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Europe

Croatia

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Employer of Record (EOR) in Croatia

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • Termination Process
  • Additional Information
Croatia Introduction

Croatia is a country in Europe bordered by Slovenia, Hungary, Serbia, Bosnia and Herzegovina, and Montenegro. It boasts a long coastline filled with 1,244 idyllic islands (only about 47 are inhabited). Croatia has free education, universal healthcare, and a high income per capita, —which makes it an attractive location for remote workers.

Paid Leave and Statutory Leave

Parental Leave

Pregnant employees in Croatia are entitled to 28 days of paid maternity leave before the due date, and 70 days after the birth. After the 70 days are complete the maternity leave can be continued unpaid until the child is 6 months old (although most employers pay this extra time), or choose the share the rest of the leave with the other parent. There is no provision for statutory paternity leave in Croatia. Each parent also is also entitled to 120 days of parental leave per child, to be taken before the child is 8 years old.

Sick Leave

An employee in Croatia can receive up to 42 days of sick leave each year that is paid by the employer at a rate of 70% of the regular wages. Any days past the first 42 days are paid by the employer but then reimbursed by Croatia’s health insurance fund.

Paid Leave

Croatia has 14 public holidays, and employees are generally entitled to between 15-20 days of paid time off each year (depending on how long they have worked at the company). Employees can also request adoption leave, marriage leave, or bereavement leave.

Wage Requirements and Working Hours

The minimum wage in Croatia is HRK 4,687.50 per month. The standard workweek is 40 hours, and employers need written permission from their employees to increase working hours. Any work past 40 hours is overtime, and the rate is stipulated in the contract (with a maximum of 180 hours per year).

Termination Process

Process

Terminations in Croatia require a notice period unless there is cause for dismissal without notice, due to misconduct, negligence, and other reasons. If misconduct is the reason for termination there must be written notice and documented discussions and meetings with the employee before the final decision to terminate the contract.

Notice Period

The notice period required depends on the employee’s length of time at the company, with 2 weeks of additional notice required for employees 50-55, and 4 weeks for those 55+.

  • 1 year = 2 weeks
  • 2 years = 6 weeks
  • 5 years = 8 weeks
  • 10 years = 10 weeks
  • 20 years = 12 weeks

Severance Pay

Severance pay owed also depends on the length of employment at the company. Employees who have worked at a company for 2+ years are paid 1/3 of their monthly salary for each year worked (with a maximum of 6 months of salary).

Additional Information

N/A

OVERVIEW
Language(s):
Croatian, Serbian, Bosnian
Currency:
Croatian Kuna (HRK)
Capital City:
Zagreb
Population:
4 Million
Cost of Living Rank:
60th
VAT (Valued Added Tax):
25%
Employer TaxES
16.5%
(estimated)

★  16.5% - Health Insurance

Simplified Global HR and Payroll.
Let’s work on it together.

We've made the process really simple
with only 3 steps.

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
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How Remofirst employs in Croatia

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Croatia get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Croatia are paid on time in Croatian Kuna (HRK). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Croatia, they can use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.