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Croatia

Introduction
 

General overview & country facts, as well as labour regulations.
Employer Contributions
 

These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
 

These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
 

All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.

COUNTRY PLAYBOOK

Croatia
Everything you need to know about payroll, benefits & hiring top talent in Croatia

Currency

Croatian Kuna (HRK)

Salary payment frequency

Monthly

Capital

Zagreb

Time Zone

GMT + 1:00

Official Languages

Croatian

Is English spoken?

Yes
croatia Employer of record

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Introduction

General Overview & Economic Facts
  • Croatia (Hrvatska) officially known as the Republic of Croatia (Republika Hrvatska) is a country in Southeast Europe
  • It spans an area of 56,594 square kilometres (21,851 square miles) and has a population of approximately 3.9 million
  • Croatia is a sovereign state, governed by a parliamentary system
  • Croatia is known for its strong social security system, free education, universal healthcare and a high per capita income
  • Croatia’s economy ranks 81st by nominal GDP (2020) and 80th by PPP (2020)
  • Croatia ranks 43rd on the HDI (2019)
Why Employ In Croatia?
  • The main exports from Croatia are mineral fuels, electric machinery, wood, iron, steel, vehicles and plastics
  • 10.76% of the population is between the ages of 15 and 24 years, with 39.77% of the population being between the ages of 25 and 54. Croatia has a fairly youthful population, making it a favourable country to employ young, energetic employees
Overview Of The Labour Law
  • The Croatian Labor Act is the main source of labour law. Additional sources include the Constitution, international conventions and collective bargaining agreements
  • The labour regulations set out general rules of labour law, leave, wages and demonstrations
  • The guidelines regulating Croatian labour law are quite formal and Croatian labour law protects both employers and employees
Fun Country Facts
  • The Dalmatian dog breed originates from Croatia
  • The richest collection in the world of remains of Neanderthals was discovered in Croatia
  • Famous Zlatni rat beach changes shape when winds are strong enough
Why Use Playroll Services For Croatia?
  • Employing in Croatia requires companies to have their own legal entity in the country as well as to manage payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in Croatia
  • With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
  • We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing a thriving team
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Employer Contributions

These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.

Health Insurance

16.50%

Chamber of Commerce Fee

The Chamber of Commerce Fee varies by group:

Group 1 – Small Enterprises
HRK 42.00

Group 2 – Medium Enterprises
HRK 1,083.00

Group 3 – Large Enterprises
HRK 3,973.00

Disability Insurance

Called Disabled Workers Insurance in Croatia

  • Companies with more than 20 employees must employ disabled employees equal to at least 3.00% of the total number of employees
  • Companies that do not comply with this requirement must pay a monthly fee amounting to 20% of the minimum salary for each disabled employee they are not employing
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Employee Contributions

These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.

Pension

Calculated on a maximum salary of HRK 55,086.00 per month.

Pillar I
15.00%

Pillar II
5.00%

Income Tax

Income Tax is ‘Pay As You Earn’
Federal tax of 30% is applied on vacation premium exemptions, grocery coupons, and Christmas bonuses

Income bracket per annum

HRK 0.00 – 360,000.00 
20.00%

HRK 360,000.01 or more
30.00%

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Employment Terms

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General

Minimum Wage
  • HRK 4,250.00 per month
Working Hours
  • Maximum 40 hours per week
  • Minimum 30-minute meal interval
  • Typical working hours are 08h30/09h00 to 16h30/17h00, Monday to Friday
Overtime
  • Maximum working hours of 50 hours per week and 180 per year (including overtime)
Notice Period
  • Employed between 0 and 1 year- 0.5 months’ notice
  • Employed between 1 and 2 years- 1 months’ notice
  • Employed between 2 and 5 years- 1.5 months’ notice
  • Employed between 5 and 10 years- 2 months’ notice
  • Employed between 10 and 20 years- 2.5 months’ notice
  • Employed for 20 or more years- 3 months’ notice
Severance Pay
  • After employment of at least 2 years, severance pay for each year of employment is a third of the average monthly salary, to a maximum of 6 months’ pay
Probation Period
  • There is no statutory probation period
  • It is common to have a probation period of 6 months 
Bonus
  • There is no statutory bonus
  • It is common to provide performance bonuses
Public Holidays

Public Holidays 2022

  • January 1st – New Year’s Day
  • January 6th – Epiphany
  • April 17th – Easter Sunday
  • April 18th – Easter Monday
  • May 1st – Labour Day
  • May 30th – Statehood Day
  • June 16th – Corpus Christi
  • June 22nd – Day of Antifascist Struggle
  • August 5th – Homeland Thanksgiving Day
  • August 15th – Assumption of Mary
  • November 1st – All Saints’ Day
  • November 18th – Remembrance Day
  • December 25th – Christmas Day
  • December 26th – St Stephen’s Day
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Leave

Paid Leave / Vacation Days
  • Paid leave
  • Paid by employer
  • 4 weeks per year
Sick Leave
  • Paid leave
  • Paid by employer and Social Security
  • There is no defined period of entitlement for sick leave per year
Maternity Leave
  • Paid leave
  • Paid by Social Security
  • 6 months per year
Paternity Leave
  • Part of parental leave
Parental Leave
  • Paid leave
  • Paid by Social Security
  • 8 months for the first and second-born child and 30 months for twin children and subsequent children, until the child is 8 years old
Leave for the death of a child
  • Paid leave
  • Paid by Social Security
  • Duration equivalent to maternity or parental leave
Leave for a disabled child
  • Paid leave
  • Paid by Social Security
  • Entitled to child care leave or the right to have the work day shortened until the child reaches 8 years of age 
Adoption Leave
  • Paid leave
  • Paid by Social Security
  • 6 months per year
Personal Leave
  • Paid leave
  • Paid by employer
  • 7 days per year
Start hiring in Croatia today!