According to the data released in 2014 by the Croatian Bureau of Statistics 1,5 million people are economically active, of which 1 million persons are employed in the private sector and 0,5 million are employed in the state and public sector. This paper seeks to provide a more detailed explanation of income and benefits for private and public sector contained in the state budget. The introduction of the Central Payroll System and the Register of Employees has enabled detailed monitoring of the employee data in the state and public sector which will enhance future salary planning, keeping statistics and staff redistribution. The number of employees of ministries shows that the biggest budget spenders („swallowers“) are education and health care ministries. The education sector (excluding higher education) employs 67.230 people. This fact, as well as the crisis that has hit Croatia, has caused many frequent clashes between the unions and the government over salary negotiations. This paper will be based on the cases of public sector employees, that is, school employees. The aim of this paper is to explain school facilities management, the accounting principles as well as to clarify the establishment and termination of employment, the policies and regulations governing equal relations and financial rights of school employees. The paper will deal with the basic salary calculation in the case of a secondary school with the special reference to the Central Payroll System, income reports, income taxes and compulsory insurance contributions and income tax reports. This paper will show the other rights of employees with examples: jubilee awards, retirement, gift for children, assistance and compensation in net amounts.