Your quick guide on talent and labor compliance norms in Croatia
Croatian Kuna (HRK)
GDP per Capita
Croatia has proven its economic resilience as they maintain its high-income economic status. The country had an impressive economic comeback in the first 9 months of 2021, earning a total of 13.3 Billion euros. Their success was due to their tourism sector, which makes up 19.6% of Croatia’s GDP.
Major economic hubs:
Zagreb, Split, Rijeka
Skills in demand:
Construction, manufacturing, Hospitality Sector, Healthcare, Administration, and IT services.
The top five universities of Croatia are as follows:
Below are the monthly average salaries in Croatia:
|Job Title||Average Monthly Salary (HRK)||Average Monthly Salary (USD)|
|Business Development Manager||23,000||3,383|
Salaries in Croatia are paid monthly. The pay for the previous month must be released no later than the 15th day of the following month.
The minimum wage in Croatia is HRK 5,274.17 per month.
A full-time employee has to work a maximum of 42 hours per week in Croatia. The overtime rate is mandatory and can be stipulated by a collective bargaining agreement, employment agreement or decided by the employer.
A 13th-month pay is not statutory in Croatia
Employees in Croatia participate in the country’s pension scheme, while employers contribute to the government’s health insurance on their behalf. Moreover, employers may choose to offer supplementary benefits for their workers:
|Type of Contribution||Rate|
|Type of Contribution||Rate|
|Pillar 1 : Intergenerational Solidarity||15%|
|Pillar 2: Individual Capitalised Savings||5%|
|Annual Income Bracket||Rate|
|0 – 360,000 HRK||20%|
|360,000 HRK and over||30%|
The Croatia sales tax rate is at 25%.
Offboarding & Termination
According to Croatia’s labor laws, termination of employment occurs in the following circumstances:
Termination of any reason must be documented in writing by either party.
The Notice Period in Croatia varies depending on whether an employee is under probation or not. Generally, a notice period of 2 weeks is observed but probationary employees are given only up to 7 days.
Employees in Croatia are entitled to severance pay as long as their reason for termination is not due to misconduct. They will be paid for each year of service, and the amount shall be agreed upon by the employer, provided that it should not be less than the computation:
⅓ x average monthly salary (of 3 months before termination = Severance pay
Visa and Immigration
Foreigners seeking to be employed in Croatia shall apply for a work and residence permit. However, European Union members may be exempted from these documents.
Employers will be responsible in applying for their employee’s work permits. Before doing so, they must reach out to the Croatian Employment Service for a labor market test. This is to justify the foreign nationals’ employment with a company against the country’s labor market.
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