Discover the global hiring and employment landscape in Croatia—boasting a growing economy, strategic location in the European Union, and a skilled, multilingual workforce. Croatia offers numerous opportunities for businesses looking to expand in Southeast Europe.
Explore the employment essentials including payroll, personal income tax, statutory contributions, annual leaves, minimum wage, terminations, visa requirements, and more. Gain valuable compliance insights for a smooth entry into the dynamic Croatia market with Slasify's global premium HR platform.
| Capital | Zagreb |
| Currency | Euro (EUR) |
| Payroll Cycle | Monthly |
| Minimum Wage | EUR 840 per month |
| Annual Leave | 4 weeks |
| Personal Income Tax | 15%–35.4% |
Personal income tax rates in Croatia varies across its localities as local governments are empowered to choose the range of progressive tax rates that apply to their residents.
| Taxable Income (EUR) | Progressive Tax Rate (%) |
|---|---|
| Up to 50,400 | 15–23.6 |
| Over 50,400 | 25–35.4 |
Local government units have until November 30 of the current year to choose the rates applicable as of January 1 of the following year. They can choose between a lower rate and a higher rate, as follows:
| Localities | Lower rate | Higher rate |
|---|---|---|
| Municipality | 15%–22% | 25%–33% |
| Town (<30,000 inhabitants) | 15%–22.4% | 25%–33.6% |
| Town (>30,000 inhabitants) | 15%–23% | 25%–34.5% |
| City of Zagreb | 15%–23.6% | 25%–35.4% |
Where a local government unit does not make a choice by the set deadline are subject to progressive tax rates of 20% and 30%.
There are no local taxes on employment income in Croatia.
An employee's contribution for Pillar I and Pillar II pension shall be calculated on the following basis:
| Monthly gross salary (EUR) | Contribution base (EUR) |
|---|---|
| Up to 700 | Monthly gross salary - 300 |
| 700.01–1,300 | Monthly gross salary - [0.5 * (1,300 - Monthly gross salary)] |
| Over 1,300 | Monthly gross salary, subject to a monthly cap of EUR 9,360 |
The employer's contribution for health insurance are calculated based on the employee's gross salary, and they shall not be subject to any cap.
| Contribution rate | |
|---|---|
| Health Insurance | 16.5% |
| Contribution rate | |
|---|---|
| Pension (Pillar I) | 15% |
| Pension (Pillar II) | 5% |
An employee's salary is paid on a monthly basis, and shall be paid no later than the 15th day of the month.
Effective January 1, 2024, the minimum wage in Croatia is set at EUR 840 per month.
There are no statutory bonuses in Croatia.
An employment relationship can be terminated by mutual agreement or by the unilateral decision of one of the parties, provided that the relevant procedures are followed.
| Regular termination with notice | Extraordinary termination without notice | |
|---|---|---|
| Dismissal | Employers can dismiss their employees if there is a justified reason, including the employee's conduct, personal reasons, dissatisfaction during probation and business-related reasons. |
Either party may terminate the employment contract without observing any notice period in the event of a serious violation of the other party's obligations or any other serious reasons. The party to rightfully terminate the employment contract without notice are entitled to demand compensation from the guilty party. |
| Resignation | Employees may resign without specifying any particular reason. |
When dismissing an employee due to their behavior, the following procedures must be followed:
| Regular termination | Extraordinary termination | |
|---|---|---|
| Obligations prior to dismissal |
Warn the employee in writing of their conduct and point out the possibility of dismissal in the event of repeated violation. Employers must allow the employee to present their defense unless there are circumstances making this unreasonable. |
Employers must allow the employee to present their defense unless there are circumstances making this unreasonable. |
| Form of termination | Termination must be made in writing, with the employer explaining their decision to dismiss. | Termination must be made in writing, with the employer explaining their decision to dismiss. |
In case of a regular termination, the notice period to be observed shall be as follows:
| Length of service | Notice Period |
|---|---|
| Less than a year | 2 weeks |
| 1–2 years | 1 month |
| 2–5 years | 1 month and 2 weeks |
| 5–10 years | 2 months |
| 10–20 years | 2 months and 2 weeks |
| 20 years and above | 3 months |
Older employees who have at least 20 years of service shall be entitled to additional notice period, as follows:
| Age | Additional notice period |
|---|---|
| 50 years old | 2 weeks |
| 55 years old | 1 month |
In any case, it is important to note that the notice period shall be halved in case of a regular dismissal motivated by the employee's violation of their obligations.
Note: During the notice period, the employee has the right to be on 4 hours of paid leave per week to look for a new job.
Employees who has at least 2 continuous years of service shall be entitled to receive severance upon termination, except when the termination is caused by their behavior.
The amount of severance shall account for the employee's length of service, and they are subject to the following limits:
| Minimum | Maximum |
|---|---|
| 1/3 of the employee's average monthly salary for each year of service | 6 months' salary |
A probationary period may be agreed upon for a duration not exceeding 6 months, and this can only be done for the same job once.
Dissatisfaction with probationary employees is a particularly justified reason for termination during the probationary period. The employer shall be obligated to give their employees a written notice explaining their reasons and shall observe a notice period of at least a week.
Note: For fixed-term employment contracts, the duration of the probationary period must be proportionate to the expected duration of the contract and the nature of the work performed.
Standard working hours for a full-time employee in Croatia are subject to a maximum of 40 hours per week.
