Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - Croatia

Your quick guide on talent and labor compliance norms in Croatia
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Capital
Zagreb
Currency
Croatian Kuna (HRK)
Languages
Croatian
Payroll Frequency
Monthly
GDP per Capita
17,222.7 USD
Employer Tax
16.5%

Supplementary Guide for Employment and Expansion in Croatia

Talent Overview

Croatia has proven its economic resilience as they maintain its high-income economy 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;

Sveucilište u Zagrebu (University of Zagreb)

RANKING

Belarus : 1

World : 553

Sveucilište u Rijeci (University of Rijeka)

RANKING

Belarus : 2

World : 2499

Sveucilište u Splitu (University of Split)

RANKING

Belarus : 3

World : 2879

Sveucilište u Zadru (University of Zadar)

RANKING

Belarus : 4

World : 3264

Sveucilište Josipa Jurja Strossmayera u Osijeku (Josip Juraj Strossmayer University of Osijek)

RANKING

Belarus : 5

World : 3911

Salary Data

Below are monthly average salaries in Croatia

No. Job Title Salary Range (in HRK) Salary Range (in USD)
1 Product Development Engineer 6,370 - 22,000 913.07 - 3,153.44
2 Developer / Programmer 6,790 - 23,500 973.27 - 3,368.45
3 Data Analyst 6,280 - 21,700 900.16 - 3,110.44
4 UX Designer 4,530 – 15,700 649.32 - 2,250.41
5 Project Manager 7,240– 25,000 1,037.77 - 3,583.46
6 Sales Manager 12,200 – 42,100 1,748.73 – 6,034.54
7 Accounting and Finance 6,180 - 30,700 885.83 – 4,400.49

Talent Sourcing Tips

Top Local Job Boards: 

MojPosao , posao.hr, bika.net

Number of LinkedIn users:

745,000

Top Recruitment Agencies:

Selectio, Profesio, Dekra

Employing in Croatia

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. 

Employee Contract

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.

Probation Period

The Probation period for employees in Croatia is up to one month.

Public and Provincial Holidays

Date Name Type
1 Jan New Year's Day National holiday
6 Jan Epiphany National holiday
17 Apr Easter Sunday National holiday
18 Apr Easter Monday National holiday
1 May Labor Day / May Day National holiday
30 May Statehood Day National holiday
16 Jun Corpus Christi National holiday
22 Jun Day of Antifascist 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

Employee Leaves

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.

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Minimum Wage:

The minimum wage in Croatia is HRK 4,687.50 per month.

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Overtime Pay:

The overtime rate is mandatory and can be stipulated by a collective bargaining agreement, employment agreement or decided by the employer.

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Health Examination Clause

Bonus

13th Month Pay: 

A 13th-month pay is not statutory in Croatia

Employee Benefits: 

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:

  • ~Unemployment benefits
  • ~Life Insurance
  • ~Accident Insurance
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Taxes

Employer Payroll Tax:

Type of Contribution Rate
Health Insurance 16.5%

Employee Payroll Tax:

Type of Contribution Rate
Pillar 1 : Intergenerational Solidarity 15%
Pillar 2: Individual Capitalised Savings 5%

Employee Income Tax:

Annual Income Bracket Rate
0 - 360,000 HRK 20%
360,000 HRK and over 30%

VAT:

The Croatia sales tax rate is at 25%

Offboarding & Termination

Termination Process

According to Croatia’s labor laws, termination of employment occurs in the following circumstances:

  • ~Upon the death of the employee;
  • ~Upon expiry of the period of time covered by an employment contract for a definite period;
  • ~When the employee reaches the age of 65 and has 20 years of service covered by pension insurance;
  • ~Upon the delivery of a valid decision on retirement due to work disability;
  • ~Under an agreement between the employee and the employer;
  • ~By giving notice
  • ~By a decision of a competent court.

Termination of any reason must be documented in writing by either party.

Notice Period

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.

Severance Pay

Employees in Croatia are entitled to a 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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