ZAGREB, Oct. 24 (Xinhua) -- The Croatian government has decided to raise the monthly minimum wage by 130 euros (140.4 U.S. dollars), bringing it to 970 euros from next year, Prime Minister Andrej Plenkovic said at a cabinet meeting on Thursday.
Plenkovic described the 15-percent increase as a tangible benefit for those earning minimum wages. Since 2016, the minimum wage in Croatia has risen by 134 percent and following the latest increase, it will account for 54 percent of the national average wage, he said.
To support employers who pay the minimum wage, the prime minister also introduced compensation measures designed to maintain jobs and sustain economic activity.
"We have tasked the Croatian Employment Services with developing measures to protect jobs, especially for employers with a high proportion of minimum wage earners," Plenkovic said.
He explained that businesses in the manufacturing sector, where many workers earn minimum wages, will be able to apply for compensation through the Employment Services to help keep their operations running. Further discussions with social partners are planned to finalize the details of this initiative.
In addition to the minimum wage increase, the hourly wage for students will also rise automatically, from 5.25 euros to 6.06 euros.
The wage hike follows warnings from opposition parties in the Croatian parliament, who argued on Wednesday that the current minimum wage is insufficient to cover the cost of living, leaving many minimum wage earners struggling to make ends meet. (1 euro = 1.08 U.S. dollar) ■