Salary Calculator
Croatia

Our payroll calculator for Croatia helps businesses estimate employee net salaries by factoring in gross earnings, mandatory contributions, and tax regulations.

Simply enter the employee’s gross salary, and the calculator will automatically deduct both employer and employee contributions for health insurance and pension, followed by income tax calculations.

After applying all statutory deductions, the calculator provides the final net salary—giving businesses a clear view of payroll costs and ensuring compliance with Croatia’s tax and labour laws.

The total cost of salary in Croatia involves a couple of components, including contributions for the employer and the employee and an income tax rate. 

The gross salary is the amount before any deductions and serves as the base for all further calculations. Employers are required to pay 16.5% of the gross salary for health insurance, which covers medical expenses and social health programmes. 

Employee contributions are also deducted from the gross salary. This includes 15% for the first pillar of pension insurance and 5% for the second pillar. Employees are also subject to income tax calculated progressively based on their income and their specific location. A personal tax allowance is also deducted from the taxable income to provide relief before the income tax calculation. 

These components collectively determine the total employer cost and the employee’s net salary in Croatia. 

Income tax in Croatia is calculated progressively, with rates and thresholds subject to periodic adjustments. As of January 1, 2025, there have been significant changes implemented in the income tax structure. 

-Lower tax rate - municipalities can set rates between 15% and 20%, smaller towns up to 21%, larger towns up to 22%, and Zagreb, the capital, up to 23%.

-Higher tax rate - municipalities can set rates between 25% and 30%, smaller towns up to 31%, larger towns up to 32%, and Zagreb up to 33%.

-The threshold for applying the higher income tax rate has been raised from €50,400 to €60,000.

*Please note that these rates can vary based on legislative changes.

According to the Croatian labour law, employers and employees must contribute to the social security system, which provides a wide variety of benefits. This includes health insurance covering medical services, hospital stays, medications under Croatia’s universal health system, and sick leave benefits; pension insurance under the dual-pillar pension system; and unemployment benefits in the form of financial support from the state. 

Employed individuals in Croatia are also entitled to benefits like annual leave, public holidays, paid sick leave, maternity leave, parental leave, and severance pay. 

Employers in Croatia can also provide additional non-taxable benefits. This may include meal vouchers or monthly meal allowances, transportation reimbursement, education and training expense coverage, and workplace wellness programmes such as gym memberships and health checkups. 

In addition to this, some employers in Croatia offer extra benefits to increase employee satisfaction, including performance bonuses, private health insurance, and gifts and holiday bonuses such as “13th salary” during the holidays. 

The gross and net salaries in Croatia differ due to the mandatory deductions required by the country’s tax and social security system. 

The gross salary is the total agreed-upon amount between the employer and the employee before any deductions are made. This amount serves as the base for calculating contributions and taxes. 

After all the deductions are made from the gross salary, the employee gets an amount which is the net salary. The net salary is the actual take-home pay available for personal use.