Croatia at a glance
Taxes in Croatia
Employer Contributions
| Contribution | Rate |
|---|---|
| Employer tax | 0% |
| Social security contributions | 16.5% |
| Contribution | Rate |
|---|---|
| Employer tax | 0% |
| Social security contributions | 16.5% |
| Contribution | Rate |
|---|---|
| Pension contributions | 20% |
| Income tax (lower band) | ~15%–23% |
| Income tax (higher band) | ~25%–33% |
| Gross Income | Tax Rate |
|---|---|
| Up to EUR 60,000 | 20% |
| Over EUR 60,000 | 30% |
Employer of Record in Croatia
How Remote& EOR Works
Croatia requires a temp agency licence for EOR-style employment — standard EOR structures are not permitted. Remote& holds this licence, enabling compliant employment of Croatian workers without you needing a local entity.
| Party | Role |
|---|---|
| Your Company | Directs work, manages performance, allocates tasks |
| Remote& | Holds temp agency licence; runs payroll, files taxes, ensures compliance |
| Employee | Signs agreement with Remote& and fulfills work obligations for your company |
Ask Remi:
"Hire a project manager in Croatia — €2,800/month, starting in 30 days" Remi handles everything: compliant contract, payroll setup, social security registration, and benefits enrollment.
Benefits in Croatia
- Pension: Croatia's pension system has three pillars; the first two involve mandatory employee contributions
- Health insurance: Mandatory basic coverage funded through employer social security contributions (16.5%)
- Meal allowance
- Public transport allowance
- Supplementary pension
- Supplementary health insurance
- Life insurance
- Cash bonuses
- Flexible working hours
- Wellness programs
- Stock options
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Paid Annual Leave | 20 days + public holidays |
| Sick Leave | Up to 18 months (first 42 days employer-paid; remainder via Croatian Health Insurance Fund at 70%–100%) |
| Maternity Leave | 98 days + additional time until child reaches 6 months |
| Paternity Leave | 15 days |
| Parental Leave | 4 months per parent per child (first two children); 15 months per child (subsequent children or twins) |
Employment conditions
Probation
Maximum probationary period is 6 months, with a minimum 7 days' notice required during this period.
Intellectual Property
Employees must notify their employer about work-related inventions. If the invention relates to the employer's economic activity, the employee may request rights assignment — the employer must respond within one month.
Employee Rights & Protections
Croatian workers are protected by: written employment contracts, training rights, union membership, flexible working rights, whistleblower protection, anti-discrimination and anti-harassment protections, data protection, pregnancy rights, and pay transparency.
Payments
End of employment in Croatia
Permanent employment can only be terminated for justified cause (except gross misconduct cases). Employers must provide written notice with clear explanation and respect notice periods ranging from 2 weeks to 3 months depending on service length.
Upon termination, employers must de-register employees with Tax and Insurance Authorities and pay all outstanding salary, severance, and unused holiday entitlements.
Severance Pay: Requires a minimum 2 years of service. Employees receive at least 1/3 of their average monthly salary from the preceding 3 months per year of service, capped at 6 months' salary.
Frequently asked questions
Four paths: run payroll from HQ for short-term arrangements; engage contractors for project-based work; establish a local entity for direct employment; or partner with a licensed temp agency like Remote&. The temp agency model is the only legally compliant EOR route in Croatia.