Zagreb - Prime Minister Andrej Plenković said in parliament on Tuesday that by the end of his government's term the average net pay would rise to €1,600, while the minimum net pay would rise to €970 by the New Year.
Salaries, pensions and affordable housing are the government's priorities in the next four years, the prime minister said while presenting his state of the nation report.
"Today, at a meeting of the inner cabinet, we have decided that the gross minimum wage as of 1 January should amount to €970, an increase of €130," Plenković said, adding that that way the government would help those with the lowest income.
There are 100,000 people in Croatia who earn minimum wage and the government's decision is aimed at making their income more decent, he said.
The prime minister also announced plans to change the pension indexation formula to a 85:15 ratio, reflecting a more favourable index between the consumer price index and the nominal index of the average gross monthly wage.
He said the government also planned additional measures to benefit families and families with children. Mothers' years of service will be increased by 6 to 12 months for every child born or adopted, and an annual bonus will be introduced as well, Plenković said.
As of 1 January, one-off bonuses for newborn children will be increased by 100%, from €309 to 618, he said.