Your Guide to Hiring Employees and Contractors in Croatia
Ease of doing business
Salaries are paid monthly and no later than the 15th of the following month.
Minimum Wage Requirements:
The minimum wage is HRK 4,687.50 per month.
Individual Income Tax
The individual income tax ranges from 20% to 30%. Income tax is calculated according to progressive rates. In addition, there may be local municipality taxes.
Income up to HRK 360,000
Tax rate: 20%
Income above HRK 360,000
Tax rate: 30%
The employer cost is generally estimated at 16.5% of the employee salary.
Monday to Friday
Overtime Pay & Maximum Hours:
The maximum number of overtime hours in a week is 10 or 180 hours annually.
All overtime hours are paid at an overtime compensation rate which is stipulated in the employment contract or collective bargaining agreements.
Employee contracts can be terminated if a just cause is established, such as dishonesty, negligence, fraud, or any other work-related offenses.
The statutory notice period depends on an employee’s tenure with the employer’s organization
The probation period is dependent on the type of role and is stipulated within the employment agreement. In general, probation periods cannot be longer than one year.