 |
37.9 |
3.1 |
-0.4 |
-0.7 |
-1.5 |
Source: Eurostat – Real GDP per capita (chain linked volumes [2010], in EUR) and percentage change 2012–2020 (both based on sdg_08_10). Unemployment rate by sex and age – annual average (15–74 years, % active population) and youth (15–24 years) % [une_rt_a]; Employment rate by sex and age – annual average (15–64 years, unit % total population, employment indicator active population) % [lfsi_emp_a].
Background
Between 2012 and 2019, GDP grew by 20.9% in Croatia, above the EU average of 11.5% for the same period. Total unemployment between 2012 and 2019 decreased significantly and, at 6.6% in 2019, remains similar to the EU average of 6.7% for that year. Youth unemployment decreased by 25.5 pp in the seven years considered and employment figures for this category increased by 3.1 pp during this period. Women employment rates also improved and reached 61.6% in 2019. In 2020, due to the pandemic, unemployment rates increased, most significantly for youth – by 4.5 pp reaching 21.1%.
More information on:
On 15 July 2014, the Croatian Parliament adopted the new Labour Act (OG 93/14). The Act aims to increase the number of employed people, create a legal framework, which enables the employers to develop more flexible business models and to adapt to market demands, while maintaining employee protection. Some smaller amendments of the Act were passed in 2017 and 2019 (OG 127/17, 98/19) and related mostly to the rights of workers’ representatives.
Regarding social partners’ representation, the Act on Representativeness of Employers’ Associations and Trade Unions was adopted in 2014 (OG 93/14). It stipulates the procedure and criteria for establishing representativeness of higher-level employers' and trade union associations for participation in tripartite bodies on the national level, as well as the procedure and criteria for establishing representativeness of trade unions for collective bargaining. The Act was slightly amended in 2015 (OG 26/15).
Bipartite social dialogue developed at company level, while branch level bipartite negotiations mostly remained underdeveloped. The reasons for inadequate spread of bipartite (especially branch) social dialogue are a generally weak tradition of social dialogue, low coverage of private sector employees with collective agreements, fragmentation of trade unions, unwillingness of the private sector to accept trade unions as partners and inadequate capacities of trade unions and employers’ associations. There is no uniform system of industrial relations in Croatia, and this has created a quite complicated precondition for establishing social partners’ representativeness. The first system of collective bargaining is the system of bargaining for civil and public servants and employees, whose wages are financed from the central budget; the second system is collective bargaining in public enterprises majority-owned by the State; the third system of collective bargaining is seen in units of local and regional self-government and in public enterprises founded by them; the fourth type of collective bargaining is encountered in the private sector which has a tradition and a system of sectoral collective agreements; while the fifth pattern of collective bargaining consists of in-house collective agreements in the private sector. Croatian Employers’ Association (CEA) is the only voluntary association of employers in Croatia that participates in the bodies of tripartite social dialogue. Employers’ organisation density in terms of employees covered in 2013 was 31% (ECS 2013), while by workers’ organisation in 2013 it was 20% by trade unions and 13% by workers’ council (ESC 2013). Šeperić (2017) estimates that the general trade union density rate is around 26%, with a decreasing trend.
Actors and institutions
Trade unions, employers’ organisations and public institutions play a key role in the governance of the employment relationship, working conditions and industrial relations structures. They are interlocking parts in a multilevel system of governance that includes the European, national, sectoral, regional (provincial or local) and company levels. This section looks into the main actors and institutions and their role in Croatia.
The Service for Social Partnership of the Ministry of Labour and Pension System is the successor of the former Government Office for Social Partnership, later incorporated within the Ministry of Labour and Pension System.
The body responsible for social dialogue and working conditions is the Ministry for Labour and Pension System, but for bipartite social dialogue in their field of activities all bodies of state administration are responsible.
The Service for Social Partnership supports a wide range of activities for the advancement of communication between responsible central and local government institutions, social partners and international organisations to help them achieve their joint and efficient effects in the field of labour, social and economic policy. Social partnership has proven to be the stabiliser of social relationships, model of consultation, information and opinion sharing and the key toward wider social consensus on all the relevant issues.
According to the Labour Inspectorate Act (OG 19/14) on force until 31 March 2019, the Labour Inspectorate was operating as a part of the Ministry of Labour and Pension System. Since 1 April 2019, the new Labour Inspectorate Act (OG 115/18) has been on force. The Ministry of Labour and Pension System is responsible for drafting and monitoring regulations on safety at work and suggesting measures and encouraging activities promoting health and safety at work. The Labour Inspection is authorised to initiate administrative procedures and eliminate identified deficiencies, and prohibit employer’s practices that jeopardise the lives and health of the workers.
The Act on the Criteria for Participation in Tripartite Bodies and Representativeness for Collective negotiation (OG 82/12 and 88/12) introduced new criteria for representativeness of the social partners’ organisations for tripartite consultations. For employees, the legislation on representativeness of unions has introduced detailed provisions covering which unions are entitled to conclude collective agreements. The new Act on Representativeness of Employers’ Associations and Trade Unions adopted in 2014 (OG 93/14) and amended in 2015 (OG 26/15) regulates the criteria and procedures for establishing representativeness of employers’ associations and higher-level trade unions for their participation in tripartite bodies at the national level. It also sets out criteria and procedures for the representativeness of trade unions for collective bargaining and the entitlements of representative associations/trade unions.
More information on representativeness of the main social partner organisations can be found in Eurofound’s representativeness study of the cross-industry social partners or in Eurofound’s sectoral representativeness studies.
Freedom of association and the right to organise is set by the Constitution (Article 43 and 60), the Labour Act, ILO Conventions No 98 and 87 and other international treaties to which the Republic of Croatia is a party. All employees, except active military staff, have the right to establish and join trade unions. According to the new Labour Act (OG 93/14, 127/17, 98/19), Article 165, workers have the right, according to their own free choice, to establish and join a trade union, subject to only such requirements which may be prescribed by the statute or internal rules of this trade union.
In Croatia, there are no databases and/or reliable sources on the trade union membership. According to Milićević-Pezelj (2013), there were 320 thousand trade union members in Croatia which means coverage of around 17%. Bagić (2014) assessed the workforce covered by collective agreements per sector using the list of applicable collective agreements registered with the Ministry of Labour and Pension System (collective agreements implemented in two or more counties) and collective agreements registered with state administration offices in counties (collective agreements implemented in one county). Out of 570 collective agreements in application, the majority (about 64%) concern the private sector, while the rest are related to national and local government and services (13%) or public enterprises (23%). The coverage ratio is directly proportional to the number of collective agreements. The biggest bargaining coverage was recorded for employees in administration and public services, followed by public enterprises, while coverage was considerably lower in private companies. About 88% of employees in budget-user bodies (both central and local government) have their rights regulated by collective agreements. The rights of around three quarters of employees in public enterprises are regulated by collective agreements compared to only 35% of employees in private companies. Thus, according to Bagić’s estimation total coverage rate by collective agreements in Croatia in 2013 was 52.8%. The coverage is about eight percentage points lower compared to the beginning of the economic crisis in Croatia in 2009, when it was 61%. According to latest data (Savez samostalnih sindikata Hrvatske, 2018), trade union density in terms of active employees is around 21%, while trade unions which are affiliated to representative trade union federations have 252.000 members.
