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Hiring in Croatia gives employers access to a well-educated workforce with strong capabilities in IT, engineering, tourism, manufacturing, and shared services. As an EU member state, Croatia offers access to European talent while maintaining competitive labor costs compared to Western Europe.
Employment in Croatia is governed by the Croatian Labour Act, which regulates employment contracts, wages, working hours, termination, and employee rights. Employers must comply with national labor laws and EU employment standards. Many companies use job portals, recruitment agencies, and digital hiring platforms to streamline recruitment while staying compliant.
Facts & Stats
Key Employment Rules Employers Must Know
Employment relationships in Croatia are regulated by the Croatian Labour Act. Employment contracts must be provided in writing and outline job role, salary, working hours, and conditions. Probation periods are permitted for up to 6 months.
The standard working week in Croatia is 40 hours, typically spread across five working days. Daily working time usually cannot exceed 8 hours unless otherwise agreed.
Overtime is regulated and generally limited to 180 hours per year, or up to 250 hours with employee consent. Overtime must be compensated with increased pay or time off in lieu, as defined by law or collective agreements.
Croatia has a nationally regulated minimum wage, updated annually. The current gross monthly minimum wage is €840 for full-time employees. Employers must ensure wages meet or exceed this level.
Employees are entitled to statutory paid leave and protections related to termination, notice periods, and severance pay.
Overview of Employer, Employee, and Individual Taxation in Croatia
Approximately 20%
Employees contribute around 20% of their gross salary toward pension and health insurance contributions, deducted automatically from wages.
Approximately 16.5%
Employers contribute approximately 16.5% of an employee’s gross salary toward social security, covering health insurance and workplace accident contributions.
20% and 30%
Croatia applies a progressive personal income tax system, with tax rates of 20% and 30% depending on income level, plus local surtaxes where applicable.
Croatia operates a mandatory public pension system funded through employer and employee contributions. Pension eligibility depends on contribution history and statutory retirement age.
Employment termination in Croatia must comply with the Labour Act. Employers must have valid legal grounds for dismissal and follow prescribed procedures. Notice periods depend on the employee’s length of service and generally range from two weeks to three months. Immediate termination is allowed only in cases of serious misconduct.
In Croatia, notice periods depend on the employee’s length of service and can range from two weeks to three months. Longer notice periods may apply for senior employees or as defined by collective agreements.
Severance pay is required for employees with at least two years of service when termination is not due to misconduct. It is typically calculated based on length of service and average salary, subject to statutory limits.
Employees in Croatia are entitled to a minimum of 20 days of paid annual leave per year, excluding public holidays. Paid sick leave is available, with compensation initially covered by employers and later by national health insurance. Maternity leave generally lasts up to 98 days before birth and continues after delivery, while parental leave is also available and funded through social insurance. Employees are entitled to paid bereavement leave, typically lasting up to 7 days depending on circumstances.
January 1
New Year’s Day
May 1
Labour Day
June 22
Anti-Fascist Struggle Day
August 5
Victory and Homeland Thanksgiving Day
December 25
Christmas Day
Frequently asked questions
What makes Iris helpful for hiring in Croatia?
Iris helps employers source and evaluate candidates efficiently while supporting compliance with Croatian labor laws and EU employment standards.
Is it mandatory to hire Croatian nationals?
No. Employers can hire both Croatian and foreign nationals. Non-EU employees must have valid work permits, while EU citizens can work freely in Croatia.
How is severance calculated in Croatia?
Severance pay is based on the employee’s length of service and average salary and is required when termination occurs without employee fault.
What are the official working hours in Croatia?
The standard working week in Croatia is 40 hours, typically spread across five days.
Do employees in Croatia receive a pension?
Yes. Employees are covered by a mandatory public pension system funded through employer and employee contributions.
