Local governments and incumbent systems in selected countries (Austria,Finland, Slo-venia,Hungary) are analyzed with respect to the organization of territorial govern-ments, the scope of local government, the number of employees in the public sector and the share of employees in local self-government, and with respect to the regulations for the planning regulatory status and salaries. Comparing Croatia, with the four selected countries, we can highlight the following facts: a relatively small population and territory, two levels of local self-government, the size and territory of local self-government units do not stand out from the average, a relatively high percentage of people employed in the public sector, a very small percentage of workers in the public sector are em-ployed in local self-government. Furthermore, in comparison to other relevant countries, salaries in local and regional self-government units in the Republic of Croatia differ significantly among individual local and regional self-government units than is the case in other analysed countries where they have a common system for determining salaries in local self-government units.The main characteristics of pay and benefit system in local and regional self-government units in Croatia are also stressed.The scope of local and regional government in the Republic of Croatia refers to the scope of counties, cities and municipalities. Thus the towns and municipalities perform tasks in a local scope in order to directly realize the needs of citizens (arranging settle-mentsand housing, spatial and urban planning, communal activities, care for children, social welfare, primary healthcare, education and primary education, culture, physical culture and sports, protection, protection and improvement of natural environment, fire and civil protection),while the county performs the duties of the regional importance(education, health, spatial and urban planning, economic development, transport and transport infrastructure,planning and development of networks of educational, health, social and cultural institutions). Considering decentralized and centralized systems of wages we haveto point out that some countries have totally centralized systems for certain categories of employees, and partially much decentralized systems for other categories of employees. Sweden is probably the most liberal country according to the way of determining wages while Hungary, Switzerland and Germany are examples of European countries which have centralized pay and benefit systems at the federal level.