AVERAGE MONTHLY NET AND GROSS EARNINGS OF PERSONS IN PAID EMPLOYMENT

NOTES ON METHODOLOGY

Since January 2026, statistical data are observed, processed and presented according to the NKD 2025. The classification entered into force on 1 January 2025 (NN, No. 47/24). Its content and structure are completely harmonised with the Statistical Classification of Economic Activities in the European Union (hereinafter referred to as: NACE Rev. 2.1). Its implementation ensures a quality international comparability of statistical data.

In order to calculate the indices, the 2025 data were converted from NKD 2007 activities to NKD 2025 activities using the macro method of conversion.

The National Classification of Activities 2025 – NKD 2025 has a different structure compared to the NKD 2007 and a more detailed overview of the differences by sections between the new and existing classification is described in the document Differences between NKD 2007 and NKD 2025.

Data sources

Data on monthly net and gross earnings as well as data on paid hours were gathered by processing data from the Report on Income, Income Tax and Surtax as well as Contributions for Mandatory Insurances (JOPPD form), in effect since 1 January 2014.

All persons or entities that are the payers of income for which the income tax regulations prescribe the obligation of accounting and paying deduction tax are under the obligation to submit the JOPPD form.

Coverage and comparability

Data comprise persons in employment in legal entities of all types of ownership, government bodies, and bodies of local and regional self-government units on the territory of the Republic of Croatia.

Persons employed in crafts, trades and free lances, and employed insured persons – private farmers are not covered, so data on their pays are not included in the data on average earnings.

Data on monthly net and gross earnings of persons employed in legal entities include net and gross earnings of persons in permanent employment, irrespective of the kind of employment and the number of working-hours.

Persons in part-time employment who received earnings are expressed in full-time equivalent.

Data on monthly net and gross earnings are presented according to realised pays in the current month for the previous month, which is in line with pay dynamics in most legal entities, so the average earnings refer to the month for which the pay has been received. It does not apply to paid non-taxable incomes.

The following non-taxable incomes are covered, according to codes on the JOPPD form:

Code 21 –  gift for a child younger than 15 and benefit for a newborn, up to a prescribed amount

Code 22 –  occasional bonuses (Christmas bonus, annual leave bonus, etc.), up to a prescribed amount

Code 24 –  supplements for seafarers, up to a prescribed amount

Code 25 –  compensation for living separately from family, up to a prescribed amount

Code 26 –  severance, up to a prescribed amount

Code 60 –  jubilee payments to persons in employment depending on years of service, up to a prescribed amount

Code 61 –  occasional bonuses (Christmas bonus, annual leave bonus, etc.) for previous taxation periods (subsequent payments), up to a prescribed amount

Code 63 –  pecuniary awards for performance results and other types of additional awarding of persons in employment (supplemental earnings, supplements to monthly earnings, etc.)

Code 64 –  expenses for accommodation and food of persons engaged in occasional seasonal agricultural works, according to Article 6, Item 10, of the Income Tax Ordinance

Code 65 –  pecuniary lump-sum reimbursements for covering food costs of persons in employment, up to a prescribed amount

Code 66 –  food expenses for persons in employment emerged during employment with the employer based on authentic documentation, up to a prescribed amount

Code 67 –  accommodation expenses for persons in employment emerged during employment with the employer based on authentic documentation, paid through cashless transaction

Code 68 –  accommodation expenses for persons in employment emerged during employment with the employer based on authentic documentation, transmitted to worker’s account

Code 69 –  reimbursements for expenses of hospitality, tourist and other services rendered during workers’ vacation, pursuant to regulations determined by the ministry in charge for tourism

Code 70 –  reimbursements for expenses of regular care for workers’ children in institutions of pre-school education as well as in other legal entities or natural persons (kindergartens etc.)

Code 71 –  premiums of supplemental and additional health insurance – in effect since 2020.

Data from January 2016 and onwards are not comparable to previously published monthly data.

Definitions

Average monthly paid net earnings comprise income of a person in employment earned for the work done during regular working hours as well as annual leave, paid leave, public holidays and days-off as prescribed by law, sickness leave up to 42 days, absence for continuing professional education, during lay-off and job stop caused against a person’s will and of no fault of their own and net pays on the basis of compensations, allowances and rewards in sums which are subject to contributions, taxes and surtaxes.

Average monthly gross earnings include all kinds of net pays on the basis of employment and the following mandatory allocations: pension insurance contributions, income tax and surtax on income tax.

Number of paid hours is the number of hours for which persons in employment were paid. They include hours actually worked (hours done during regular working time and overtime hours) and hours not actually worked (annual leave, holidays, sick leave lasting less than 42 days and other paid hours not actually done). Paid hours do not include working hours not actually worked which are paid outside a legal entity (sick leave hours lasting over 42 days, maternity leave hours, hours of shorter working time done by parents, etc.).

Average monthly net and gross earnings per person in employment are calculated by dividing the total of pays with the number of persons in employment expressed in full-time equivalent.

Average monthly net and gross earnings per paid hour are calculated by dividing the total of pays with the total number of paid hours.

Nominal indices of net and gross earnings are calculated from the data on average monthly net and gross earnings for the respective months and year.

Real indices of net and gross earnings are calculated by dividing the nominal indices of net and gross earnings with a consumer price index for the respective month and year.

Percentile is a statistical measure of position dividing an ordered distribution of data into one hundred equal parts.

Median monthly net and gross earnings are calculated by determining a mean after earnings of persons in employment have been rank-ordered from the lowest to the highest one and show that 50% of persons in employment get earnings that are equal to or lower than that amount (median) and another 50% get earnings that are equal to or higher than that amount (median).

Quartile monthly net and gross earnings are calculated by dividing the earnings of persons in employment into four equal parts after they have been rank-ordered from the lowest to the highest one. Then the amount is selected below which 25%, 50%, 75% and 100% of the earnings of persons in employment are placed. They can be divided to first (lower) quartile, second quartile (median), third (upper) quartile and fourth quartile.

The first (lower) quartile indicates that 25% of persons in employment get earnings that are equal to or lower than the first quartile, while 75% of persons in employment get earnings that are equal to or higher than the first quartile.

The third (upper) quartile indicates that 75% of persons in employment get earnings that are equal to or lower than the third quartile, while 25% of persons in employment get earnings that are equal to or higher than the third quartile.

Decile monthly net and gross earnings are calculated by dividing earnings of persons in employment into ten equal parts after they have been rank-ordered from the lowest to the highest one. Then the amount is selected below which 10%, 20%, 30%, 40%, 50%, 60%, 70%, 80%, 90% and 100% of earnings of persons in employment are placed.

The first decile includes persons in employment with the lowest monthly earnings and indicates that 10% of persons in employment get earnings that are equal to or lower than the first decile, while 90% of persons in employment get earnings that are equal to or higher than that amount. The second decile includes persons in employment who get earnings that are higher than those included in the first decile and lower than those included in the third decile, etc.

Abbreviations

NKD 2007  National Classification of Activities, 2007 version

NKD 2025  National Classification of Activities, 2025 version

Symbols

-                no occurrence