Salary as the basic cash inflow that an employer pays out to the individual for the work carried out is one of the most important, but also most complex types of income. During payroll, apart from the employee's cut, pensions and medical insurance, compulsory contributions are also calculated, as well as taxes and surtaxes which are expenditures going into the national budget. The public sector is a set of national functions financed by taxes and other national inflows which are ensured from the individuals' budgets. The school and preschool sectors are part of the public sector and are therefore a part of sectors which offer education to children, thus laying out the groundwork for maturing and professional development. Therefore, it is not a surprise that they’re one of the bigger “guzzlers” of the national budget. The aim of this paper is to show the way payroll is done in the public sector according to provisions of the Income Tax Act, Personal Income Tax Ordinary and Contributions Act. Moreover, the aim is to show the correlation between the payroll in the public sector and the salaries in the preschool and school sector. By analysing the salaries’ elements and factors, the aim is to reach the conclusion of whether it is possible to adopt the new law on amending and supplementing the Law on Preschool Education (Narodne novine 57/22) and thus decrease the lack of workforce, in this particular case, educators in the preschool sector with teaching qualifications, which would improve the quality of education and stay of children in kindergartens as well as the material satisfaction of teachers.