2015 |
2016 |
2017 |
2018 |
2019 |
Source |
|
Trade union density in terms of active employees |
27.2% |
29.6. |
n.a. |
27.3 |
29.7 |
OECD/AIAS ICTWSS Database 2021 |
Trade union density in terms of active employees |
n.a. |
n.a. |
26%* |
21%** |
n.a. |
Milićević Pezelj, 2013 Šeperić, 2017 Savez samostalnih sindikata Hrvatske, 2018 |
Trade union membership in 1000s |
321 |
n.a. |
313 |
302 |
n.a. |
OECD/AIAS ICTWSS Database 2021 |
Trade union membership in 1000s |
n.a. |
n.a. |
365* |
252** |
n.a. |
Milićević Pezelj, 2013 Šeperić, 2017 Savez samostalnih sindikata Hrvatske, 2018 |
* Slightly changes in methodology
**Only members of trade unions affiliated to representative trade union federations, not included members of Croatian Association of Trade Unions (Hrvatska udruga radnickih sindikata).
Long name |
Abbreviation |
Members |
Involved in collective bargaining? |
Independent Trade Unions of Croatia (Nezavisni hrvatski sindikati) |
NHS/ITUC |
96,870 (2018) |
Yes |
Union of Autonomous Trade Unions of Croatia (Savez samostalnih sindikata Hrvatske) |
SSSH/UATUC |
94,622 (2018) |
Yes |
MATICA Association of Croatian Trade Unions (Matica hrvatskih sindikata) |
Matica |
60,648 (2018) |
Yes |
Croatian Association of Trade Unions (Hrvatska udruga radnickih sindikata) |
HUS |
48,000 (2015) |
No |
Source: Savez samostalnih sindikata Hrvatske (2018), page 28.
With a new Act on Representativeness of Employers’ Associations and Trade Unions from 2014 (OG 93/14, 26/15), the Government wanted the process of representativeness to be based on precise and objective criteria, in order to avoid any possibility of bias or abuse. Regarding trends in membership and representativeness, the public sector’s employees’ share in total membership is on the increase (or at least stable) while membership in trade unions in the private sector is steadily decreasing. The Act on Representativeness of the representativeness of employers’ associations and trade unions (OG 93/14, 26/15) stipulates that a higher-level representative trade union organisation participating in tripartite bodies at national level should fulfil the following conditions in a cumulative manner. First, it must be present in the register of trade union organisations of a higher level at least six months prior to submitting an application for recognition of a representative status. Second, its member trade unions must represent at least 50 000 unionised employees. Third, it has to have at least five trade unions as its members and be active in various areas of activities as set out in the National Classification of Activities. Fourth, the higher-level representative trade union organisation or its member unions must have regional offices in at least four counties (of 21 counties in Croatia). Fifth, it must have the premises and other material conditions necessary to carry out its activities as well as employ at least five employees with a full-time employment contract, concluded for indefinite duration. Until 2018, four representative trade union confederations have been associated with 367 thousand members. All confederations compete for members, since none of them is specialised in particular sectors of the economy or professions (Samardžija et al, 2017). In the summer of 2018, the Committee for the Determinacy of Representation passed the Decision on the representativeness of the higher level of trade union (OG 59/18). According to it, representative unions are: the Independent Trade Unions of Croatia (Nezavisni hrvatski sindikati), the Union of Autonomous Trade Unions of Croatia (Savez samostalnih sindikata Hrvatske), and MATICA − Association of Croatian Trade Unions (Matica hrvatskih sindikata), while the Croatian Association of Workers' Union (Hrvatske udruge radničkih sindikata) lost this status because it did not fulfil legal requirements.
Freedom of association and the right to organise is set by the Constitution (Article 43 and 60), Labour Act, ILO Conventions and other international treaties to which the Republic of Croatia is a party. Employers have the right, without any distinction whatsoever, and which may be according to their own free choice, to establish and join an employers' association. Employers may freely decide on their membership in an association and leaving such association. Associations may create federations or other forms of association in order to pursue their interests together at a higher level. Higher level associations enjoy all the rights and freedoms granted to association. They all have the right to freely join federations. The Act on Representativeness (OG 93/14, 26/15) (Art. 2) defines that a representative employers’ organisation for participation in tripartite bodies at a national level has to have been on the Register of higher-level employers’ associations for at least six months; unite at least 3,000 employers or to have affiliated employers employing at least 100,000 workers; gather at least five employers’ associations operating in different areas; have regional offices in at least four counties; have proper premises as well as other necessary material working conditions; and employ at least five employees full time with permanent employment contracts. Since 1993, there has in fact been only one association of employers, the Croatian Employers' Association – CES ( Hrvatska udruga poslodavaca – HUP), which brings together branch and interest employers’ organisations. HUP has slightly less than 6,000 members, employing around 400,000 workers, which is approximately 46% of employees in companies. The numbers of its members and membership density have been stable over the past 10 years. HUP as an employers' confederation unites 30 branch associations. Membership is not compulsory.
2015 |
2016 |
2017 |
2018 |
2019 |
Source |
|
Employers’ organisation density in terms of active employees |
n.a. |
n.a |
n.a. |
n.a. |
n.a |
OECD/AIAS ICTWSS Database 2021 |
Employers’ organisation density in private sector establishments* |
n.a |
n.a. |
n.a. |
n.a. |
10% |
|
Employers’ organisation density in private sector establishments |
n.a. |
n.a. |
n.a. |
n.a. |
n.a. |
Data obtained by Croatian Employers Association |
* Percentage of employees working in an establishment which is a member of any employer organisation that is involved in collective bargaining.
According to the Decision on Representativeness of Employers' Associations in Croatia, from July 2007 only the Croatian Employers' Association (CEA) fulfilled the required criteria while the Confederation of Croatian industry and entrepreneurs did not. However, the 2014 Act on representativeness stipulates in Article 2 the requirements of employers’ association representativeness. Thus, currently Croatian Employers’ Association (CEA) is the only employers' representative within the national Social-Economic Council, the highest tripartite social body for social dialogue in Croatia. The CEA has four regional offices, while 30 branch associations of CEA advocate for the specific economic interests of different sectors. The CEA is voluntary, independent and legitimate association with the legitimate right to negotiate in the process of collective bargaining and to sign Collective Agreements. The CEAs’ members may also actively participate in all local and/or regional Economic-Social councils in order to improve the conditions of their businesses.
Long name |
Abbreviation |
Members |
Year |
Involved in collective bargaining? |
Croatian Employers Association (Hrvatska Udruga poslodavaca) |
HUP - CEA |
6,000 |
2015 |
Yes |
Source: Croatian Employers Association Program Rada 2016.
Croatia has established an institutional framework for promoting social dialogue, comprising in particular the tripartite Economic Social Council (ESC) and its working bodies, which serves as an advisory body to the Croatian Government. The Croatian ESC started its work in January 1994 and consists of an equal number of representatives of the government, trade union confederations and employer’s associations. The ESC committees deal with the issues of wage policy, tax system, social policy, employment, education and legislation pertinent to the issues of labour, employment and industry. The tripartite social dialogue that began at national level has since progressed to be developed at regional level by the establishment of regional ESCs at each county level, which comprise a 'county ESC'. The criteria for participation in the regional ESC were the same one as adopted for the national ESC. The proposed social partnership at regional level was designed to engage and support the regional business environment by improving communication and cooperation between the government, regional and local administration, business and labour. There are considerable differences in their levels of activity and effectiveness. At the level of companies, institutions and particular branches and industries, bipartite social dialogue is developed through the activities of the trade unions and employers’ associations who conclude collective agreements and facilitate trade union activities in companies, works councils and supervisory boards. In addition, social partners are represented in working bodies within the Croatian Parliament, National Council for protection at work, National Council for Competitiveness, National committee for monitoring the negotiations with EU, governing boards of the Social Insurance Fund and other public institutions. The Economic and Social Council (ESC) on the national level had been inactive for a longer period from its 221 Meeting on 26 June 2018 until 222 Meeting on 27 March 2020. The reasons were some serious disputes between the trade unions and the government about the functioning of the ESC, but also related to its role in the pension reform, which resulted in trade unions’ cancellation of their participation in the ESC. With the intention to revive the Economic and Social Council on the national level, the government and social partners signed on 11 March 2020, an Agreement for establishing the Economic and Social Council. This body represents the highest (institutional) form of tripartite social dialogue at the national level, and it provides an opportunity that social partners have an important and active role in creating and implementing public policies.
