Labor costs and wage pressures rise in Croatia and Serbia

Economic data from Croatia and Serbia indicate shifting labor dynamics driven by inflation and rising costs. In Croatia, accelerating inflation is putting pressure on purchasing power. While average net salaries saw a 7.2 percent nominal increase compared to last year, real growth is being tempered by rising prices. This has led to calls from labor groups, such as the Construction Union, to increase the gross minimum wage from 1,050 euros to 1,250 euros for 2027.

In Serbia, research from the Republic Statistical Office shows that average labor costs per hour in 2024 reached 1,318 dinars (approximately 11.26 euros). The majority of these costs—70.4 percent—consist of regular salaries and bonuses including employee taxes and contributions. The information and communication sector recorded the highest hourly labor costs at 2,676 dinars, nearly double the national average, while the lowest costs were found in agriculture, forestry, and hospitality.