The topic of this paper is wages, earnings and labor costs in the Republic of Croatia and the European Union. The paper explains the economic situation of the Republic of Croatia and gives a brief overview of consumer prices and the labor market. The paper explains the current situation of Croatia after joining the European Union and whether the situation itself has changed in recent years. The paper lists and analyzes data on employed and unemployed people both in the Republic of Croatia and in the European Union, as well as their wages and labor costs. The analysis of wage trends in the Republic of Croatia represents an important study dealing with the economic, social and legal aspects of wages and the labor market in this country. The study of changes in the level and structure of wages can provide a deeper insight into the economic situation and changes in the labor market, and help to understand the impact of various factors on workers' incomes. Wages are the compensation that employers are obligated to pay employees for their work and services rendered during work. It is paid monthly on the basis of the employment contract concluded between the employer and the employee, which specifies the amount of the wage. It is necessary to distinguish between gross and net wages: The net wage is the amount that the employee actually receives in his/her bank account after deducting all taxes and duties. This is the amount that the employee can use for his personal needs. From the gross salary, the employer deducts amounts for taxes (such as income tax) and contributions (such as pension and health insurance contributions). Salary is made up of the following five components: Basic salary, performance-related part of the salary, allowances, supplements and profit sharing. The main objective of this paper is to analyze approximately the salaries of employees in the Republic of Croatia and compare them with the member states of the European Union.