Name |
Type |
Level |
Issues covered |
Economic and Social Council (Gospodarsko-socijalno vijeće) |
Tripartite |
National |
Socio-economic issues, including salary policies, employment, pension and health insurance, education, labour market harmonisation and health and safety at work, social security. |
Social council for the textile, footwear, leather and rubber sector (Socijalno vijeće za sektor tekstila, obuća, kože i gume) |
Tripartite |
Sectoral |
Wages, working conditions, economic policy related to the sector. |
Social council for the sector of forestry and wood industry (Socijalno vijeće za sektor šumarstva I drvne industrije) |
Tripartite |
Sectoral |
Wages, working conditions, economic policy related to the sector |
Social council for road transport. (Socijalno vijeće za sektor cestovnog prometa) |
Bipartite |
Sectoral |
Wages, working conditions, economic policy related to the sector |
Social council for the sector of railway transport (Socijalno vijeće za sektor željezničkog prometa) |
Bipartite |
Sectoral |
Wages, working conditions, economic policy related to the sector |
Social council for the sector of building sector (Socijalno vijeće za sektor graditeljstva) |
Bipartite |
Sectoral |
Wages, working conditions, economic policy related to the sector |
Social council for the sector of tourism (Socijalno vijeće za sektor turizma) |
Bipartite |
Sectoral |
Wages, working conditions, economic policy related to the sector |
Social council for the food industry and agriculture (Socijalno vijeće za sektor prehrambene industrije i poljoprivrede) |
Bipartite |
Sectoral |
Wages, working conditions, economic policy related to the sector |
Economic social councils at the county level (21) (Socijalno vijeće na razini županija) |
Tripartite |
At the county level |
Monitor and assess the impact of economic policy and measures of economic and social policy on social stability and development at the county level. |
According to the Labour Act, trade unions are the only actors entitled to conclude collective agreements in the Republic of Croatia on behalf of workers, whereas on the employers’ side a party to a collective agreement can be an individual employer or employers' association. The right to certain agreements with the employer is also given to works council, but those agreements must not regulate matters related to wages, the duration of working time and other issues for which the Labour Act stipulates that they may be regulated by a collective agreement. In that way, apart from the freedom of association and activity, trade unions are ensured collective bargaining monopoly. Works councils in Croatia are relatively rare and they are mostly strongly influenced by trade unions.
Regulation |
Composition |
Competences of the body Involved in company level collective bargaining? |
Thresholds/rules when they need to be/can be set up |
|
Works Council (Radničko vijeće) |
Labour Act (OG 93/14, 127/17, 98/19), Participation of workers in decision-making - Works council (Articles 140-162) |
Elected employee representatives (by secret ballot). The number of members of the works council is determined by the number of workers employed: up to 75 workers: 1 representative and 751 to 1000 workers: 9 representatives. For each further 1000 of workers, the number of the members of the works council increases by two. |
Safeguards and promotes the interests of workers; monitors compliance with the Labour Act, working regulations, collective agreements and other provisions; monitors if the employer fulfils his obligations related to the calculation and payment of social security contributions. |
An employer who employs at least 20 workers has to set up a work council, with the exception of workers employed at public administration bodies. |
Trade union (Radnički sindikat) |
Labour Act (OG 93/14, 127/17, 98/19), Part ‘Collective industrial relations Trade unions and employer’s associations’ Right to associate (Articles 165-191) |
Workers have the right, according to their own free choice, to found and join a trade union, subject to only such requirements which may be prescribed by the articles of association or internal rules of this trade union. |
Trade unions decide autonomously on the methods for their representation before an employer. |
No regulated thresholds |
Workers' representative in the employer’s body |
Labour Act (OG 93/14, 127/17, 98/19), Article 164 |
A workers’ representative is a member of the company’s or cooperative’s body that supervises business management – a member of a public institution’s body (governing council or another appropriate body). |
The member of the aforementioned body has the same legal position as other appointed members of that body. |
No regulated thresholds |
Industrial action and disputes
The right to strike (štrajk) and or stage a solidarity strike ( štrajk solidarnosti) exists on the worker side, while employers may lock workers out only as a response to a strike already in progress. A lockout must not begin until eight days after a strike has begun. The Labour Act (93/14, 127/17, 98/19) in Article 205 stipulates that trade unions shall have the right to call and undertake a strike in order to protect and promote the economic and social interests of their members, or because remuneration and compensation has not been paid. In any dispute related to the conclusion, amendment or renewal of a collection agreement, the right to call and stage a strike is held by trade unions which have been determined to be representative for the purposes of collective bargaining.
A strike must be announced to the employer, or to the employers’ association, against which it is directed, whereas a solidarity strike must be announced to the employer on whose premises it is organised. A letter announcing the strike must state the reasons for the strike, the place, date and time of its commencement, as well as the method of its execution. Article 206 defines that in case of a dispute which could result in a strike or other form of industrial action, the mediation procedure must be conducted, except when the parties have reached an agreement on an alternative method for its resolution. Mediation is conducted by an independent mediator selected by the parties to a dispute, chosen either from the list compiled by the Economic and Social Council or by mutual agreement.
Requirements regarding an employment contract
According to Article 19 of the Labour Act (OG 93/14, 127/17, 98/19), it is prohibited to employ a person under 15 (or between 15 and 18 years of age if he/she is still subject to compulsory full-time elementary schooling). When a legal representative authorises the conclusion of an employment contract for a minor (with the exception of a minor who is still subject to compulsory full-time elementary schooling), the minor has legal competence for concluding and terminating such contract and for taking any legal actions.
Dismissal and termination procedures
Article 115 of the Labour Act allows an employer to dismiss workers for certain reasons. These comprise the specific nature of the work, in terms of organisation and technology; the employee’s personal characteristics; misconduct; failure to measure up to the work during the probationary period. When a worker is dismissed because of the changing nature of the work, his or her tenure, age and family circumstances have to be taken into consideration.
The Labour Act (OG 93/14, 127/17, 98/19) in Article 205 stipulates that a strike may not begin before the conclusion of the mediation procedure, when such a procedure is provided for by this Act, or prior to the completion of other amicable dispute resolution procedures agreed upon by the parties. Article 206 defines that in case of dispute which could result in a strike or other form of industrial action, the mediation procedure must be conducted as prescribed by the Labour Act, except when the parties have reached an agreement on an alternative method for its resolution. However, in reality, conciliation and mediation are used as synonyms.
