* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City
Zagreb
Currency

Euro (€)

Timezone

CET (GMT +1)

Payroll
Monthly
Employment Cost

16.50%

Annual Leave

20 days

In-demand Specialties*
Manufacturing, Ict, Professional Services

The Ultimate Guide to Hiring Employees in Croatia

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.

hiring-in-Croatia-guide

Key Considerations Before Hiring In Croatia

Employing in Croatia requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Croatia with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Croatia quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

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.

playroll-good-to-know

Fundamental Aspects of Employment in Croatia

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:

  • Identification of both parties
  • Starting date (and employment duration for temporary contracts)
  • Job description, duties, and responsibilities
  • Workplace and working hours
  • Basic salary (including compensation, benefits, and payment details)
  • Total number of holidays
  • Notice period for employment termination

Probationary Period in Croatia

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.

Working hours in Croatia

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.

Overtime in Croatia

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.

Navigating Key Aspects of Payroll in Croatia

Croatia has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January - 31 December

Fiscal Year in Croatia

1 January - 31 December is the 12-month accounting period that businesses in Croatia use for financial and tax reporting purposes.
monthly

Payroll Cycle in Croatia

The payroll cycle in Croatia is usually monthly, with employees being paid by the 15th of the following month.
3.898 EUR p/h

Minimum Wage in Croatia

The minimum wage for employees in Croatia is typically 3.898 EUR per hour, amounting to ~623.7 EUR per month for a typical 40 hour work week.

Minimum wages and salaries in Croatia

As of 2022, the minimum gross monthly wage in Croatia is 623.70 EUR, and is determined annually for the subsequent year.

Bonus Payments in Croatia

Croatian law does not include any regulations concerning 13th salaries.

Comprehensive Overview of Employment Taxes in Croatia

Understanding the tax obligations for both employers and employees is crucial when operating in Croatia's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Croatia.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 16.50% on top of the employee salary in Croatia.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Croatia, the typical estimation for employee payroll contributions cost is around 20.00%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

Income taxes in Croatia are computed using progressive rates and may include supplementary municipality taxes.

Tax Rate Income Bracket

Pension in Croatia

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.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Croatia tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Croatia

When it comes to terminating employment in Croatia, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

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 unauthorised absence, where written notice is required following documented meetings and discussions.

Notice Period

The duration of the notice period for both temporary and permanent employees is determined by the length of the employee's service:

  • During probation – 7 days’ notice
  • 1 year of service – 2 weeks’ notice
  • 2 years of service – 6 weeks’ notice
  • 5 years of service – 8 weeks’ notice
  • 10 years of service – 10 weeks’ notice
  • 20 years of service – 12 weeks’ notice
  • Employees over 50 years – additional 2 weeks
  • Employees over 55 years – additional 4 weeks

Severance Pay

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.

Annual Leave Entitlements and Company Policies in Croatia

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.

Public Holidays in Croatia

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:

Holiday Date

Paid Time Off in Croatia

Maternity Leave in Croatia

Paternity Leave in Croatia

Sick Leave in Croatia

Parental Leave In Croatia

Croatia's Benefits Built Into Playroll

Competitive benefits package in Croatia

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Croatia's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Croatia

Make your benefits package in Croatia a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Short-Term Sickness Insurance
  • Long-Term/Disability Insurance
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Croatia

Playroll allows you to provide localized benefits for employees in Croatia within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Croatia create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Croatia

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Croatia.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!