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Overview
Euro (EUR)
CURRENCY
Zagreb
CAPITAL
monthly
PAYROLL FRECUENCY
14
PUBLIC HOLIDAYS
0% to 16.50%
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Croatia
Employer
Company Payroll Contributions
*It is worth mentioning that this contribution may increase if companies have more than 20 Croatian employees. In essence, at least 3% of their workforce must include disabled individuals.
On the contrary, they must pay a monthly fee of 30% of the minimal salary for each disabled individual employed.
0% - 16.50%
Health Insurance Contribution*
0% - 16.5%
Total Employment Cost
Employee
Worker Payroll Contributions
0%- 15.00%
Generation Solidarity Contribution (up to EUR 87,734.02 per year)
0%- 5.00%
Individual Capital Contribution (up to EUR 7,311.17 per month)
0% - 20%
Total Employee Cost
Employee Income Tax in Croatia
In addition, Croatian workers can get a monthly allowance of EUR 530 for personal reasons. Furthermore, they can increase it for every child up to EUR 464. Last, they can find a municipal tax in specific cities and municipalities, with a rate of up to 18%.
20%
Worker Income Tax: Less than EUR 47,780.21
30%
Worker Income Tax: More than EUR 47,780.21
Payroll Contributions in Croatia
Payroll Cycle
Indeed, companies like Contractor Management Services providers in Croatia make salary payments once a month. Furthermore, Croatian employees must receive their wages no later than the 15th of the following month.
13th Salary
Like most European Union Countries, Croatia does not have laws and regulations regarding 13th salaries.
Employee Benefit in Croatia
Above all, Croatian employees can get the following common employment benefits:
- Travel and supplementary health insurance plans.
- Voluntary pension insurance contributions.
- Company mobile phone.
- Corporate car (it often applies to management and executives).
Visa and work permit in Croatia
In essence, European Union Countries like Croatia offer several options regarding employers of foreign nationals. Ergo, your application’s requirements, employment eligibility, and processing times depend on your permit type. For instance, you will require a Short-Term Visa (Type C Visa) if you are a business visitor in Croatia.
However, you can enter the country without one if you come from a visa-exempt nation. In essence, a Type C Visa allows you multiple entries of up to 90 days each. On the other hand, a foreign onboarding employee in Croatia requires either a Work Registration Certificate or a Stay and Work Permit. The first will allow you to perform short-term work permit-exempt activities.
On the contrary, you will need the second to perform work activities. Finally, foreign nationals can work remotely from Croatia without local company sponsorship. Above all, they will require a one-year Digital Nomad temporary stay permit.
VAT in Croatia
In Croatia, the standard VAT rate is 25.00%.
Working Hours in Croatia
General
In short, the regular work week, according to International PEO services in Croatia, is 40 hours long and involves working up to 5 days a week. Last, Croatian workers can extend their working hours at their employers' request only with written permission.
Overtime
Indeed, every Contractor Management Services Company in Croatia will advise you that all working hours surpassing the standard hours are overtime. Therefore, employers must pay them according to their employment contracts and collective bargaining agreements. On the other hand, Croatian workers have a maximum of 10 hours of overtime per week and 180 hours per year.
Furthermore, International PEO services in Croatia indicate that employers must pay them a compensation rate according to their employment contract or collective agreements.
Working Week
Monday to Friday.
Employee Termination in Croatia
Termination Process
Contrary to the onboarding employee process, the termination procedure is standard for Croatian workers. Indeed, it requires notice periods unless your employer can prove cause for dismissal without notice. For instance, he can dismiss you due to misconduct or absence without permission.
Moreover, your employer must notify you about your dismissal regarding misconduct in writing. He also must document your meeting and discussions before making a final termination decision.
Notice Period
In essence, European Union Countries like Croatia use a notice period depending on the permanent or temporary employee’s length of service:
- Two weeks’ notice for Croatian employees with a length of service of at least one year.
- Ten weeks’ notice for employees in Croatia with a length of service between two and five years.
- Eight weeks’ notice for Croatian workers with a length of service between five and ten years.
- Ten weeks’ notice for Croatian employees with a length of service between ten and twenty years.
- Twelve weeks’ notice for employees with twenty years of employment or more.
On the other hand, you can get additional two weeks of notice if you are over 50 years old and four weeks for employees over 55 years old.
Severance Pay
In Croatia, employees can only receive severance pay depending on their length of employment. Indeed, Croatian workers can get 33% of their regular monthly pay rate if they have two or more years of employment. Besides, it has a maximum amount of six months of their salary.
Probation Period
Regularly, an Employer of Record Company in Croatia uses a probationary period of no longer than one year for every onboarding employee. However, it depends on the type of role and the employment agreement.
Employee Leaves in Croatia
Paid Time Offs
According to Croatian employment laws, employees deserve paid leave of between 15 to 20 days. Moreover, the exact number of paid leave days depends on their length of service.
Public Holidays
There are 14 national holidays throughout the year.
Vacation Holidays
There are 20 vacation holidays throughout the year.
Sick Days
In essence, Croatian employees can get up to 42 days of sick leva every year. Moreover, their employers must pay them at a rate of 70% of their regular salary. Finally, if a Global Employment Outsourcing company in Croatia gives employees more than 42 days of sick leave, it must pay such days and wait for a reimbursement from Croatia’s health insurance fund.
Paternity Leave
Employer of Record in Croatia involves advising workers about their paternity leave. Hence, one piece of advice they can give is that employment laws in Croatia do not include provisions regarding paternity leave.
However, you can provide care for your child after the mother completes her seventy days of maternity leave. In other words, she can transfer the remainder of her maternity leave to you if she cannot take care of your child.
Paternal Leave
In short, Croatian workers can get 120 days of paid parental leave for each child. Nevertheless, they must take them before their child reaches eight years old.
Besides, Croatian employees can get 120 continuous days of parental leave. On the other hand, they can divide them into two parts.
Maternity Leave in Croatia
Undoubtedly, everyone in your Contractor Management Services Company in Croatia will be happy about your pregnancy. Besides, they will give you the following days of maternity leave:
- Twenty-eight days of paid maternity leave before your due date. Besides, you can increase it to 45 days for special medical circumstances.
- Seventy days of paid maternity leave after the due date.
Last, you can choose between two options when you complete these seventy days. First, you can continue your maternity leave without pay until your child is six months old. On the other hand, you can also share your maternity leave with the father.
There are 208 leave throughout the year.