Mentioned obligatory mediation is conducted by the mediator selected by the parties to a dispute from the list established by the Economic and Social Council or determined by mutual agreement. A decision on the level of mediators’ fees is made by the Minister responsible for labour affairs with a prior opinion from the Economic and Social Council and consent from the Minister of Finance. The Minister shall, alongside a prior opinion of the Economic and Social Council, adopt an ordinance regulating the methods for the selection of mediators, conduct of the mediation procedure and performance of administrative work necessary for this procedure. Article 208 determines the time limit for the completion of the mediation procedure. Unless otherwise agreed by the parties to a dispute, the obligatory mediation provided by the Labour Act must be completed within five days following the submission of information about the dispute to the Economic and Social Council, or to a state administrative office in a county responsible for labour affairs.
The Labour Act (OG 93/14, 127/17, 98/19) in Articles 210–212 defines the resolution of disputes by arbitration. Parties to a dispute may agree to bring their collective labour dispute before an arbitration body. The appointment of an individual arbiter or an arbitration board and other issues related to the arbitration procedure may be regulated by a collective agreement or by an agreement of the parties made after the dispute has arisen. Issues to be decided by arbitration are defined by Article 211. It stipulates how in their agreement to bring a dispute before an arbitration body, the parties shall delineate the issue to be resolved. The arbitration body may decide only upon the issues brought before it by the parties to a dispute. If a dispute concerns the application of laws and regulations or collective agreement, the arbitration body bases its decision on the appropriate legislation, another regulation or collective agreement. If a dispute concerns the conclusion, amendment or renewal of a collective agreement, the arbitration body bases its decision on equitable grounds. Unless the parties to a dispute specify otherwise in a collective agreement or an agreement to bring a dispute before an arbitration body, an arbitration award must include the reasons for the award. No appeal is permitted against an arbitration award. If a dispute concerns the conclusion, amendment or renewal of a collective agreement, the arbitration award has the legal force and effect of such an agreement.
Article 209 of the Labour Act (OG 93/14, 127/17, 98/19) regulates a decision made by the parties and its effects and states that parties may finalise the mediation procedure with an agreement. An agreement reached in the event of dispute related to conclusion, amendment or renewal of a collective agreement has the legal force and effect of a collective agreement. An agreement reached in the event of dispute over remuneration and compensation may be used to agree upon the method and dynamics of payment.
Data from the former Government Office for Social Partnership show that 100 cases were dealt with in 2012 (45 settled or conditionally settled), and 137 in 2013 (70 settled), a significant increase in comparison with the 2011 figures of 100 cases (46 settled). The number of cases and percentage successfully resolved decreased in 2014. While the absolute number of cases decreased in 2015 and 2016, the percentage of successfully resolved cases increased in both years. In 2017, the absolute number of mediation in collective labour disputes increased significantly, while the percentage of successfully resolved cases increased for one percentage point. The number of cases increased in 2018 and 2019, but the percentage of successfully resolved cases decreased.
2015 |
2016 |
2017 |
2018 |
2019 |
|
Mediation in collective labour disputes |
66 |
27 |
56 |
90 |
85 |
Successfully resolved |
26 |
12 |
25 |
35 |
28 |
Percentage of successfully resolved |
39% |
44% |
45% |
39% |
33% |
Source: Statistički prikaz, Gospodarsko socijalno vijeće (Statistical overview, Economic and Social Council), available at http://gsv.socijalno-partnerstvo.hr/nacionalni-gsv/mirenje
Individual employment relations
Individual employment relations are the relationship between the individual worker and their employer. This relationship is shaped by legal regulation and by the outcomes of social partner negotiations over the terms and conditions governing the employment relationship. This section looks into the start and termination of the employment relationship and entitlements and obligations in Croatia.
According to Article 19 of the Labour Act (OG 93/14, 127/17, 98/19), it is prohibited to employ a person under 15 (or between 15 and 18 years of age if he/she is still subject to compulsory full-time elementary schooling). When a legal representative authorises the conclusion of an employment contract for a minor (with the exception of a minor who is still subject to compulsory full-time elementary schooling), the minor has legal competence for concluding and terminating such contract and for taking any legal actions.
Article 115 of the Labour Act allows an employer to dismiss workers for certain reasons. These comprise the specific nature of the work, in terms of organisation and technology; the employee’s personal characteristics; misconduct; failure to measure up to the work during the probationary period. When a worker is dismissed because of the changing nature of the work, his or her tenure, age and family circumstances have to be taken into consideration.
Statutory leave arrangements, 2019
Maternity leave |
|
Maximum duration |
The leave is divided into two parts. The mandatory period, used by pregnant women/mothers, lasts from the 28th day before the expected delivery date (or from the 45th day, upon medical approval) to the 70th day after birth. In cases of poor health or health risks for the mother and child, the pregnant mother is entitled to sick leave before birth for the duration of the risk (‘sick leave due to illness and complications related to pregnancy’). |
Reimbursement |
If the insurance period condition is fulfilled, the benefit amount is equal to 100% of the benefit base (BB) during the whole period (HRK 3,326 or EUR 443). The minimum benefit amount is HRK 1,663 (50% of BB) (EUR 221.5). If the insurance period condition is not met, the benefit is equal to the minimum amount. |
Who pays? |
Social security fund – Hrvatski zavod za zdravstveno osiguranje (Croatian Institute for Health Insurance), funded from general taxation. |
Legal basis |
Zakon o rodiljnim i roditeljskim potporama (Act on Maternity and Parental Benefits) (OG 85/08, 110/08, 34/11, 54/13, 152/14, 59/17). |
Parental leave |
|
Maximum duration |
An employed or self-employed parent is entitled to parental leave after the child reaches the age of 6 months, and they may use it until the child turns 8 (for the first and second child). This is a personal right of both parents and they may take it for 8 (for the first and second child) or 30 months (for twins, third and every subsequent child). |
Reimbursement |
100% of average earnings, with a ceiling of 120% of the budgetary base rate for the first six months (HRK 3,991.20 or € 5328.16); 70% of the budgetary base rate after the first six months (HRK 2,328.20 or € 310) |
Who pays? |
Social security fund – Hrvatski zavod za zdravstveno osiguranje (Croatian Institute for Health Insurance), funded from general taxation |
Legal basis |
The Labour Act (Zakon o radu, OG 93/14, 127/17, 98/19), which has been harmonised with the European law, in particular Parental Leave Directive (2010/18/EU). The Maternity and Parental Benefits Act ( Zakon o rodiljnim i roditeljskim potporama, OG 85/08, 110/08, 34/11, 54/13, 152/14, 59/17). |
Paternity leave |
|
Maximum duration |
No statutory entitlement. |
Reimbursement |
No statutory entitlement. |
Who pays? |
No statutory entitlement. |
Legal basis |
No statutory entitlement. |
Paternity leave in case of multiple births or for different time periods of parental leave |
No statutory entitlement. |
Calculation of the sickness cash benefit provided by the Croatian Institute of Health Insurance is based on the average net wage in the six months preceding the month of sickness. It is paid in full (100% of the calculation base) when sickness is resulting from the Homeland War, for injury on work, for nursing a sick child under three years of age, for donation of tissues and organs, in case of isolation or complications during pregnancy. In all other instances it amounts to 70% of the calculation base. After six months of continuous sick leave, the amount increases to 80%. It is regulated by the Act on Mandatory Health Insurance (Zakon o obveznom zdravstvenom osiguranju - OG 80/13, 137/13 and 98/19), the Book of Rules Regarding Longest Duration of Sick Leave Depending on the Type of Disease ( Pravilnik o rokovima najduljeg trajanja bolovanja ovisno o vrsti bolesti - OG 153/09), the Labour Act (Zakon o radu, 93/14, 127/17 and 98/19) and Act on Maternity and Parental Benefits ( Zakon o rodiljnim i roditeljskim potporama - OG 85/08, 110/08, 34/11, 54/13, 152/14, 59/17).
