Hire employees in Croatia
With Nomad Global Hire PEO / EoR (Employer of Record) services, you can easily hire employees in Croatia, without having to set up your own entity. No risk and fully compliant with HR support included
What to know about Croatia
Croatia has a lot of young talent with great digital skills
Employer Tax
Estimated at 16.5%
Currency
EUR, Euros
Available Employee Benefits
Medical insurance, Meal Vouchers, Christmas Bonus
Employee Tax
Incremental up to 30%
Payroll Frequency
Monthly over 12 payments
Main Universities
University of Split, University of Zagreb, University of Rijeka.
Capital
Zagreb
Population
Circa 4 Millions
Available Contracts
Fixed Term Contract, Indefinite/Permanent
Croatia is not only a fantastic tourism destination and home to some of Games of Thrones characters, Croatia is also a young country bursting with trained skilled workers, innovation and investment. Companies who where once startups are not Unicorns (Ifobip) or have brought new technological advances in the food industry (Agrivi) or Electric super cars (Rimac Automobili). You can recruit directly or partner with local recruitment agencies (we can help find the right one), and NOMAD will manage the local employment for your new employees
Payroll, Benefits & Tax in Croatia
- Average Salary in Croatia is 7,914 HRK per Month so around 1,050 Euros.
- Employer Tax in Croatia is usually 16.5% and covers Health Insurance.
- Employee Tax in Croatia is incremental up to 30%:
- Income tax is 20% for earnings up to 47,780 Euros or 360,000 HRK,
- Income Tax is then at 30% for earnings over this amount.
- Overtime in Croatia has to be paid by law.
- Payroll Frequency in Croatia is Monthly over 12 months.
- Maternity Leave in Croatia is up to 98 paid days. The Mother has to take 28 days weeks before the birth date and 70 days after the birth of the child. During this time, leave is paid at by the Croatian Health Insurance at 100%
- Paternity Leave is not a requirement in Croatian Labor law and it is at the discretion of the employer.
- Parental Leave is up to 8 months in Croatia and only one parent can use it.
- Sick Leave is covered for up to 42 days per year which are paid by the employer at 70%.
- Statutory Leave is 20 days minimum per year in Croatia.
- Bank holidays: there are 14 national days in 2023 in Croatia.
- Termination can only be done for a valid cause in Croatia, see below.
- Notice period is depending on the length of service of the employee in the business.
- Learn more about EOR Employment Contract Termination in Croatia here
The Croatian Labor Code is setting the framework for employment in Croatia. This covers all individual and collective working relationships, Compensation and Benefits, Workers rights as well as Leave (Sick, Parental), employment Termination and Discrimination. Please note that Croatia adopted the EURO as its currency since 1st of January 2023.
Onboarding and Termination in Croatia
- Probation period are not mandatory under Croatian Labour Law
- Probation period in Croatia is allowed but cannot exceed 6 months
- You can hire through Fixed Term Contracts, Indefinite / Permanent contract or BtoB contracts
- Employment Contracts are drafted in Croatian, but can also be in English (but then has to be both languages at the same time)
- Termination is Croatia is generally a complicated process and requires particular care. In order to be compliant, Termination can only occur for just cause as such:
- By mutual agreement
- By resignation of the employee
- By expiration of contract
- By the employer on grounds of disciplinary dismissal, failure to perform due to ability or end of the activity/role
- It is always advised to reach a Mutual Agreement to validate a Termination in Croatia
- The minimum notice period in Croatia is incremental based on the length of service: 7 days in probation period, 2 weeks in the first year, 6 weeks for 2 years, 8 weeks past 5 years
- Severance payments in Croatia are mandatory in case the employer terminates the contract and the employee has been employed for 2 years, or if the dismissal reason is not behavioral. Severance payment will be calculated based on the length of service, but cannot be superior to 6 months salary payments. The basis for calculation is:
- 1/3 of the employees average monthly salary X Number of years of employment
- For more detailed information on how to Terminate an employment contract in Croatia, please see this article on our Resources page
Fixed Management Fee
We charge a fixed monthly fee depending on the level of the salary of the hired employee
- Local Contract Management
- Payroll Management
- Tax and Compliance
- HR Support
Employee Nomad set up fee
Everything to get you started on Nomad and ensure piece of mind for you and your new hire
- Sign up to the NOMAD Services
- Benefits Setup (if available)
- Tax authority liaisons
- An additional Deposit of 1 full month salary cost will be required
Estimated Employer tax costs
Employer Tax in Croatia is estimated around 16.5% (may vary depending on circumstances)
- Health insurance
- Not applicable if employee hired on Indefinite contract and under 30
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