Over the last few years, the average salary in Croatia has been increasing slowly but steadily. Despite that, it is lower than the average salaries of other European countries like Bulgaria and Denmark.
According to the Croatian Bureau of Labor Statistics, the average salary in Croatia in 2022 was €1,328 (Euro) per month. This equates to around 1,448 USD (US dollars) per month based on exchange rates in April 2023.
But, if you want to outsource to Croatia, there are more factors to consider than the average salary alone.
In this article, we’ll explore all the must-know information about the average salary in Croatia. We’ll also cover the average salary of other European countries and the benefits of outsourcing to Croatia.
Note: Croatia joined the European Union in 2013. The Croatian currency changed from the Croatian kuna to the Euro on 1 Jan 2023.
Let’s get started.
What is the average salary in Croatia?
The average salary in Croatia varies drastically across different sectors like healthcare, IT, manufacturing, real estate, etc., like in any other country.
The salary range also depends on factors like profession, experience, education level, public sector vs private sector, and work type (part-time, full-time, or employment contract). However, the net salary shrinks further after applying the income tax.
Additionally, the average salary in Croatia varies from city to city, with Zagreb (the Croatian capital) having the highest average salary.
Typically, a Croatian employee earns an average annual salary of €16,086 (USD 17,534).
Now let’s look at other salary components like the median salary, maximum and minimum salary range, and average annual salary increments.
A. Median salary
According to Salary Explorer, the median salary in Croatia is €2,121 (USD 2,312) per month.
The median salary represents the middle number in a given set of salaries. It means that half of the Croatian employees earn less than the median salary, while the other half earn more than the median salary.
Additionally, The 2021 annual mean wage was €25,461 (USD 27,168).
B. Maximum and minimum salary range
Currently, the average salary in Croatia ranges from €497 (USD 542) per month to €8,792 (USD 9,583) per month. €497 is the minimum average salary and €8,792 is the maximum average salary.
Note: Minimum and maximum salary doesn’t mean the lowest and highest possible salary. It’s just the lowest and highest average pay, meaning some citizens may still earn less than the minimum or more than the maximum.
C. Average annual salary increment
Employees in Croatia get an average gross salary increment of 9% in 17 months. Since it’s quite uncommon for employees to get a salary increment every 12 months, we’ve added the most common time period for an increment. This equates to an average annual salary increment of 6%.
However, various factors affect the actual salary increment of Croatian employees.
Let’s look at the three main factors.
Here is the average annual salary increase across different industries:
|Industry||Average Annual Increment|
2. Experience level
Let’s explore the average annual increase in salaries by experience level:
|Experience Level||Average Annual Increment|
|Junior Level||3% – 5%|
|Mid-Career||6% – 9%|
|Senior Level||10% – 15%|
|Top Management||15% – 20%|
D. Minimum wage in Croatia
A minimum wage is the lowest possible remuneration that an employer should legally pay their employees.
Recently, many countries have introduced a minimum wage policy to avoid worker exploitation. The minimum wage in Croatia is €700/month (763 USD) as of the first quarter of 2023.
Salary comparison by education, job title, and city
Let’s compare the salary of Croatian employees by their education level, job title, and city.
A. By education
In most countries, the higher the education, the higher is the average monthly salary. The same is true in Croatia.
Based on salary surveys by salaryexplorer.com:
- Employees with a Bachelor’s degree generally earn 24% more than diploma holders.
- Working professionals with Master’s degrees are often paid 29% more than Bachelor’s degree holders.
- PhD holders usually receive a 23% higher wage on average than Master’s degree holders.
Essentially, the more qualified a candidate is, the higher the salary.
Note: Changes in total compensation based on education vary across locations and also depend on the career field.
B. By years of experience
Let’s look over the average annual increase in salaries by years of experience:
|Years of Experience||Salary Increase|
|Less than 2 years||Base salary|
|2 – 5||+32%|
|5 – 10||+36%|
|10 – 15||+21%|
|15 – 20||+14%|
C. By job title
Here are Croatia’s highest paying average salaries according to job titles:
|Job title||Average salary (Monthly)|
|Market Research Analysts||€2,307|
|Human Resources Specialists||€1,909|
So, it’s evident that the highest paying business jobs are pilot and compliance officers.