Retirement age for men is 65 years, while the retirement age for women in Croatia increased to 62.250 in 2019 from 60.50 in 2012. The legal retirement age for women is rising every year by three months to reach age 65 by 2030. There is a possibility to take early retirement a maximum of five years before official retirement age with a reduction of 0.2% for each month of early retirement in the amount of pension (Zakon o izmjenama Zakona o mirovinskom osiguranju, OG 102/19, Article 4).
Pay
Pay: For workers, the reward for work and main source of income; for employers, a cost of production and focus of bargaining and legislation. This section looks into minimum wage setting in Croatia and guides the reader to further material on collective wage bargaining.
Nominal wages have increased between 2013 and 2019 in all sectors. The average monthly paid-off net earnings per person in paid employment in legal entities for 2019 amounted to HRK 6457 (€ 861), which is HRK 942 (€ 126) or 17.1% higher than the net wage in 2013 (HRK 5515 or € 735). The highest average monthly net earnings per person in paid employment in 2019 were in Financial and insurance activities and amounted to HRK 8862 (€ 1182), while in 2013 it was HRK 78701 (€ 1049). The lowest earnings in 2019 were in Administrative and support service activitiesand amounted to HRK 4956 (€ 661), while in 2013 it was HRK 3510 (€ 468). In the period 2013–2017, the average wage in the public sector was about 25% higher than in the private sector, but such difference became smaller in 2018-2019 to around 13% (Laušić, 2018). In the case of state-owned enterprises, the average wage was around 20% higher than in the private sector. The difference in educational attainment is an important determinant of the observed differences in average wages by sectors, so the return on higher education attainment is somewhat higher in the private sector.
Source: Croatian Bureau of Statistics
Average monthly net earnings per person in paid employment in legal entities, according to NKD 2007 ‒ months, HRK |
||||||
NACE |
2015 |
2016 |
2017 |
2018 |
2019 |
|
Total |
5711 |
5685 |
5984 |
6242 |
6457 |
|
A |
Agriculture, forestry and fishing |
5113 |
5169 |
5326 |
5674 |
5697 |
B |
Mining and quarrying |
7064 |
7332 |
7378 |
7858 |
7906 |
C |
Manufacturing |
5131 |
5159 |
5447 |
5708 |
5940 |
D |
Electricity, gas, steam and air conditioning supply |
7509 |
7966 |
8216 |
8366 |
8505 |
E |
Water supply; sewerage, waste management and remediation activities |
5457 |
5565 |
5750 |
5825 |
5998 |
F |
Construction |
4881 |
4675 |
4961 |
5214 |
5261 |
G |
Wholesale and retail trade; repair of motor vehicles and motorcycles |
5018 |
4945 |
5275 |
5598 |
5831 |
H |
Transportation and storage |
6438 |
5960 |
6189 |
6394 |
6581 |
I |
Accommodation and food service activities |
5007 |
4720 |
5026 |
5171 |
5336 |
J |
Information and communication |
8052 |
7602 |
8026 |
8365 |
8657 |
K |
Financial and insurance activities |
8119 |
7892 |
8339 |
8523 |
8862 |
L |
Real estate activities |
5330 |
5481 |
5755 |
5921 |
5994 |
M |
Professional, scientific and technical activities |
7362 |
6323 |
6723 |
7058 |
7282 |
N |
Administrative and support service activities |
3695 |
4024 |
4301 |
4818 |
4956 |
O |
Public administration and defence; compulsory social security |
6129 |
6554 |
6872 |
7126 |
7488 |
P |
Education |
5532 |
6146 |
6391 |
6580 |
6802 |
Q |
Human health and social work activities |
6404 |
6696 |
7004 |
7221 |
7519 |
R |
Arts, entertainment and recreation |
5697 |
5377 |
5666 |
5914 |
6151 |
S |
Other service activities |
5936 |
4847 |
5229 |
5472 |
5601 |
T |
Activities of households as employers; undifferentiated goods – and services – producing activities of households for own use |
- |
- |
- |
||
U |
Activities of extraterritorial organisations and bodies |
- |
- |
- |
Source: Croatian Bureau of Statistic Statistics in Line, Zagreb
Average monthly net earnings per person in paid employment in legal entities, according to NKD 2007 ‒ months, euro |
||||||
NACE |
2015 |
2016 |
2017 |
2018 |
2019 |
|
Total |
761 |
758 |
798 |
832 |
861 |
|
A |
Agriculture, forestry and fishing |
682 |
689 |
710 |
757 |
760 |
B |
Mining and quarrying |
942 |
978 |
984 |
1048 |
1054 |
C |
Manufacturing |
684 |
688 |
726 |
761 |
792 |
D |
Electricity, gas, steam and air conditioning supply |
1001 |
1062 |
1095 |
1116 |
1134 |
E |
Water supply; sewerage, waste management and remediation activities |
728 |
742 |
767 |
777 |
800 |
F |
Construction |
651 |
623 |
661 |
695 |
702 |
G |
Wholesale and retail trade; repair of motor vehicles and motorcycles |
669 |
659 |
703 |
747 |
778 |
H |
Transportation and storage |
858 |
795 |
825 |
853 |
878 |
I |
Accommodation and food service activities |
668 |
629 |
670 |
690 |
712 |
J |
Information and communication |
1074 |
1014 |
1070 |
1116 |
1154 |
K |
Financial and insurance activities |
1083 |
1052 |
1112 |
1137 |
1182 |
L |
Real estate activities |
711 |
731 |
767 |
790 |
799 |
M |
Professional, scientific and technical activities |
982 |
843 |
896 |
941 |
971 |
N |
Administrative and support service activities |
493 |
537 |
573 |
643 |
661 |
O |
Public administration and defence; compulsory social security |
817 |
874 |
916 |
950 |
999 |
P |
Education |
738 |
819 |
852 |
877 |
907 |
Q |
Human health and social work activities |
854 |
893 |
934 |
963 |
1003 |
R |
Arts, entertainment and recreation |
760 |
717 |
755 |
789 |
820 |
S |
Other service activities |
791 |
646 |
697 |
730 |
747 |
T |
Activities of households as employers; undifferentiated goods – and services – producing activities of households for own use |
- |
- |
- |
- |
- |
U |
Activities of extraterritorial organisations and bodies |
- |
- |
- |
- |
- |
Average monthly gross earnings per person in paid employment in legal entities, by professional attainment, HRK |
|||||||||
Professional attainment |
|||||||||
Total |
University degree |
Non-university degree |
Secondary school education |
Basic education |
Highly skilled |
Skilled |
Semi-skilled |
Unskilled |
|
2015 |
7978 |
12581 |
9163 |
6476 |
4985 |
8158 |
5782 |
5316 |
4597 |
2016 |
8037 |
12629 |
9236 |
6524 |
5010 |
8474 |
5832 |
5424 |
4854 |
2017 |
8304 |
12730 |
9443 |
6771 |
5197 |
9014 |
6040 |
5640 |
4909 |
2018 |
8612 |
13019 |
9718 |
7081 |
5449 |
8890 |
6265 |
5840 |
5131 |
Average monthly gross earnings per person in paid employment in legal entities, by professional attainment, euro |
||||||||||
Professional attainment |
||||||||||
Total |
University degree |
Non-university degree |
Secondary school education |
Basic education |
Highly skilled |
Skilled |
Semi-skilled |
Unskilled |
||
2015 |
1064 |
1677 |
1222 |
863 |
665 |
1088 |
771 |
709 |
613 |
|
2016 |
1072 |
1684 |
1231 |
870 |
668 |
1130 |
778 |
723 |
647 |
|
2017 |
1107 |
1697 |
1259 |
903 |
693 |
1202 |
805 |
752 |
655 |
|
2018 |
1148 |
1736 |
1296 |
944 |
668 |
1185 |
835 |
779 |
684 |
|
2019 |
1072 |
1684 |
1231 |
870 |
668 |
1130 |
778 |
723 |
647 |
|
Source for 2016, Croatian Bureau of Statistic (2019), Employment and Wages, 2017, Table 3.2. page 239; source for 2017, Croatian Bureau of Statistic (2020) Employment and Wages, 2018, Table 3.2, page 261; for 2018 and 2019, Croatian Bureau of Statistic (2021) Statistika u nizu.
