Croatia: Wage increase in the Renewed National Agreement

18 June 2018 12:05

In May 2018 the Ministry of Labour issued an act for the extension of the application of the Collective Bargaining Agreement to all employers in the construction industry in Croatia. Earlier in this year, the SGH Trade Union of Industry of Construction of Croatia reached the agreement with the Employers Association for Construction on wage increase at the national level for the construction sector.

The current national Collective Bargaining Agreement for the Construction Industry was signed in September 2015 and should be renewed with new provisions every two years. Additions and changes were proposed in February 2018 and then the renewed National agreement was signed.

“Our most important demand this year was a substantial wage increase. After the extension act in May 2018, this increase will benefit all workers in the construction sector. Workers in the construction industry in Croatia are doing very difficult work under hazardous working conditions, but do not enjoy decent wages. This stimulates migration out of the country and for those who are staying in Croatia it becomes difficult to sustain decent living standards,” said Jasenka Vukšić, President of the Croatian union SGH.

The renewed Collective Bargaining Agreement for the construction industry provides basic wage increase by 30 per cent from 2866 HRK (approximately 388 Euro) to 3750 HRK (506 Euro).

“We believe that this wage increase will at first place benefit the most vulnerable low skilled wage earners in our sector and reduce inequality in construction” said Jasenka Vukšić.

The national agreement in the construction industry also provides additional benefits to the workers, such as overtime work compensation of 30 per cent, paid and employer-organized transportation to the workplace, one-time supplement payment of 1800 HRK (247 Euro).