PM: Salary increases expected in the next three months

Prime Minister Andrej Plenković said today that salary increases can be expected in the next three months, adding that salaries are already increasing now, in February for January, after the tax reform comes into force.

The new year brought a series of changes. All laws that came into force on 1 January have a fundamental goal - to increase the social and economic standard of citizens and support the economy, Plenković told Croatian Radio.

When it comes to the law on wages in civil and public service, which covers 240,000 people, Plenković said a unique reform was carried out that no one dared to carry out before. 

"The law entered into force the day before yesterday and now we will proceed with the adoption of two decrees, one for public servants and the other for civil servants. Those two decrees will enter into force by the end of February, appropriate decisions will be made during March based on the new regulations, and I believe that the new salaries will be paid in April for March."

"We can expect wage increases in the next three months, but let's not forget, wages are already rising now - in February for January, after the tax reform," he said and recalled that Christmas bonuses rose from €232 to €300.

Plenković also recalled that a €100 Easter allowance will be paid out. 

In order to further increase wages and relieve the burden on businesses, nine tax laws have been amended, the minimum wage is increasing, and the abolition of municipal surtax will also affect the increase in wages, he added.

"I think that only with time, as people receive salaries, citizens will become aware of which local areas went for lower labour taxation, and which did not use the room provided by the Parliament at the suggestion of the Government," he asserted.

Croatia is in historic reconstruction and investment cycle

The credit rating, he says, was the best ever last year.

"The investment credit rating is four points higher than when we started in 2016. Plus, a positive outlook, according to all three agencies. Second, we are reducing the share of public debt in GDP. We had a spike in the time of COVID and after that the curve went back. I believe that it could be below 60 percent in 2024, 2025, which would be great," Plenković said.

He added that the purchasing power of citizens is greater than it was before, and noted that all economic segments should contribute to this balance.

Regarding EU funds, he said that someone tried to obtain them. "Money used to rebuild Zagreb and Banovina (after the 2020 earthquakes) did not fall from the sky. We fought for it," he said and added that a huge infrastructure cycle is underway throughout Croatia, which is in a historic reconstruction and investment cycle.

"By 2030, my goal as prime minister is that every county centre has approximately equal chances," he said and added that this is the essence of modern sovereignty - realising strategic national goals with a strengthened international position.

When it comes to corruption, he said that it is the wish of all EU countries, including the Croatian government, that it be better controlled.

"None of us is in favor of someone later misusing the funds provided by the government. And we are the most interested in this, the strictest towards any irregularity in the use of state budget funds and European funds", he added.

Plenković also briefly commented on the fact that the Constitutional Court rejected the GONG NGO's request about to the closure of St. Mark's Square.

"I didn't hear that GONG asked how the Croatian policeman, who was injured (when shots were fired at the government building), was doing, if there were any consequences, but I heard the thesis that St. Mark's Square should be opened... Let them go anywhere beyond Bregana and see how national institutions are protected", he said.

Text: Hina

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