In the early years of transition, Croatia had a form of minimum wage called ‘the guaranteed wage’. In that period, the government played the leading role and set the minimum wage level each quarter. With certain legislative changes, from 1993 to 1995, the government continued to amend the minimum wage level but did so only occasionally and irregularly at a relatively low level that had no significant influence on the economy. The Labour Law that came into force in 1996 provided a completely new framework for labour market regulation and strengthened the role of collective bargaining. According to the Law, the Government was still allowed, but not compelled, to set a minimum wage in consultation with the social partners. In reality, no minimum wage level was set in 1996 and in 1997. In March 1998, Croatia re-introduced the minimum wage after the conclusion of the National Collective Agreement on the Lowest Wage and it had an immediate extension to uncovered workers and employers. The agreed minimum wage was generally binding. A new stage in the regulation of the minimum wage emerged with the introduction of the Minimum Wage Act on 1 July 2008. Major changes from the previous system include a statutory regulation, defined penalties for non-compliance, a substantial one-off hike in the level of the minimum wage, a sub-minimum rate for specific sectors and the introduction of a specific adjustment formula. In the new system, the minimum wage is defined as a single rate, with a temporary derogation in the form of a sub-minimum rate for specific industries.
2015 |
2016 |
2017 |
2018 |
2019 |
|
Adult rate* |
HRK 3,029.55 (€ 400) |
HRK 3,120 (€ 407) |
HRK 3,276.00 (€ 436.91) |
HRK 3,440.00 (€ 463.30) |
HRK 3,750.00 (€ 500) |
*The amounts are the same also for young workers.
When calculating the minimum wage, the average wage indicator and the GDP rates in the previous year are used. The Croatian Bureau of Statistics uses the following formula.
This formula has been problematic because the growth rate of real GDP can be either positive or negative. In practice, however, a negative growth rate in real GDP is ignored in the calculation. In February 2013, the government proposed an amendment to the Minimum Wage Act (OG 30/13) to determine the value of the minimum wage in relation to more ‘socially sensitive’ indicators. These are:
For 2014 and 2015, the level of the minimum wage was determined by the Government following consultation with social partners. For 2016, 2017 and 2018, the level of the minimum wage was determined unilaterally by the government. The minimum wage is not differentiated for different groups of workers. Since 2019 the Commission for Monitoring and Analysis of the Minimum Wage has been active. It consists of trade union and employer representatives as well as representatives from academia. The Commission is a consultative body to the Minister, analysing recent trends relevant for minimum wage policy and proposing the minimum wage level for the next year.
For more information regarding the level and development of minimum wages, please see:
For more detailed information on the most recent outcomes in terms of collectively agreed pay, please see:
Working time
Working time: ‘Any period during which the worker is working, at the employer’s disposal and carrying out his activities or duties, in accordance with national laws and/or practice’ (Directive 2003/88/EC). This section briefly summarises regulation and issues regarding working time, overtime, part-time work as well as working time flexibility in Croatia.
Article 61 of the Labour Act (OG 93/14, 127/17, 98/19) says that a normal working week is 40 hours, which may be evenly or unevenly distributed. If hours of labour are unevenly distributed, a working day can be either longer or shorter than is usual. Such patterns are defined by law, collective bargaining, the agreement struck between the works council and the employer and by the individual contract. According to Article 66 (5), an employee is not supposed to work in such a pattern for less than one month or longer than a year. In any case, the total number of hours’ work should correspond to those of full-time or part-time employment. In such a case, a maximum of 60 hours can be worked, including overtime, but in any four successive months no more than 48 hours a week can be worked on average, including overtime.
For more detailed information on working time (including annual leave, statutory and collectively agreed working time), please consult:
Article 65 of the Labour Act (OG 93/14, 127/17, 98/19) defines that in the case of force majeure, an extraordinary increase in the scope of work and in other similar cases of a pressing need, the worker may, at the employer's request, work longer than the full-time or part-time working hours (overtime work). Where the employer, due to the nature of a pressing need, is not in a position to hand over a written request for overtime work before it begins, he is obliged to confirm the oral request in writing within seven days starting from the date overtime work was requested. If the worker works overtime, the total working time of the worker may not exceed 50 hours a week. The overtime work per worker may not exceed 180 hours a year, unless otherwise provided for in a collective agreement, in which case it may not exceed 250 hours a year. Overtime work by minors is prohibited.
Article 62 (OG 93/14, 127/17, 98/19) of the Act regulates part-time work, defined as any working time shorter than full-time week. A worker may not combine work at several employers to work more than a full-time week. With the consent of the first employer, a worker can work for up to eight hours a week, but no more than one hundred and eighty hours a year, with another employer. A worker cannot have a second job without informing his full-time employer. When the length of service is important for the exercise of rights arising from employment, part-time work is equated with full-time work. Apart from special derogations, regular pay and other remunerations such as holiday pay and bonuses are paid in proportion to the working time.
Part-time employment as a proportion of total employment fell from 5.6% in 2012 to 4.5% in 2020, according to Eurostat. In comparison to the EU27 average, Croatia has a low share of persons that work part-time, and this low share further decreased during the observed period 2012–2020, with a slight increase in 2015. This difference between the EU average and Croatia is particularly noticeable for women. The share of women in part-time jobs in the EU being more than four times higher than in Croatia.
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
|
Total (EU27) |
18.2 |
18.1 |
18 |
17.8 |
17.8 |
16.6 |
Total (Croatia) |
5.9 |
5.6 |
4.8 |
4.9 |
4.7 |
4.5 |
Women (EU27) |
30.2 |
30 |
29.8 |
29.5 |
29.4 |
27.6 |
Women (Croatia) |
7.3 |
7 |
6 |
6.6 |
6.6 |
6.1 |
Men (EU27) |
8 |
7.9 |
7.9 |
7.7 |
7.8 |
7.2 |
Men (Croatia) |
4.7 |
4.3 |
3.8 |
3.5 |
3.1 |
3.2 |
Source: Eurostat Labour Force Survey [lfsi_pt_a] – Persons employed part-time (20 to 64 years of age) – total and by sex.
Involuntary part-time workers can be defined as those working part-time because they could not find a full-time job.
