Hiring in Croatia

Contributions & taxes

How much are the contributions & taxes?

Employer tax

The standard estimate for employer contributions is 16.5% of employee’s gross salary, which funds health insurance, worker’s accident insurance and unemployment.

Corporate tax

In Croatia, the corporate tax rate is 18%.

Employee tax

For each employee’s paycheck, 15.00% goes to Generation Solidarity (Pillar I), and 5.00% goes to Individual Capital (Pillar II).

Income tax

Income tax rates for individuals are between 20% and 30%. The calculation of income tax is done using progressive rates. There can also be local municipal taxes.

Payroll

What is the payroll cycle?

Monthly salary payments are made no later than the 15th day of the following month.

Is there a 13th salary in Croatia?

Currently, the legal framework does not address the 13th salary.

Labor rules

What are the main labor rules?

Probation period

The length of probation is specified in the employment contract and varies with the nature of the position. Probationary periods often last no more than a year.

Notice period 

Whether an employee is temporary or permanent, their notice time will vary based on their duration of service:

• 2 weeks: Employees who have been with the company less than a year;
• 4 weeks: Employees who have been with the company for 1 year;
• 6 weeks: Employees who have been with the company for 2 years;
• 8 weeks: Employees who have been with the company for 5 years;
• 10 weeks: Employees who have been with the company for 10 years;
• 12 weeks:  Employees who have been with the company for 20 years.

For workers over the age of 50, the necessary notice period increases to four weeks, and for those over the age of 55, it expands to eight weeks.

Severance period

The length of service is a factor in determining severance pay. Employees with two or more years of service receive severance pay equal to 33% of their regular monthly pay rate for each year of service, up to a maximum of six months’ salary.

Working hours

In Croatia, a typical work week spans 5 or 6 days and clocks in at 40 hours. If an employer wants workers to put in more time at the office, they need to inform the employee about the need for overtime work. Overtime is permitted up to 10 hours per week, or 180 hours per year.

Only special groups of employees must submit their consent to overtime work, namely: a pregnant women, a parent with a child up to eight years of age, and a part-time worker with several employers.

However, consent is not required even for these groups of employees in case of force majeure.

Leave and benefits

Leave and benefits rules

Public holidays

There are 14 official holidays in Croatia:

1. New Year’s day
2. Epiphany
3. Easter Sunday
4. Easter Monday
5. Labor day
6. Statehood day
7. Corpus Christi
8. Anti-Fascist Struggle day
9. Victory day
10. Assumption day
11. All Saints day
12. Remembrance day
13. Christmas day
14. St. Stephen’s day

Sick leave

An employee is entitled to up to 42 days of sick leave per year, paid at 70% of a regular wage. The health insurance fund of Croatia will reimburse the employer for any sick leave that lasts more than 42 days.

Maternity leave & paternity leave

Women are eligible for 28 days of paid maternity leave before the due date, with the possibility of an increase to 45 days, depending on a medical evaluation. There is a maternity leave policy in place that guarantees the woman 70 days of full pay after the birth of her kid.

Mothers can take an additional 70 days of unpaid leave once their child is born or split the time with their partners.

The father is not entitled to any sort of paid leave for parenting responsibilities. However, if the mother is unable to care for the kid for any reason, the father is allowed to take over the mother’s 70 days of leave. In addition, the woman may transfer the remaining leave to the father after day 70 after giving birth.

Other leave

Parental leave

Employees are entitled to 120 days of paid parental leave for any kid under the age of eight, and they must use this time off before the child turns nine. Parental leave can be taken entirely, split into two halves (per year), or taken part-time, with the latter option doubling the leave’s duration but halving the pay.

Adoption leave

If the adopted kid is under the age of twelve, one of the adoptive parents is entitled to an unpaid leave of 270 consecutive days beginning on the date of adoption.

Bereavement leave

In the event of the loss of a close family member, employees are eligible for up to seven days of paid absence. Those listed below are regarded to be direct relatives: spouse, blood relatives, and their spouses, siblings and sisters, step- and adopted- and foster-children, step- and adoptive- and foster-parents, persons whom the employee is entitled to support under law, and a common-law spouse.

What are the minimum vacation days?

Full-time and part-time workers receive the same annual allotment of 20 paid vacation days. Time off accumulates at a rate of 1.67 days per month, adjusted for part-time workers.

Insurance

Health security & private insurance

Croatia’s health insurance is mandatory and included in the employer’s social insurance. With that in mind, it is not common for employers to provide additional private health care coverage.

*Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices.*

Visa

Relocation and work permits

Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.

How long is the visa/work permit process?

2 to 4 weeks depending on the authorities and provided documents.

Which documents do you need?

To apply for a visa/work permit in Croatia, upload the documents from our onboarding list (relocation to log in/pricing).

Why use Native Teams for hiring in Croatia?

Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:

• No paperwork: We will handle all the necessary paperwork for you.
• Save on taxes: We help you handle your taxes.
• No company set up: You can expand your business using our company entitles.
• Online onboarding: We’re here to ensure your onboarding process is trouble-free.
• No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
• Increase your profit: We assist you in growing your business and maximizing your profits.
• Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
• Local support: We can assist you in understanding and complying with the relevant local laws.

*Note: The provided information was accurate at the time of writing.