December 6 (SeeNews) - Croatia's labour minister Marko Pavic has said the minimum wage in the country will rise by 5%, or by 131 kuna ($20.5/17.4 euro) net from January 1, local media reported.
Employers who had paid minimum wages over the past 12 months will have their contribution base cut by 50%, resulting in higher salaries for employees and lower expenses for employers, Croatia's Hina news agency quoted pavoc as saying on Tuesday.
The government is expected to endorse the planned pay rise on Thursday.
The government will also consider an increase of quotas for foreign workers.
The foreign labour quota should be increased from this year's 9,000 permits to 31,000 in 2018, in order to cope with staff shortages in certain sectors, including construction, catering, tourism and shipbuilding.
The government last hiked the gross minimum monthly wage by 5% to 3,276 kuna as of 2017.
(1 euro=7.54886 kuna)