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
|
Total (EU27) |
32.3 |
31 |
29.7 |
28 |
26.5 |
25 |
Total (Croatia) |
26.8 |
30.8 |
36.3 |
34.6 |
30.2 |
28.3 |
Women (EU27) |
28.8 |
27.7 |
26.4 |
25.2 |
23.9 |
22.5 |
Women (Croatia) |
19.8 |
26.7 |
29.1 |
32.9 |
30.1 |
28.2 |
Men (EU27) |
43.6 |
41.8 |
40.4 |
37.2 |
34.9 |
33.1 |
Men (Croatia) |
36.2 |
36.5 |
45.8 |
37.4 |
30.4 |
28.6 |
Source: Eurostat Labour Force Survey [lfsa_eppgai]- involuntary part-time employment as a percentage of the total part-time employment, by sex and age (20 to 64 years of age)
The share of involuntary part-time employment in the total part-time employment increased in Croatia from 22.4% in 2012 to 36.3% in 2017, decreasing to 30.2% in 2019 and 28.3% in 2020. While in the period 2012–2015, it was lower than the share for EU27, from 2017 - it was higher than the average share for EU27. During the economic crisis that lasted in Croatia almost until 2014, involuntary part-time employment was particularly pronounced in construction and in retail (Butković et all, 2016). In 2019, involuntary part-time employment as percentage of the total part-time employment for female in Croatia is higher (30.1%) than the average share for EU27 (23.9%), but lower for men in Croatia (30.4%) in comparison with the EU average (34.0%).
The Labour Act (OG 93/14, 127/17, 98/19) contains provisions on night work in Articles 69, 70 and 72. Night work means any work performed between the hours of 22.00 and 06.00, and in the agriculture sector between 22.00 and 5.00. In the case of minors working in industry, any work in the period between 19.00 and 07.00 shall be regarded as night work. In the case of minors not working in industry, any work in the period between 20.00 and 06.00 shall be regarded as night work. A night worker is any worker who regularly works at least three hours of his daily working time as a normal course during night time, and any worker who works at least one third of his daily working time during the period of twelve successive months during night time. Normal working hours for night workers may not, in the period of four months, exceed an average of 8 hours in any 24-hour period. Where, based on a danger assessment carried out pursuant to specific provisions on protection at work, the night worker is exposed to special hazards or heavy physical or mental strain, the employer must ensure that such a worker does not work more than 8 hours in any period of 24 hours during which they perform night work.
Night work by minors is prohibited, unless such work is a pressing need in business activities regulated by special legislation and where it may not be performed by adult workers; in such a case, the minor cannot work between midnight and 04.00 nor may he work longer than 8 hours in any period of 24 hours during which they perform night work. The employer must ensure that such work is performed under the surveillance of an adult. In organising night work, the employer is obliged to take special care to adapt the organisation of work to the worker and ensure that safety and health protection is adapted to the nature of night work. The employer is obliged to provide night workers with a health assessment before their assignment and thereafter at regular intervals. If a health assessment establishes that the night worker suffers from health problems connected with the fact that he performs night work, the employer is obliged to ensure that the worker can perform the same job in day work. In cases where the employer is not able to ensure the transfer to day work, he must offer the worker an employment contract for a type of day work to which he is suited and which to the greatest possible extent is comparable to the work previously performed by the worker.
The Labour Act (OG 93/14, 127/17, 98/19) sets out provisions on shift work in Articles 71 and 72. Shift work means any method of organising work in shifts, whereby workers succeed each other at the same work station according to a certain pattern, which may be continuous or discontinuous. A shift worker is any worker who performs his work in different shifts, working for an employer whose work is organised in shifts, based on patterns of working time, for a period of one week or one month. Where the work is organised in shifts that include night work, a change of shifts shall be ensured to limit the uninterrupted work in a night shift to a maximum of one week. In organising shift work, the employer is obliged to take special care so as to adapt the organisation of work to the worker and ensure that safety and health protection is adapted to the nature of shift work. The employer is obliged to ensure safety and health protection to shift workers that is adapted to the nature of their work, as well as ensuring that the functioning of sufficient protection and prevention services applicable to all other workers are available at any time.
There are no specific provisions regarding weekend work in the Labour Act (OG 93/14, OG 127/17, 98/19). When defining a weekly break, the Labour Act sets out in Article 75 that the worker is entitled to a weekly minimum uninterrupted rest period of 24 hours plus the hours of daily rest and the minor is entitled to a weekly minimum uninterrupted rest period of 48 hours. The rest must be used by the worker on Sundays or the day before or day after Sunday.
According to the Labour Act (OG 93/14, 127/17, 98/19Articles 73, 74 and 75), the worker who works at least six hours a day is entitled to a daily period of rest (a break) of a minimum of 30 minutes. The minor who works at least four hours a day is entitled to a daily period of rest (a break) of minimum 30 consecutive minutes. The part-time worker or minor at two or more employers with total daily working hours at all employers of at least 6 or 4.5 hours, is entitled to a break at each employer proportionate to his contracted part-time work. The rest period is counted in working time. The worker is entitled to a minimum daily rest period of 12 consecutive hours per 24-hour period. The employer must ensure that his adult seasonal workers performing work that involve two periods of work split up over the day is entitled to a minimum daily rest period of eight consecutive hours. The worker is entitled to a weekly minimum uninterrupted rest period of 24 hours plus the hours of daily rest. The minor is entitled to a weekly minimum uninterrupted rest period of 48 hours. The rest must be used by the worker on Sundays or the day before or day after Sunday. Where the worker is not in a position to use the rest period as previously mentioned, he must be afforded equivalent periods of compensatory weekly rest right after his working time with no weekly rest, or with a shorter period of rest. As an exception, the shift workers or workers who due to objective reasons or organisation of work cannot use the rest period must be afforded a weekly minimum uninterrupted rest period of 24 hours, without counting the daily rest.
Working time flexibility has a number of diverse characteristics in Croatia. Many of the newly employed have fixed-term contracts. There is a lot of shift-work and weekend-work, and relatively little night and evening work. Fixed-term contracts were on the decline until the start of the crisis in 2009, but after that gained in importance. Flexiwork tends to involve few hours of work all told, since part-time work outside the farm sector is rare. The data show that 74% of employers report that none, or fewer than 20%, of their employees can vary the beginnings and endings of their working day according to their personal needs.
Health and well-being
Maintaining health and well-being should be a high priority for workers and employers alike. Health is an asset closely associated with a person’s quality of life and longevity, as well as their ability to work. A healthy economy depends on a healthy workforce: organisations can experience loss of productivity through the ill-health of their workers. This section looks into psychosocial risks and health and safety in Croatia.
The Occupational Health and Safety Act (OG 71/14, 118/14, , NN 94/18, 96/18) introduced measures to protect workers from psychosocial risks (stress) and psychophysiological effort at work, with the aim of prevention and education of all stakeholders. The Act sets out the general principles of risk prevention at work and protection of health, rules to eliminate risk factors, procedures of training of workers and procedures of information and consultation of employees and their representative with employers and their authorised persons. The intention is to raise awareness and encourage preventive action not only by employers but also by employees.
There was an increase in working days lost due to accidents at work in 2015–2017 but a decline in 2018 (-13.8 pp).
2015 |
2016 |
2017 |
2018 |
|
All accidents |
9,973 |
10,119 |
10,972 |
9,455 |
Percent change on previous year |
10.8 |
1.5 |
8.4 |
-13.8 |
Per 1,000 employees |
7.5 |
7.4 |
8.0 |
6.9 |
Source: Eurostat, [hsw_mi01] and [lfsa_eegaed]
Work intensity, defined as working to tight deadlines at least a quarter of the time, was more present in the EU27 where in 2005 61.8% respondents faced such situation. In the same year in Croatia it was reported by 43.6% responders.
