The fall of 2024 brought a significant development in the trade sector in Croatia. New Collective Agreement for Trade (“CAT”) came into force and was extended to apply to almost all employers engaged in retail and/or wholesale sector with effect from 1 November 2024. The CA introduces rules regulating various employment issues with a notable focus on financial benefits, including for example, higher minimum salary levels for different roles depending on complexity, mandatory financial compassionate subsidies for employees, mandatory annual gifts and jubilee awards, and mandatory severance pay in case of retirement. The CAT is made for the term of 3 years. Considering that the scope of the CAT is very broad, it is advisable for companies engaged in retail/wholesale in Croatia to undertake an assessment of their internal employment landscape and potentially reconsider and restructure their compensation schemes.