Hire employees and contractors in Croatia

Remote’s guide to employing in Croatia.

  • Capital city

    Zagreb

  • Currency

    Croatian kuna
    (kn, HRK)

  • Population size

    4,058,165
    (est. 2020)

  • Languages spoken

    Croatian

Facts & Stats

The Republic of Croatia (Republika Hrvatska) is a parliamentary republic nestled across Central and Southeast Europe. Croatia is home to the stunning port city of Dubrovnik, the world’s largest truffles, and a glittering coastline dotted with idyllic islands. The nation has a proud history of innovation as the birthplace of Nikola Tesla, Marco Polo, and the modern pen.

Croatia hosts the 43rd highest human development index in the world, driven by a strong social security system, free education, universal healthcare, and a high per capita income— all of which are factors that make the nation an attractive location for digital nomads and remote workers.

  • Capital city

    Zagreb

  • Currency

    Croatian kuna
    (kn, HRK)

  • Languages spoken

    Croatian

  • Population size

    4,058,165 (est. 2020)

  • Ease of doing business

    Very easy

  • Cost of living index

    56.36 (45 of 139 nations)

  • Payroll frequency

    Monthly

  • VAT - standard rate

    25%

  • GDP - real growth rate

    2.9 (2019)

Grow your team in Croatia with Remote

To employ in Croatia, companies must own a local legal entity in the country or work with a global employment solution. Managing payroll, benefits, taxes, and compliance in Croatia can get complicated, especially without established local relationships.

Remote’s global employment solution makes it easy for your company to employ workers in Croatia quickly, efficiently, and in full compliance with all applicable labor laws. We take on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.

Risks
of misclassification

Croatia, like many other countries, treats self-employed individuals or contractors and full-time workers differently and there are risks associated with misclassification.

Employing in Croatia

The Croatian Labor Act is the definitive authority on issues regarding employee protections, workers’ rights, and generally all labor relations for Croatia’s workforce of 1.7 million. Employees in Croatia enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Croatia.

Public holidays

Date
Holiday Name
Saturday, January 1, 2022New Year's Day
Thursday, January 6, 2022Epiphany
Sunday, April 17, 2022Easter Sunday
Monday, April 18, 2022Easter Monday
Sunday, May 1, 2022Labor Day
Monday, May 30, 2022Statehood Day
Thursday, June 16, 2022Corpus Christi
Wednesday, June 22, 2022Anti-Fascist Struggle Day
Friday, August 5, 2022Victory Day
Monday, August 15, 2022Assumption of Mary
Tuesday, November 1, 2022All Saints' Day
Friday, November 18, 2022Remembrance Day for the victims of the Homeland War and Remembrance Day for the victims of Vukovar and Škabrnja
Sunday, December 25, 2022Christmas Day
Monday, December 26, 2022St Stephens Day

Minimum Wage

The minimum wage is regulated by the Minimum Wage Act and is equal to the payment an employee receives for working 40 hours a week over a month. The minimum wage is currently set at 4,250 HRK (€560) per month.

Payroll Cycle

For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Onboarding Time

We can help you get a new employee started in Croatia fast. The minimum onboarding time we need is only 14 working days.

Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.

For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.

Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.

Competitive benefits package in Croatia

Remote can help you provide a competitive and compliant benefits package for your employees in Croatia. If you have questions or would like to offer a custom benefit, let us know and we can help.

  • Medical insurance plan
  • Dental insurance plan
  • Vision insurance plan
  • Additional paid holidays
  • Flexible work schedule
  • Pension scheme
  • Life insurance
  • Other insurance

Taxes in Croatia

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Croatia.

  • Employer

    • 16.5% - health insurance contribution

  • Corporate taxes

    • 12% - up to 3 million HRK

    • 18% - 3 million HRK and above

  • Employee

    • 20% - social security contribution

    • 15% - pillar 1 pension contribution

    • 5% - pillar 2 pension contribution

  • Income Tax

    • 24% - for income up to HRK 360,000

    • 30% - for income above HRK 360,000

Local surtax is payable over and above the national income tax amount. The exact rate of the local surtax depends on the employee’s place of residence (i.e. the town or municipality). Currently the local surtax rate in Croatia ranges from 0% to 18%.

Types of leave

Paid time off

Employees are entitled to at least 20 paid working days off work.

Public holidays

Croatian labor law mandates that employees are entitled to take the 15 national holidays off, in addition to their paid vacation entitlement.

Religious employees can take additional days off in lieu of religious observances such as Yom Kippur, Rosh Hashanah, Eid-el-Fitr, etc. Additionally, employers can enter into negotiations to have employees work on a holiday as long they’re compensated as agreed.

Sick leave

Sickness benefits (equivalent to, at least, 70% of the employee’s normal wages) are paid out to ailing employees for up to 42 days of an illness, after which the employee can draw a benefit from the health insurance fund.

Maternity leave

Croatia offers generous maternity benefits that both parents can exercise. Female employees are entitled to 98 – 115 days of paid maternity leave, starting 28 days (for the 98-day entitlement) before delivery, or 45 days (for the 115-day entitlement), in case of pregnancy complications.

After delivery, a postpartum mother is entitled to at least 70 days off work, or until the newborn turns six months of age.

Paternity/Parental leave

There are no specific provisions for paid paternity leave, but a father can exercise some or all of the mother’s maternity leave entitlement after the 70-day minimum postnatal leave, with the mother’s permission.

Likewise, employees are entitled to 120 days of parental leave per child (for first and second children) once each child turns six months of age.

The parental leave entitlement can be enjoyed in batches or at a stretch and is compensated at 50% of the full-time leave rate until the child reaches eight years of age.

Other leave

  • Adoption leave: Adoptive parents can take 6 months of parental leave starting when an adoption decision is finalized and extending up to an entire year off if the child is below the age of eight.
  • Marriage & bereavement: Employees can take up to seven days off annually for important personal functions such as marriage functions or attending a relative’s funeral.

Employment termination

Termination process

Employee contracts can be terminated if a just cause is established, such as dishonesty, negligence, fraud, or any other work-related offenses.

No matter the reason for an employee’s termination, the employer is expected to provide written notice in advance.

Notice period

The statutory notice period depends on an employee’s tenure with the employer’s organization.

  • 2 weeks: employees with one year of service
  • 6 weeks: employees with two years of service
  • 8 weeks: employees with five years of service
  • 10 weeks: employees with 10 years of service
  • 12 weeks: employees with 20+ years of service

The notice period can either be limited to just 30 days, if an employer provides a valid justification, or halved if an employee breaches terms spelled out in the employment contract.

Severance pay

Employees who have worked at least two years with an employer are entitled to a severance package, equivalent to a third of a month’s wages per year of employment.

For instance, an employee who has worked with an employer for 12 years will be entitled to four months’ wages upon severance.

Probation periods

Probation periods are agreed upon by both parties and cannot exceed a year. We recommened that probation periods should not exceed 6 months and it is common to give 1 weeks notice during termination in probation period.

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