The situation did not change significantly in the EU27 - 62.0% of respondents faced the same problem in 2010 - but the deterioration was very pronounced in Croatia where 60.6% of respondents reported a rise in work intensity in 2010, just 1.4 percentage points less than the EU27. On average, people in Croatia are slightly less exposed to long working hours than people in the EU27 as a whole. In the EU27, 36.3% workers in 2005 and 32.3% in 2010 said they had to work 10 hours or more in a working day at least once or more per month, compared with Croatia (34.8% in 2005; 28.0% in 2010).
The purpose of the Occupational Health and Safety Act (OG 71/14, , 118/14, NN 94/18, 96/18, Article 1(2)) is a systematic improvement of safety and health protection at work, prevention of injuries at work, occupational diseases and other work-related diseases. Article 3 defines stress at work as health and psychological changes which are the result of the accumulating impact of stressors at work over a longer period of time. These may be manifested as physiological, emotional and cognitive reactions and as behavioural changes of the employee.
The general principles of prevention are stipulated in Article 11. The employer is obliged to implement occupational health and safety measures based on the general principles of prevention. These include: risk avoidance, risk assessment, prevention of risks at their source, adjustment of work to the employees in relation to the design of the workplace, the choice of work equipment and the mode of operation and work processes to relieve monotonous work. Other issues include work at a set pace, result-based work in a given period of time (normative work) and other measures to reduce their harmful effect on health. Employers must consider issues such as adaptation to technical progress, replacing hazardous substances or processes with the non-hazardous or less hazardous.
They are also required to develop a consistent comprehensive prevention policy by connecting technology, organisation of work, working conditions, human relationships and the influence of work environment. They must give preference to collective protective measures over individual ones, appropriately train and inform employees, and make all protective equipment available free of charge.
The general obligations of the employer for the organisation and implementation of occupational health and safety are defined by Article 17(7), and the measures, rules, procedures and activities of occupational health and safety of employees exposed to statodynamic, psychophysiological and other exertions are to be regulated by ministerial ordinance.
Croatia participates in EU campaigns on stress and psycho-social risks in the working place, and the institution in Croatia responsible for this campaign is The Croatian Institute for
Skills, learning and employability
Skills are the passport to employment; the better skilled an individual, the more employable they are. Good skills also tend to secure better-quality jobs and better earnings. This section briefly summarises the Croatian system for ensuring skills and employability and looks into the extent of training.
Knowledge, skills and competencies are essential prerequisites for competitive society, and Croatia is still in all these segments far below average in the EU. One of the main problems of the labour market in Croatia is a lack of qualified human capital and a mismatch of skills and labour market needs. In Croatia an important issue is an insufficient link between the education arena, the economy and employers; not enough attention is given to the estimates of future trends and needs of the labour force. This causes problems in providing education and skills programmes compatible with the skills and occupations sought on the labour market. One of the main reasons for the high incidence of unemployment among young people in Croatia is widespread skill mismatch. In 2014, the Strategy for Education, Science and Technology was drawn up with participation from representatives of social partner organisations in the working groups. It strongly emphasises the importance of better connecting education and training to the labour market, and improving educational outcomes and skills. Special attention is being given to the application of ICT in teaching and learning.
Main government institutions have played an important role in the Croatian labour market and are responsible for training regulation and development. They are the Ministry for Science and Education; the Ministry for Labour and Pension System; and the Croatian Employment Services.
The Ministry for Science and Education is responsible for the quality of the Croatian labour force and its training and skills. The reform of the Croatian educational system is still widely debated and many educational programmes still in place were designed a long time ago to meet now outdated needs. There is an urgent need to reform educational and training system in Croatia.
The Ministry for Labour and Pension System is in charge of regulating and governing labour relations, labour markets, relations with trade unions and employers, the policy of the pension insurance system and international cooperation in the field of labour and employment.
The Croatian Employment Service is in charge of the process of mediation in the labour market, providing job placement services, counselling and promoting the adaptability of enterprises facilitating redeployment and restructuring. The service also maintains passive and active labour market policies, facilitates new job creation by participating in local development initiatives and provides capacity support for international cooperation and reforming the labour market in Croatia.
Work organisation
Work organisation underpins economic and business development and has important consequences for productivity, innovation and working conditions. Eurofound research finds that some types of work organisation are associated with a better quality of work and employment. Therefore, developing or introducing different forms of work organisation are of particular interest because of the expected effects on productivity, efficiency and competitiveness of companies, as well as on workers’ working conditions. Ongoing research by Eurofound, based on EurWORK, the European Working Conditions Survey and the European Company Survey, monitors developments in work organisation.
For more detailed information on work organisation, please consult:
For Croatia, the European Company Survey (ECS) 2019 shows that in the three years preceding the survey in 2019, 18% of establishments realised innovation to the market, around 42% introduced innovation to the establishment while 40% had no innovation.
Equality and non-discrimination at work
The principle of equal treatment requires that all people, and in the context of the workplace all workers, have the right to receive the same treatment, and will not be discriminated against on the basis of criteria such as age, disability, nationality, race and religion.
In Croatia, discrimination is an unjustified and prohibited difference in treatment on the basis of certain characteristics listed in the Anti-discrimination Act (OG 85/08, 112/12), such as race or ethnic origin, skin colour, sex, language or religion. Discriminatory treatment or forms of discrimination according to the Anti-discrimination Act include direct and indirect discrimination, harassment and sexual harassment. To constitute harassment there needs to be a link between such treatment and one of the discrimination grounds as listed in the act. For example, there is discrimination if someone is harassed at their workplace because they are an older person or female. The legislation is monitored and enforced by various institutions and an ombudsman system, which includes a Gender Equality Ombudsperson and Disability Ombudsman.
According to the Eurostat data, the unadjusted gender pay gap in Croatia increased from 15.5% in 2010, to 17.6% in 2011, and to 18% in 2012. The unadjusted gender wage gap in Croatia is relatively high within the international context and it is 1.2 percentage points higher than average for the EU27 (16.8%). However, a survey conducted by Nestić, Rubil and Tomić (2014) used Labour Force Survey data and concluded that the adjusted gender gap in Croatia had slightly decreased from 17.1% in 2004, to 16.9% in 2008, to 15.9% in 2012. According to the project on the gender pay gap by the Centre for Education, Counselling and Research - CESI (2016), the gender gap is 9.8% (gross) and 9.6% (net). According to the World Bank (2019), men in Croatia earn much more than women. The average monthly pay for women accounts for around 88% of the average pay for men, and women who work earn less than men throughout their life.
In 2014, a Law on professional rehabilitation and employment of disabled persons (Zakon o profesionalnoj rehabilitaciji i zapošljavanju osoba s invaliditetom, OG 157/13, 152/14) came into force, and it was slightly amended in 2018 (39/18). In 2015, a quota for the employment of disabled persons was implemented, setting a mandatory 3% minimum of disabled employees for employers in all sectors with 20 or more employees. There are also two important laws: Ordinance on incentives for the employment of persons with disabilities (Pravilnik o poticajima pri zapošljavanju osoba s invaliditetom, OG 75/18) and Ordinance on Professional Rehabilitation and Centres for Professional Rehabilitation for Persons with Disabilities (Pravilnik o profesionalnoj rehabilitaciji i centrima za profesionalnu rehabilitaciju osoba s invaliditetom, OG 075/18).
Working life links
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