Payroll and Benefits Guide - Croatia



Euro (EUR)



Employer Taxes


Date Format


Fiscal Year

1 Jan – 31 Dec

Fun Facts

Croatia is located in Southeast Europe, bordering Slovenia, Hungary, Serbia, Bosnia and Herzegovina, and Montenegro.

The official language of Croatia is Croatian, which is a South Slavic language using the Latin alphabet.

Croatia has more than 1,000 islands, of which only about 50 are inhabited.

The city of Dubrovnik is famous for its well-preserved medieval walls and charming old town.

The necktie, or cravat, is believed to have originated in Croatia.

The Dalmatian countries. dog breed, originated from the region of Dalmatia in Croatia.



Employee Payroll Tax

Generation Solidarity15.00%
Individual Capital5.00%

Employer Payroll Tax

Health Insurance16.50%


Payroll Cycle

Monthly salary payments are sent out no later than the fifteenth day of the following month.

13th Salary

The legislation makes no mention of thirteenth salary.

Work Hours and Week

A typical workweek has five days and a maximum of 40 hours. Employee requests to extend their workdays must be made in writing and submitted to the employer.


Every additional hour worked must be compensated as overtime, as specified by the employment contract or collective bargaining agreements, and must be paid. The maximum weekly overtime is 10 hours, or 180 hours a year. Overtime hours may be increased by collective agreements to a maximum of 250 hours annually.

Every extra hour is compensated at the overtime rate outlined in the employment contract or collective bargaining agreements.



Paid Time Off

Employees are entitled to a minimum of four weeks (20 working days) of paid vacation each year after completing six months of employment, according Article 81 of the Labour Act (OF 93/14, 127/17, 98/19).

Public Holidays

In Croatia, there are total of 14 public holidays. On weekends, public holidays are typically lost. Employees are entitled to overtime pay, which is normally agreed in the collective bargaining agreement, if they are compelled to work on a public holiday.

Sick Days

The company pays the employee for up to 42 days of sick time per year at a rate of 70% of the employee’s usual wage. The employer pays for any illness lasting longer than 42 days, and Croatia’s health insurance fund (HZZO) reimburses the employee.

Maternity Leave

Employees who are pregnant are entitled to 28 days of paid maternity leave before the due date, with a maximum increase to 45 days under unusual conditions determined by a medical evaluation.

The worker is entitled to 70 days of paid maternity leave following the birth of a child.

Paternity Leave

Regardless of their marital or familial status, fathers or second parents who meet the legal requirements are entitled to 10 working-days of paid paternity leave for each kid. When a working parent has twins or multiples, the leave is extended to 15 working days.

The 10 days of leave cannot be shared with another parent and must be used within six months of the adoption or birth of the kid. Second parents are eligible to receive their full income during this time from the Croatian government.

Parental Leave

Parents are entitled to parental leave following the maternity leave period of six months, which is over. Before the child reaches the age of eight, each parent may take four months for the first two children and fifteen months for any further children or twins.


Termination Process

Croatian law requires notice periods for terminations unless an employer may show good cause for doing so (such as misconduct, disobedience, a lack of expertise, negligence of tasks, or absence without authorization).

Notice Period

The length of employment affects the notice time for a temporary or permanent employee:

  • Seven days’ notice is necessary when on probation.
  • 2 weeks for those who have worked there for a year
  • 6 weeks for workers with a two-year contract
  • 8 weeks for those with five years of work experience
  • 10 weeks for those with a ten-year employment history
  • 12 weeks for those with more than 20 years of experience

Employees over the age of 50 must give an additional two weeks’ notice, and those over the age of 55 must give an additional four weeks’ notice.

Severance Pay

The length of work affects the amount of severance pay. For each year of service, up to a maximum of six months of the employee’s income, severance pay is granted to employees with two or more years of employment at a rate equal to 33% of their regular monthly pay rate.

Probation Period

Probation Period

The length of the probationary term depends on the type of role and is specified in the employment contract. Probationary periods are typically limited to six months.


Employers of foreign nationals have a variety of possibilities thanks to Croatia’s immigration system. European Union membership is held by Croatia. Each form of permit has different requirements, processing times, employment eligibility, and benefits for accompanying family members.


The commonly used standard rate of VAT in Croatia is 25.00%