Over the last few years, the average salary in Croatia has risen slowly but steadily. Nevertheless, it is lower than average salaries in other European countries such as Bulgaria and Denmark.
According to the Croatian Bureau of Labor Statistics, the average salary in Croatia in 2022 was 1,328 Euros per month. Based on December 2022 exchange rates, this equates to approximately $1,410 USD per month.
But if you want to outsource to Croatia, there are many factors to consider beyond just the average salary.
This article explores all the information you need to know about the average salary in Croatia. We will also discuss average salaries in other European countries and the benefits of outsourcing to Croatia.
Note: Croatia joined the European Union in 2013.As a new development, the Croatian currency is Croatian Kuna To EUR From January 1, 2023. For this reason, EUR (€) The rest of this article.
let’s start.
What is the average salary in Croatia?
Average salaries in Croatia, like in other countries, vary widely across different sectors such as healthcare, IT, manufacturing and real estate.
Salary ranges also depend on factors such as occupation, experience, level of education, public and private sector, and type of work (part-time, full-time or contractual). However, applying income tax further reduces the net salary.
Furthermore, the average salary in Croatia varies from city to city. Zagreb (Capital of Croatia) Highest average salary.
Typically, the average annual salary of an employee in Croatia is €16,086(US$16,902).
Now let’s look at other salary components such as average salary, maximum and minimum salary ranges, and average annual salary increments.
A. Average salary
The average salary in Croatia is €2,121 (US$2,264)/month.
A median salary represents the middle number for a particular salary set. This means that half of Croatia’s employees are below the median salary and the other half are above the median salary.
Furthermore, the average annual wage in 2021 will be €25,461 (US$27,168).
B. Upper and lower salary limits
Currently, the average salary range in Croatia is €497 (USD 529)/month €8,792 (9352 USD)/month. The minimum average salary is EUR 497 and the maximum average salary is EUR 8,792.
Note: Minimum and maximum salaries do not imply minimum and maximum possible salaries.it’s just the lowest and highest average wagethat is, some citizens may still be below the minimum income or above the maximum income.
C. Average annual salary increase
Croatian employees see an average gross salary increase of 9% in 17 months. We’ve added the most common time periods for raises because it’s very rare for an employee to get a raise every 12 months of her. This equates to an average annual income increase of 6%.
However, various factors affect the actual salary increase for Croatian employees.
Let’s look at three main factors.
1. Industry
Below are the average annual salary increases for different industries.
industry | average annual increment |
banking | 9% |
energy | 9% |
information technology | 9% |
health care | 9% |
trip | 9% |
construction | 9% |
education | 9% |
sauce: salaryexplorer.com
2. Experience level
Find out the average annual increase in salary by experience level.
degree of experience | average annual increment |
junior level | 3% – 5% |
Mid-career recruitment | 6% – 9% |
senior level | 10% – 15% |
top management | 15% – 20% |
sauce: salaryexplorer.com
D. Croatia’s Minimum Wage
The minimum wage is the minimum compensation that employers are legally required to pay to their employees.
Recently, many countries have introduced minimum wage policies to avoid exploitation of workers.croatia minimum wage €622/month (US$661) As of Q3 2022.
Salary comparison by educational background, job title and city
Compare employee salaries in Croatia by education level, job title and city.
A. by education
In most countries, the higher the education, the higher the average monthly salary. Same in Croatia.
Based on Salary Survey by salaryexplorer.com:
- Employees with a bachelor’s degree typically earn 24% more than those with a diploma.
- Professionals with master’s degrees are paid 29% more than those with bachelor’s degrees.
- PhD holders typically receive an average of 23% higher wages than master’s degree holders.
Basically, the more qualified the candidate, the higher the salary.
Note: change of Total reward Educational qualifications vary by location and by career field.
