Croatia, officially the Republic of Croatia, is a country at the crossroads of Central and Southeast Europe. It borders Slovenia to the northwest, Hungary to the northeast, Serbia to the east, Bosnia and Herzegovina to the southeast. It also shares a maritime border with Italy. Croatia has an area of roughly 56,594 km2. The country’s economy relies on tourism with 66.14% of employment being in the service sector, 27.67% in industry, and 6.19% in agriculture.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Croatia.

Capital :
Zagreb
Currency :
Croatian Kuna (kn, HRK)
Languages spoken :
Croatian
Population :
4.05 million (2020 est.)
Minimum wage 2022 :
HRK 4,687.50 (monthly)
Cost of Living index :
$$ (59 of 139 nations)
Payroll Frequency :
Monthly
VAT - standard rate :
25%
GDP - real growth rate :
-8.1% (2020 est.)

Statutory Holidays

The holidays mentioned below are valid for the year 2022.

Croatia has 14 non-working Public holidays.

Date
Holiday Name
Extra Information
January 1
New Year’s Day
January 6
Epiphany / Holy Three Kings
April 17
Easter
Movable
April 18
Easter Monday
Movable
May 1
Labor Day
May 30
Statehood Day
June 16
Corpus Christi
Movable
June 22
Anti-Fascist Struggle Day
August 5
Victory and Homeland Thanksgiving Day and Croatian Veterans Day
August 15
Assumption of Mary
November 1
All Saints' Day
November 18
Day of Remembrance for the Victims of Homeland War and Day of Remembrance for the Victims of Vukovar and Škabrnja
December 25
Christmas Day
December 26
St. Stephen’s Day

Onboarding Time


When hiring new employees in Croatia through WorkMotion, the approximate onboarding time is only 4 business days. 

Our team ensures compliance with local employment legislation, as well as a quick and efficient onboarding process. The minimum onboarding time begins from the moment that WorkMotion has received all required information from both the client and the employee.

For more complex onboardings, this time may increase depending on the selected bouquet of contract inclusions and the right-to-work status of the employee.

What You Need To Know


Employers employing at least 20 employees are obliged to employ persons with disabilities in an appropriate job, in appropriate working conditions, in the amount of 3% of the total number of employees on the basis of which the quota is determined, regardless of the activity performed by the employer.

Labor Conditions


Working Hours

The full working hours of a worker may not exceed 40 hours per week.

 

Overtime

If a worker works overtime, the total duration of the worker’s work may not exceed:

  • 50 hours per week;
  • 180 hours per year, unless agreed in a collective agreement, in which case it may not last longer than 250 hours per year.

 

Probation Period

The probationary period may not last longer than six months.

Termination Notice Period

The notice period begins to run on the day of delivery of the termination of the employment contract.

In the case of regular termination (ordinary dismissal), the length of notice periods depends on employment length as follows:

Employment LengthTermination Notice Period
During ProbationAt least 7 weeks
Less than 1 yearAt least 2 weeks
At least 1 continuous yearAt least 1 month
At least 2 consecutive yearsAt least 1 month and 2 weeks
At least 5 consecutive yearsAt least 2 months
At least 10 consecutive yearsAt least 2 months and 2 weeks
At least 20 YearsAt least 3 months

Leave / Time Off

Annual Leave

A worker is entitled to an annual leave of at least four weeks (or 20 days) for each calendar year.

Sick Leave

An employee is entitled to a maximum of 42 days of employer-paid sick leave per year. The amount of pay the employee receives depends on their employment agreement, but cannot be less than 70% of the average gross daily wage in the six months preceding the sick leave.

Parental Leave

Parents are entitled to up to eight months (for the first and second child) or 30 months (for twins, third, and each subsequent child). The leave is paid for by the Croatian Health Insurance Fund (HZZO).

 

Maternity Leave

Mothers are entitled to a compulsory maternity leave of continuous 98 days (28 days before the expected date of birth and 70 days after the birth of the child).

 

Paternity Leave

There is no statutory entitlement to paternity leave except where after the 70th day after the child’s birth (ie after the expiration of compulsory maternity leave), the child’s mother can transfer the use of the remaining part of the maternity leave (additional maternity leave) in full or in part to the child’s father.

 

Adoption Leave

Adoptive parents are entitled to six months of adoption leave for a child up to 18 years of age starting from the day the decision on adoption becomes final.

Other Types of Paid Leave

Paid Leave for Important Personal Needs

Employees are entitled to employer-paid leaves of up to seven days per calendar year for important personal needs, especially in connection with marriage, childbirth, serious illness, or the death of a close family member.

 

Paid Leave for Education and Training

Employees are entitled to paid leave when receiving occupational or general schooling, training, or advanced training, as well as schooling for the needs of the employees’ council or union work. The leave period is considered part of service at work and is paid by the employer.

 

Paid Leave for Blood Donation

Employees on the basis of blood donation are entitled to one paid day off.

Statutory Benefits

The Croatian social seuciry system covers health, pension insurance, unemployment insurance, family benefits, social benefits, and child benefits.

Employers are only required to contribute to health insurance at 16.5% of the employee’s gross salary.

Health Insurance

Compulsory primary health insurance is administered by the Croatian Health Insurance Fund (Hrvatski zavod za zdravstveno osiguranje, HZZO) and covers the costs of health services prescribed by law.

Other Insurances

Unemployment Insurance

Employers do not contribute to unemployment insurance.

Employees who lost their jobs involuntarily are entitled to unemployment benefits paid by the Croatian Employment Service (Hrvatski zavod za zapošljavanje, HZZ). The benefits are calculated on the basis of the average gross wage employees earned over the previous three months before their termination of the employment contract.

 

Accident Insurance

Accident insurance benefits are paid by employers’ mandatory health insurance contributions (16.5%, included in the social security comprehensive) and employees’ mandatory pension contributions.

Public Pension

The retirement age is 65 years for men and 63 years for women (in 2022). The retirement age for women is being gradually raised, by 3 months every year, to bring it into line with the age condition for men by 2030.

There is no statutory employer contribution towards Pension, but they must deduct the employees’ share of 20% from their salaries and pay it to the State Treasury.

Other Statutory Benefits

Disability Benefits

An employee whose capacity for work is reduced or lost partially or fully may be entitled to an invalidity pension and income-replacement benefit in the pension insurance system.

Disclaimer

The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.

Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.

The Rise of Workations: Employer
Compliance and Data Security!

31st May – 11AM CEST.

During the webinar, we will discuss the employer risks
related to temporary work from abroad!

Join the webinar!