Chat with us

Croatia – Employer of Record

EWS helps you to hire an international workforce quickly and compliantly, without setting up a legal entity locally. If you’d like to get in touch about our employer of record solution in Croatia, click here

Country Introduction – Croatia 

Capital – Zagreb
Currency – Croatian Kuna (HRK)
Population – 4.1 Million
GDP –  $55.97 Billion
Language – Croatian, Bosnian, Serbian
Major Religions – Christianity

Croatia is located in the north-western part of the Balkan Peninsula. It is a small yet highly geographically diverse country. Its capital is Zagreb, located in the north. The upper arm of the Croatian crescent is bordered on the east by the Vojvodina region of Serbia and on the north by Hungary and Slovenia. The body of the crescent forms a long coastal strip along the Adriatic Sea, and the southern tip touches on Montenegro. Within the hollow of the crescent, Croatia shares a long border with Bosnia and Herzegovina, which actually severs a part of southern Croatia from the rest of the country by penetrating to the Adriatic in a narrow corridor.

Croatia has the smallest town in the world according to the Guinness Book of Records. The town called “Hum” has a population of only 17 people. Croatia has the highest number of UNESCO intangible goods of any European country, 14 to be precise. Michelangelo’s famous work in St Peter’s Basilica was saved from being ruined by a Croatian who suggested putting 5 concentric iron bands on the dome after a crak was discovered. The Croatian Kuna (currency) is named after a rodent. And finally, Game of Thrones, the popular HBO series, was filmed in Croatia.

Contract of Employment

A written employment contract clearly mentioning the terms of employment and the compensation for the role is a legal requirement in Croatia. The contract must be written in Croatian language and the compensation must be defined in Croatian Kuna (HKK).

Probation Period

Up to a maximum of 6 months.


1 year of service; 2 weeks of notice.
2 years of service; 6 weeks of notice.
5 years of service; 8 weeks of notice.
10 years of service; 10 weeks of notice.
20 years of service; 12 weeks of notice.

If an employee is over 50 then the employer must add 2 additional weeks to notice mentioned above. If an employee is over 55 then the employer must add 4 additional weeks to notice mentioned above.

Working Hours

40 hours per week.


Up to a maximum of 10 hours per week. Overtime is paid at a higher rate, agreed between the employee and the employer.

Annual Leave

20 working days per year.

Sick leave

The first 42 days of sickness are covered by the employer. The employer must pay a minimum of 70% of the average salary paid over the previous 6 months. After 42 days the employer still pays but is reimbursed by HZZO (Croatia Health Insurance Fund).

Maternity Leave

208 days of paid maternity leave. Leave starts 28 days before the expected birth.

There are no provisions for paternity leave.


25% VAT.

Income Tax

24% up to 360,000 HRK
30% anything over 360,000 HRK

Employer/Employee Contributions

Health Insurance – 16.5%

Generation Solidarity (Pillar 1) – 15%
Individual Capital (Pillar 2) – 5%

55,086 HRK monthly cap on both Pillar 1 & 2.

Public Holidays

There are 14 paid public holidays in Croatia.

– New Year’s Day
– Epiphany
– Easter
– Easter Monday
– Labour Day
– Corpus Christi
– Anti-Fascist Struggle Day
– Statehood Day
– Victory Day
– Assumption Day
– Independence Day
– All Saints’ Day
– Christmas Day
– Stephen’s Day

Severance Pay

After two years of service an employee is entitled to severance pay in the event of termination. The minimum payment due would be 1/3 of the monthly salary paid for every year completed.

Work and Residence Permits (Expatriates)

Croatia is part of the European Union (EU) and as such EU nationals can live and work in Croatia without a visa. Employees who are not nationals of EU countries must apply for a work and residence permit.

The residence and work permits are limited to a duration of 12 months, they can be extended multiple times.

Prior to hiring non-EU nationals, the local employer must contact the Croatian employment service (HZZ) for labour market assessment, to identify if there are any unemployed Croatians who would be suitable for the job. If there are no qualified Croatians, then the employer can go ahead and apply for the residence and work permits for the foreign employee.

Interested in global expansion? click here

  • share on Facebook
  • share on Twitter
  • share on LinkedIn

Related Blogs