D. By city
Zagreb and Zadar are the Croatian cities with the highest average salary per capita since they’re the cities with the highest cost of living.
|Zagreb||€2,188 (USD 2,335)|
|Zadar||€2,055 (USD 2,193)|
|Dubrovnik||€1,618 (USD 1,719)|
|Split||€1,592 (USD 1,692)|
Salary comparison of other European countries
Let’s see how Croatia compares against other European countries in terms of average monthly salaries.
|Country||Average salary (monthly)|
|Bosnia and Herzegovina||€1175|
Note: This article’s wage and salary estimates are just guidelines based on salary surveys. Specific salaries and wages can differ based on education, location, years of experience, job title, and other mitigating factors.
Croatia has a lower average salary when compared to other prominent European nations like Portugal and the Czech Republic. This makes it an attractive outsourcing destination because you can save on labor costs while still getting high-quality services.
But, the cost isn’t the only benefit of outsourcing to Croatia.
Let’s explore the key advantages of outsourcing some of your business processes to this country.
Top 3 benefits of outsourcing to Croatia
Despite having a small working population, the economic situation in Croatia makes it a great time to outsource to Croatia. Here are some quick facts:
- The unemployment rate in Croatia is sitting at a relatively healthy 6.5% and has dropped from over 12% in previous years. This is a good sign of industry stability.
- The GDP (Gross Domestic Product) per capita in 2021 was approximately 17.4 billion USD, and this metric has followed a mostly positive growth trend over the last two decades.
- The share of the services sector, which also includes outsourcing services, contributed about 58.92% to the GDP of Croatia. This number has remained fairly stable over the last decade.
Economic indicators aside, here are the top three benefits of outsourcing your work to this European country:
1. A huge talent pool of technical experts
Croatia has one of the lowest app development costs, but the output quality is high.
One of the biggest reasons for that is the country’s large and diverse software development talent pool.
Croatia boasts more than 9000 software developers, web developers, and programmers in their workforce. You might think that’s insignificant compared to the rest of Europe.
However, the country’s developer pool has been growing by around 19% annually. In contrast, Europe’s developer pool growth is only about 6% on average.
Croatia owes its diverse IT pool to its innovation-forward culture. The country has a high technological adoption rate, with 77% of its population using the Internet. Overall, Croatia ranks 13th among all EU (European Union) countries regarding technological adaptation.
These advancements are complemented by the government’s dedication to subsidizing education. Universities in Croatia offer scholarships for bilateral programs and research projects.
Croatia is also home to some of the region’s best colleges and universities with world-class computer science education.
All this makes Croatia a great destination for outsourcing technical processes like software development and mobile app development.
2. Proficiency in English
Based on the English First English Proficiency Index (EF EPI), which measures a country’s overall English skills, Croatia ranks 11th both in Europe and worldwide.
Furthermore, English isn’t the only language Croatians are proficient in. As many as 80% of citizens are multilingual, with many speaking French and Spanish. That gives them a huge edge when dealing with clients from other nations in Europe.
3. Great cultural match with the western countries
Croatia fosters a business culture similar to Western regions like North America and the rest of Europe.
Take, for example, the average workweek. The Labor Act in Croatia has set the working hours to 40 hours/week (8 hours/day), which is similar to other Western countries.
Additionally, Croatians have a strong work ethic similar to western economies like the US and the UK, which makes them reliable service providers. All these factors combine to give Croatia a great edge in outsourcing work.
If you’re considering outsourcing to Croatia, the lower average salary compared to the United States, the United Kingdom, and other European countries make it a suitable outsourcing destination for your company.
But lower average salaries are just the tip of the iceberg. With the added benefit of skilled technical labor and cultural match with the western countries, outsourcing to Croatia is now 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 move for your business.