Croatia
Make employment in Croatia easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in , all in one easy-to-use platform.
- Capital city
Zagreb
- Currency
Euro (€, EUR)
- Languages
Croatian
- Population size
4,058,165
Facts & Stats
- Capital city
Zagreb
- Currency
Euro (€, EUR)
- Languages
Croatian
- Population size
4,058,165
- 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)
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.
Grow your team in Croatia with Remote
Looking to employ workers in Croatia? Companies hiring in Croatia must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Remote can employ your team in Croatia on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Croatia team. You can also pay contractors now in Croatia with Remote.
Risks of misclassification
Croatia, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Croatia may lead to fines and penalties for the offending company.
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.
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 4 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.
14 Public holidays
Competitive benefits package in Croatia
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:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Taxes in Croatia
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Croatia.
16.5%
health insurance contribution
Types of Leave
Employees are entitled to at least 20 paid working days off work.
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.