Country Payroll Guide Croatia

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Key Facts

Capital
Zagreb
Date format
dd.mm.yyyy
Currency
Kuna (HRK)
VAT
the standard rate is 25%

Contributions

Employers

Health Insurance
Health Insurance - 16.5%
Total Employment Cost
Total Employment Cost - 16.5%

Employees

Pension
Pension - up to 20%
Total Employee Cost
Total Employee Cost - 20%

Minimum Wage

Minimum Wage
The minimum wage in Croatia is 3120 HRK per month.

Payroll

Payroll Cycle
Monthly
13th Salary

Not mandated, however bonuses are common during the Christmas period.

Income Tax

Employee Income Tax (1)
Up to 360,000 HRK - 20%
Employee Income Tax (2)
Over 360,000 HRK - 30%

Working Hours

General Working Hours

40 hours per week.

Overtime

Overtime may not exceed 180 hours per year, unless previously agreed upon in a collective agreement, which will allow a maximum of 250 hours overtime.

Leave

Paid Time Off

20 days per year.

Public Holidays

14 days.

Sick Days

Sick leave cannot be less than 70% of the employees average salary over the previous six months. This leave will be paid for by the employer for the first 42 days.

Maternity Leave

208 days (paid) with a minimum of 28 days must be taken before the birth.

Paternity Leave

There is no specific paternity leave, however the father can take over the mothers’ maternity leave if the mother is unable to care for the child.

Parental Leave

Parents are entitled to parental leave until the child turns eight years of age. Both parents use parental leave for four to 15 months, but if only one parent takes it, they are entitled to take six to 30 months.

Termination

Termination Process

A written notice is required when terminating an employee’s contract.

Notice Period

The relevent notice periods are as follows:

  • 2 weeks for employees with 1 year of service
  • 6weeks for employees with 2 years of service
  • 8 weeks for employees with 5 years of service
  • 10 weeks for employees with 10 years of service 12 weeks for employees with over 20 years of service
  • An additional 2 weeks will be added for an employee over 50 and an additional four weeks for an employee over 55.
Severance Pay

An employee with at least 2 years of service with a company is entitled to severance pay in the event of termination. This must be at least one-third of the regular monthly pay per year.

Probation Period

Maximum 1 year.

Visa

Employment Visa

N/A