by croatiaweek
May 15, 2026
in
Zagreb
Croatia’s average annual gross salary remains significantly below Western European levels despite strong wage growth in recent years, according to the latest European wage data.
The OECD’s new Taxing Wages 2026 report highlighted major differences in annual gross salaries across Europe, both in nominal terms and when adjusted for purchasing power.
The report showed annual gross wages ranging from €18,590 in Turkey to €107,487 in Switzerland, the only European country where average gross salaries exceed €100,000 annually, Euronews writes.
Although Croatia was not included in the OECD analysis as it is not yet a member of the organisation, national statistics show that the average monthly gross salary per employee in Croatian legal entities reached €2,016 in 2025.
According to Croatia’s Bureau of Statistics, this represents nominal annual growth of 10.7 percent and real growth of 6.8 percent compared with 2024.
On an annual basis, Croatia’s average gross salary stands at approximately €24,192, placing the country among the ten EU member states with average annual gross wages below €30,000, Poslovni Dnevnik writes.
Despite continued salary growth, the gap compared with Western Europe remains substantial. Croatia’s average annual gross salary is almost four times lower than Switzerland’s and nearly three times lower than Germany’s.
Among EU countries, Luxembourg recorded the highest average annual gross salary at €77,844, while Iceland ranked second overall in Europe with €85,950.
Denmark and the Netherlands also ranked among the highest-paying countries, both exceeding €69,000 annually.
Germany led among Europe’s largest economies with an average annual gross salary of €66,700, followed closely by the United Kingdom at just over €65,000. France, Italy and Spain recorded considerably lower figures, with Spain standing at €32,678 annually.
At the lower end of the EU ranking, Slovakia recorded the lowest average annual gross salary at €19,590. Hungary, Latvia, the Czech Republic, Portugal and Poland also remained below the €25,000 threshold.
When purchasing power is taken into account, some rankings change significantly. Germany moves into second place with purchasing-power-adjusted salaries approaching €94,000, while Turkey rises nine places due to lower living costs.
Experts from the International Labour Organization said wage differences are influenced by factors including economic productivity, labour market structures, trade union strength and collective bargaining systems.
Countries with stronger technology, finance and industrial sectors generally report higher salaries.