Income from self-employment (salary) is compensation to the employee for the work performed. When calculating the salary, it is important to calculate all the elements of which the salary consists. The components of the salary are: gross salary, salary contributions, income, personal deduction, tax base, tax and surtax, net salary amount and salary contribution. For the correct calculation of salary, it is necessary to follow and know the legal provisions, primarily the Income Tax Act and the Contributions Act, which prescribe the basic determinants od salary calculation, salary compensation or severance pay. The legal minimum wage, wage arrears and sick pay are only part of the specifics of wage calculation. Income tax is defined as a tax that is directly imposed on the income of the person who should bear the tax burden or on the income of workers. The Republic of Croatia uses a progressive system of income taxation. Progressive taxation means: the higher the wage of the worker, the higher the income tax rate. Income tax in the Republic of Croatia is regulated by the Income Tax Act, while the salary that the employer is obliged to pay to the employee for the work performed is determined by the Labor Act, collective agreements, and the employment contract and rulebook. Analyzes of the calculation of wages show the effects of legal and tax changes on the total cost of wages, as well as changes within the company concluded by the Collective Agreement of the company.