Your quick guide on talent and labor compliance norms in Croatia
Capital
Zagreb
Currency
Croatian Kuna (HRK)
Languages
Croatian
Payroll Frequency
Monthly
GDP per Capita
$21,648.72
Employer Tax
16.5%
Talent Overview
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.
Local Universities
The top five universities of Croatia are as follows:
Local: 1
World: 582
Local: 2
World: 2022
Local: 3
World: 2059
Local: 4
World: 2865
Local: 5
World: 3051
Salary Data
Below are the monthly average salaries in Croatia:
| Job Title | Average Monthly Salary (HRK) | Average Monthly Salary (USD) |
| Financial Manager | 29,900 | 4,398 |
| General Manager | 25,300 | 3,721 |
| Business Development Manager | 23,000 | 3,383 |
| Financial Analyst | 17,800 | 2,618 |
| Business Analyst | 18,700 | 2,751 |
| Project Manager | 15,700 | 2,309 |
When looking into the labor market in Croatia, the first step that employers must take is to be acquainted with the country’s employment laws and regulations. Below are some of the policies that Croatia observes for their local employees.
Contracts for employees must be in writing and should contain the complete details of the employment. Preferably, employment contracts must be in the Croatian language. In some cases where contracts are bilingual, one of the languages used must be Croatian.
The Probation period for employees in Croatia is up to one month.
| Date | Name | Type |
| 1 Jan | New Year’s Day | National holiday |
| 6 Jan | Epiphany | National holiday |
| 31 Mar | Easter Sunday | National holiday |
| 1 Apr | Easter Monday | National holiday |
| 1 May | Labor Day / May Day | National holiday |
| 30 May | Corpus Christi | National holiday |
| 30 May | Statehood Day | National holiday |
| 22 Jun | Day of Anti Fascist Struggle | National holiday |
| 5 Aug | Victory Day | National holiday |
| 15 Aug | Assumption of Mary | National holiday |
| 1 Nov | All Saints’ Day | National holiday |
| 18 Nov | Remembrance Day | National holiday |
| 25 Dec | Christmas Day | National holiday |
| 26 Dec | St Stephen’s Day | National holiday |
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 15 days | Yes |
| Sick Leave | 42 days | Yes |
| Maternity Leave | 98 days | Yes |
Payroll
Payroll Cycle
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.
Minimum Wage
The minimum wage in Croatia is HRK 5,274.17 per month.
Overtime Pay
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.
Bonus
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:
Taxes
| Type of Contribution | Rate |
| Health Insurance | 16.5% |
| 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.
