Croatia and Bosnia and Herzegovina report wage and cost of living shifts

In Croatia, the government has announced that the gross minimum wage will increase to 1,130 euros starting January 1, 2027. This represents a 7.6 percent rise from the current 1,050 euros. Prime Minister Andrej Plenković stated the increase aims to protect low-income workers while maintaining economic competitiveness. The decision also raises the minimum hourly rate for students to 7.06 euros. In response, the Association Voice of Entrepreneurs (UGP) has requested documentation regarding the impact of this increase on small and medium-sized businesses, seeking clarity on the actual costs to employers versus the net gains for workers.

In Bosnia and Herzegovina, the Alliance of Independent Trade Unions (SSSBiH) reports that the median net salary is approximately 1,350 KM. The union highlights a significant gap between earnings and the cost of living, noting that the union consumer basket reached 3,565.70 KM in September 2026. According to Samir Kurtović, president of the SSSBiH, more than half of employees in the Federation of Bosnia and Herzegovina earn less than the average salary, making it difficult to secure basic necessities. The union warns that these economic conditions could lead to increased emigration and further weaken the country's demographic and economic systems.

Additionally, reports indicate that despite a decrease in the number of employees within Bosnian state institutions, total expenditures for salaries and benefits rose by approximately 8.3 percent in the first half of the year, totaling 415.77 million KM.