Croatian unions and changes for a minimum wage staff

The NHS trade union federation welcome the announced revocation of the measure whereby employers who have paid minimum wages to employees have been freed of the obligation to pay 50% of contributions, and the unions find that measure to have been just an encouragement to employers to give minimum wages to more and more workers. Note that currently employers are obliged to pay only 50% of the contributions due for their staff working for the minimum wage, while according to some inform reports, employers will be obliged to pay 75% of contributions for minimum monthly salaries as of the start of 2019 and the full contribution as of 2020. NHS leader Kresimir Sever has said that the implementation of that measure that frees employers of full contribution payment in the case of minimum wages has proven to be a bad measure. He has said that it would be good to try to have as fewer as possible employees working for minimum wages and to ensure higher pay for workers. The unionist says that employers should be helped to solve many problems they encounter but they should also be encouraged to provide a decent pay to their employees.

However, employers disagree. The Croatian Employers’ Association HUP finds the measure of the 50% payment of contributions for minimum wages to be a good measure as it has been linked with contributions and insist that this measure has helped employers to increase wages to their employees on a permanent basis. According to HUP, this measure has been used so far in the labor-intensive sector that employs lowly-educated workers as minimum wages are mainly paid in clothes and footwear industries, the wood-processing sector and in security companies.

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