As organizations across Central and Southeastern Europe prepare for 2026, we are seeing a cautiously optimistic outlook for Croatia and Slovenia, according to results from WTW’s July Salary Budget Planning Report. Despite economic headwinds, salary budgets are holding steady, and real wage growth is expected to improve. This offers a window of opportunity for HR leaders to recalibrate their total rewards strategies.
The results also provide a view into information on 2025 actual and 2026 planned salary increases, the factors affecting salary budget changes, recruitment levels and much more. Additionally, it is important to consider key economic data across regions by consumer price index (CPI), unemployment and gross domestic product (GDP) before diving into salary increases being budgeted in Croatia and Slovenia. We explore these factors, as well as where employers need to focus, in this article.
Inflation in Croatia is forecasted to remain low in 2026, while GDP and unemployment levels are expected to remain quite stable. On the other hand, inflation in Slovenia might show some decrease in 2026, GDP looks like it is improving significantly and Unemployment rates are forecasted to rise but moderately though. These indicators suggest a stable macroeconomic environment that supports modest but meaningful compensation planning.
Across both markets, the average salary increase for 2025 and 2026 is 4%, outpacing inflation and indicating positive real-wage growth. This trend is consistent across all employee categories, from executives to production staff. Voluntary turnover in Croatia tripled, and Slovenia saw a conservative hiring outlook, with 88% of companies maintaining current staffing levels.
In Croatia, 2025 salary budget trends reflected a cautious approach, with 37% of organizations reducing budgets compared to initial projections, and only 15% exceeding them (Figure 1).
This shift is primarily driven by anticipated recession and cost management concerns, which now outweigh inflationary pressures seen in 2024. Workforce retention remains a secondary factor, but economic uncertainty dominates decision making (Figure 2).
In Slovenia, the picture is slightly more stable. While 27.8% of companies reported lower budgets than last year, half maintained their original projections for this year and 22% surpassed them (Figure 3).
Cost containment and inflation remain key influences, though recession fears are less pronounced than in Croatia (Figure 4).
Overall, both markets show a clear pivot toward conservative planning amid economic headwinds.
WTW’s compensation surveys highlight significant salary growth in high-demand roles. In Croatia, data science, IT development and financial analysis roles saw increases of up to 36%, reflecting the growing value of digital and analytical skills (Table 1).
| Role at the professional band, P3 career level | Median base salary |
|---|---|
| Data science and business intelligence | +36% |
| IT development | +27% |
| Financial analysis and tax | +27% |
| Customer support/operations | +23% |
| Technical customer support | +22% |
| Project/program management | +16% |
| Environmental health and safety | +15% |
| Accounting | +8% |
Slovenia followed suit, with IT administration and engineering leading salary growth (Table 2).
| Role at the professional band, P3 career level | Median base salary |
|---|---|
| IT administration | +33% |
| Engineering | +22% |
| Administrative services | +20% |
| Legal | +18% |
| Data science and business intelligence | +17% |
| Sales support and administration | +13% |
| Project/program management | +10% |
| Accounting | +8% |
Contrasting patterns in gender representation can be seen across Croatia and Slovenia. In Croatia, men represent 60% of the workforce overall, with the highest concentrations in technical support (78%), while women slightly outnumber men at the senior professional level (52%) (Figure 5).
Slovenia presents a more balanced picture, with an overall split of 53% male vs. 47% female, and full parity at the executive and senior professional levels (Figure 6).
Technical roles remain male-dominated in both markets, highlighting opportunities for diversity initiatives in operational functions.
The EU Pay Transparency Directive is accelerating the shift toward openness. While most organizations are still in the early stages — communicating job levels and pay structures — many are planning to advance toward full transparency, including pay gap disclosures. However, progress is gradual. According to WTW’s 2025 Global Pay Transparency Survey, key barriers include:
To move forward, companies must invest in:
As we look ahead to 2026, the message is clear: Real salary growth is possible, but only with strategic planning, data-driven insights and a commitment to transparency. For HR professionals, this is a pivotal moment to lead the conversation — shaping fair, competitive and future-ready reward strategies.