Employees who work at least 6 hours per day shall be entitled to a break period of at least 30 minutes, the time of which is included as part of their working hours.
Furthermore, breastfeeding employees, until their child reaches a year of age, shall be entitled to a breastfeeding break period of 2 hours per day. This break period may be split into 2 equal periods of an hour each, and they shall be included in the employee's working time.
In case of force majeure or other cases of urgent needs, the employee may be obligated to work overtime by the employer's written request.
Employees have the right to an increased salary for the performance of overtime work, the amount of which shall be determined by the relevant collective agreement, labor regulations or their employment contract.
Overtime hours are subject to a maximum of 180 hours per year unless otherwise required by a collective agreement, in which case it must not last longer than 250 hours per year. In any case, the employee's total working hours, including overtime, shall not exceed 50 hours per week.
Employees shall be entitled to a daily rest period of 12 consecutive hours and a weekly rest period of 24 consecutive hours that usually falls on Sundays.
Employees who are unable to enjoy their weekly rest periods shall be entitled to compensatory rest days immediately after the end of the period they spent at work. Moreover, these employees shall also be paid at least a 50% premium for each hour worked on their rest days.
Employees have the right to an increased salary for the performance work on holidays, the amount of which shall be determined by the relevant collective agreement, labor regulations or their employment contract. There are 13 days of public holidays in Croatia for 2024.
| Holiday | Date |
|---|---|
| New Year's Day | January 1 |
| Epiphany | January 6 |
| Easter Sunday | March 31 |
| Easter Monday | April 1 |
| Labor Day | May 1 |
| Corpus Christi | May 30 |
| Statehood Day | May 30 |
| Anti-Fascist Resistance Day | June 22 |
| Victory and Homeland Thanksgiving Day | August 5 |
| Assumption Day | August 15 |
| All Saints' Day | November 1 |
| Remembrance Day | November 18 |
| Christmas Day | December 25 |
| St. Stephen's Day | December 26 |
Employees shall be entitled to at least 4 weeks of paid annual leave, and they acquire the right to said leave after 6 months of continuous employment.
Employees who have not fulfilled the necessary conditions to acquire the right to their full annual leave entitlement shall have their leave prorated according to the number of months worked.
Annual leave can be taken in whole or in parts, provided that the employee take at least 2 continuous weeks of leave during the calendar year for which they become entitled to their leave. Any unused portion of the employee's annual leave entitlement can be carried over to the following year, though they must be used by June 30 of that year.
Employees shall be entitled to sick leave in the event of a temporary incapacity due to an illness or an injury, the duration of which shall be determined by the relevant health authority.
Employers are obligated to cover the employee's pay for the first 42 days of sick leave in a year, calculated at 70% of the employee's average wage over the preceding 6 months. This amount may be reimbursed by the relevant state insurance authority.
Employees shall be entitled to 98 days of maternity leave, of which 70 days are taken after the birth of their child. Depending on the state of the employee's pregnancy and health, they may start using maternity leave 45 days before the day of the expected birth.
After the expiration of the mandatory maternity leave, the employee has the right to additional maternity leave until the child reaches 6 months of age, which can be transferred to the child's father with their written statement and consent, in full or for a limited time.
If the child is born prematurely, i.e. before the 37th week or 259th day of pregnancy, the additional maternity leave shall be extended by the number of days for which the child was born prematurely.
Employees shall be entitled to the following paternity leave after the birth of their child, until the child reaches 6 months of age:
| Event | Duration of paternity leave |
|---|---|
| Birth of a child | 10 continuous working days |
| Simultaneous birth of multiple children | 15 continuous working days |
Employees shall be entitled to parental leave once their child has reached 6 months of age, which can be used until the child is 8 years old.
| Duration of parental leave | |
|---|---|
| For the first and second born child | 8 months |
| For the birth of twins, and third and every subsequent child | 30 months |
Parental leave can be used in whole or in parts, though they may not use it more than twice a year, each time lasting at least 30 days.
As a rule, the right to parental leave can be used by both parents for the same duration, i.e. 4 or 15 months each depending on the number of children, with 2 months being non-transferable.
If the parental leave is used by only one parent, it shall be used for 6 months for the first and second born child, or 28 months for twins, and the third and each subsequent child.
| Leave | Paid/Unpaid | Duration | Note |
|---|---|---|---|
| Blood Donation Leave | Paid | 1 day | This leave can be taken on the day of blood donation or the next working day immediately after. |
| Carer's Leave | Unpaid | 5 working days per year | This leave can be taken to provide personal care to their immediate family member or a person living in the same household who needs it due to a serious health reason. |
| Emergency Leave | Paid | 1 day per calendar year | This leave can be taken for an important and urgent family reason caused by illness or an accident. |
| Important Personal Leave | Paid | 7 working days per year | This leave can be taken for important personal reasons, including, but not limited to, marriage, birth of a child and death of a family member. |
| Pre-Natal Examination Leave | Paid | 1 working day per month | For pregnant employees to perform pre-natal examinations. The employer must be notified of the employee's intention to take this leave in writing 2 working days in advance. |
Slasify is a one-stop platform offering Global Payroll, Employer of Record (EOR), and HR Outsourcing functions for the remote working generation. Our proven track record with Forbes Top 100 Companies and dedication to Diversity, Equity and Inclusion (DEI) make us your ultimate payroll partner. Join us on a global HR journey, where we cater to your needs across 150+ countries and unlock HR solutions tailored to you—Book a free consultation now!