B. Based on years of experience
Let’s take a look at the average annual increase in salary by years of experience.
years of experience | salary increase |
less than 2 years | basic salary |
twenty five | +32% |
5 to 10 | +36% |
10 – 15 | +21% |
15-20 | +14% |
over 20 years | +9% |
sauce: salaryexplorer.com
C. By position
Here are the highest average salaries in Croatia according to job titles:
So it’s clear that the highest paying business jobs are pilot and compliance officers.
sauce: SalaryExplorer.com
D.By city
Zagreb and Zadar are the Croatian cities with the highest average salaries per capita as they are the cities with the highest cost of living.
city | average salary |
Zagreb | €2,188 (US$2,335) |
Zadar | €2,055 (US$2,193) |
Dubrovnik | 1,618 Euro (1,719 USD) |
Split | €1,592 (US$1,692) |
sauce: SalaryExplorer.com
Let’s compare the average monthly income in Croatia with other European countries.
Country | Average salary (monthly) |
Switzerland | €10485 |
Denmark | €5458 |
Portugal | €2750 |
Montenegro | €2670 |
Czech Republic | €2512 |
Slovenia | €1970 |
Latvia | €1849 |
Bulgaria | €1690 |
Croatia | €1328 |
Hungary | €1227 |
Serbia | €1193 |
Bosnia-Herzegovina | €1175 |
Lithuania | €947 |
sauce: SalaryExplorer.com
Note: The wage and salary estimates in this article are just guidelines based on salary surveys. Specific salaries and wages may vary based on education, location, years of experience, job title, and other mitigating factors.
Croatia has low average salaries when compared to other major European countries such as Portugal and the Czech Republic. This makes it an attractive outsourcing destination as it saves labor costs while receiving high quality service.
But cost is not the only advantage of outsourcing to Croatia.
Let’s explore the main benefits of outsourcing some of your business processes to this country.
Top 3 Benefits of Outsourcing to Croatia
Despite its small workforce, Croatia’s economic situation presents a great opportunity to outsource to Croatia. Here are some quick facts:
- Croatia’s unemployment rate stands at a relatively healthy 6.5%, down from over 12% in previous years. This is a good sign of industry stability.
- With GDP (Gross Domestic Product) per capita at around US$17.4 billion in 2021, this metric has followed a mostly positive growth trend over the past two decades.
- The share of the services sector, including outsourcing services, contributes about 58.92% to Croatia’s GDP. This number has remained fairly stable over the past decade.
Economic indicators aside, here are the top three benefits of outsourcing your work to this European country.
1. Huge talent pool of technical experts
Croatia is one of the lowest countries. App development costbut the output quality is high.
One of the biggest reasons for that is the country’s large and diverse software development talent pool.
Croatia has over 9000 software developers, web developers and programmers. Compared to the rest of Europe, you might think it’s trivial.
However, the country’s developer pool is growing by about 19% each year. In contrast, the European developer pool grows at an average rate of only about 6%.
Croatia’s diverse IT pool is thanks to its culture of innovation. The country has a high technology adoption rate, with 77% of the population using the internet. Overall, Croatia ranks her 13th among all her EU (European Union) countries in terms of technological adaptation.
These advances are complemented by government subsidies for education. Croatian universities offer scholarships for bilateral programs and research projects.
Croatia has some of the best universities in the region that offer world-class computer science education.
All this makes Croatia a perfect destination for outsourcing technical processes such as software development and mobile app development.
2. English proficiency
Based on the English First English Proficiency Index (EF epi) measures the country’s overall English proficiency, with Croatia ranked 11th both in Europe and in the world.
Moreover, English is not the only language Croatians are fluent in. As many as 80% of citizens are multilingual, with many speaking French and SpanishThis gives us a huge advantage when dealing with clients from other European countries.
3. Great cultural matching with Western countries
Croatia fosters a business culture similar to western regions such as North America and the rest of Europe.
For example, consider the average working week.Croatian labor law regulates working hours 40 hours a week (8 hours/day), similar to other western countries.
In addition, Croats have a strong work ethic, similar to Western economies such as the US and UK, making them reliable service providers. All these factors combine to give Croatia a significant edge in outsourcing work.
summary
If you are considering outsourcing to Croatia, it will be a good outsourcing destination for your company as the average salary is low compared to the US, UK and other European countries.
But low average salaries are just the tip of the iceberg. The added benefits of a skilled and skilled workforce and cultural match with the West make outsourcing to Croatia more attractive than ever.
You can use the information provided in this guide to understand the average salaries in Croatia and decide if outsourcing to the country is the best way for your business.