Remote’s guide to employing in Croatia.
Remote-Owned Local Entity
We own our own entity in the countries where we operate to shield your company from risk and provide you and your employees with the signature Remote experience.
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.
4,058,165 (est. 2020)
Ease of doing business
Cost of living index
56.36 (45 of 139 nations)
VAT - standard rate
GDP - real growth rate
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.
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.
|Saturday, January 1, 2022||New Year's Day|
|Thursday, January 6, 2022||Epiphany|
|Sunday, April 17, 2022||Easter Sunday|
|Monday, April 18, 2022||Easter Monday|
|Sunday, May 1, 2022||Labor Day|
|Monday, May 30, 2022||Statehood Day|
|Thursday, June 16, 2022||Corpus Christi|
|Wednesday, June 22, 2022||Anti-Fascist Struggle Day|
|Friday, August 5, 2022||Victory Day|
|Monday, August 15, 2022||Assumption of Mary|
|Tuesday, November 1, 2022||All Saints' Day|
|Friday, November 18, 2022||Remembrance Day for the victims of the Homeland War and Remembrance Day for the victims of Vukovar and Škabrnja|
|Sunday, December 25, 2022||Christmas Day|
|Monday, December 26, 2022||St Stephens Day|
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.
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.
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.
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
Our benefits packages in Croatia are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Croatia.
16.5% - health insurance contribution
12% - up to 3 million HRK
18% - 3 million HRK and above
20% - social security contribution
15% - pillar 1 pension contribution
5% - pillar 2 pension contribution
20% - for income up to HRK 360,000 annually (up to HRK 30,000 monthly)
30% - for income above HRK 360,000 annually (above HRK 30,000.00 monthly)
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%.
Employees are entitled to at least 20 paid working days off work.
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.
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.
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.
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.
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.
The statutory notice period depends on an employee’s tenure with the employer’s organization.
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.
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 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.