Capital City
Zagreb
Currency
Euro
(
€
)
Timezone
GMT +1
Payroll Frequency
monthly
Tax Year
1 January - 31 December
Employer Tax
16.50%
Languages
Croatian
Capital City
Zagreb
Currency
Euro
(
€
)
Timezone
GMT +1
Payroll Frequency
monthly
Tax Year
1 January - 31 December
Employer Tax
16.50%
Languages
Croatian
As per the U.S. News and World Report, Croatia stands out as one of the most politically stable nations globally, ensuring a secure environment for foreign investors and businesses. The country boasts a simplified business registration process, minimising formalities and bureaucratic hurdles.
Croatia possesses a robust workforce, characterised by skilled professionals and a sizable English-speaking population. The education system places a significant emphasis on technical skills, equipping individuals for diverse roles across various industries.
The cost of living in Croatia is notably lower compared to other European countries, presenting a cost-effective option for companies. The country offers an advantageous labour market with dedicated and hardworking employees.
Croatia's strategic location benefits businesses, serving as an efficient gateway to key markets in Western and Eastern Europe and Asia. The country is well-connected through land, air, and sea routes, enhancing accessibility for businesses.
Businesses can only operate smoothly in Croatia if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Croatia below, to avoid any compliance issues.
While not legally obligatory, it is recommended to provide employees with a written contract in Croatia. Unless stated otherwise, contracts are generally considered permanent. Essential terms of employment must include:
We can help you get a new employee started in Croatia quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.
In Croatia, the typical workweek consists of 40 hours spread over 5 days. Employees must obtain written permission from their employer to exceed these standard working hours.
In Croatia, overtime is limited to 10 hours per week and 180 hours per year, unless specified differently in a collective bargaining agreement. It requires the employer's written request and is permissible in cases of force majeure, extraordinary business increases, or urgent business needs.
The probation period, not exceeding 6 months, is determined by the role and employment agreement. If the employee is absent due to reasons such as sick leave or maternity leave, the probation period may be extended.
1 January - 31 December is the 12-month accounting period that businesses in Croatia use for financial and tax reporting purposes.
The payroll cycle in Croatia is usually monthly, with employees being paid by the 15th of the following month.
The minimum wage for employees in Croatia is typically 5.25 EUR per hour, amounting to ~840 EUR per month for a typical 40 hour work week.
Croatian law does not include any regulations concerning 13th salaries.
Employer payroll contributions are generally estimated at an additional 16.5% on top of the employee salary in Croatia.
In Croatia , the typical estimation for employee payroll contributions cost is around 20%.
The local self-government units can choose two progressive tax rates between 15% and 35.4%. The actual ranges depend on the size of the municipality/city.
In Croatia, the old-age pension age is 65 for men and 64 years and 4 months for women, each requiring at least 15 years of service. Men can choose early retirement at 60 with 35 years of service, and women at 57 with 32 years and 4 months of service. Pension calculations consider age, duration of pension scheme status, and salary contributions during the employee's career.
In Croatia, work permits and visas are crucial for employers looking to hire foreign workers. Non-EU/EEA nationals must obtain specific permits to work legally. The key types of work permits and visas include the Temporary Residence Permit with Work Authorization for standard employment lasting up to one year, the EU Blue Card designed for highly skilled professionals valid for up to two years, and the Work Registration Certificate for short-term work assignments up to 90 days. Employers must complete the labor market test, submit the required documentation, and comply with Croatian labor regulations to sponsor and integrate foreign employees successfully.
The annual leave entitlement in Croatia is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.
Croatia recognises 14 public holidays annually, separate from the minimum paid leave entitlement and are taken in addition to annual leave. The following are the national holidays in Croatia:
Employees in Croatia are entitled to a minimum of 20 working days of paid vacation annually after six months of employment. Compensation during annual leave is based on the average salary from the last three months, and certain individuals, such as minors and those exposed to harmful impacts, qualify for an extended annual leave of 25 days.
Expectant employees have a right to 98 days of paid leave, including 28 days before the child's birth and 70 days after. During this period, they receive 100% of their average salary from the last 6 months of employment, and the Croatian Health Insurance Fund (HZZO) covers the cost.
Fathers and equivalent second parents receive 10 working days of paid paternity leave per child, extendable to 15 days for twins or multiples. The non-transferable leave must be taken within six months of the child's birth or adoption, with the Croatian government providing full wage coverage for second parents.
The employee is entitled to 42 days of paid sick leave, with the employer covering 70% of their regular salary. If the sick leave extends beyond 42 days, the employer pays for it initially, and reimbursement is obtained from Croatia's health insurance fund (HZZO).
Following a 6-month period post-birth, parents can opt for parental leave. Each parent is eligible for 4 months per child for the first two kids and 15 months for subsequent children or twins, up until the child reaches 8 years old.
In Croatia, terminations usually involve a standard notice period, except in cases of immediate dismissal for reasons such as misconduct, disobedience, lack of skill, neglect of duties, or unauthorized absence, where written notice is required following documented meetings and discussions.
The duration of the notice period for both temporary and permanent employees is determined by the length of the employee's service:
In Croatia, the amount of severance pay depends on the duration of the employee's service. Individuals with two or more years of employment receive compensation equivalent to 33% of their regular monthly pay rate for each year of service, capped at a maximum of six months' salary.
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
Copied to Clipboard
Where to next?
Your “everything you ever needed to know” guides to compliant global employment around the world.