Hiring employees in Croatia
Payroll Services Croatia
Explore your business’s potential further by Outsourcing Payroll in Croatia through PeoplePay Global. Our experts are trained to stay up to date with any changes in Croatian Law Legislation, as well as ensuring compliance with Labour Regulations and Social Security Requirements.
Our Croatian Payroll Outsourcing Service handles Salary Calculations, Tax Filings and even Employee Reporting, to ensure that all employees are paid accurately and on-time. Save your team from administrative burdens and reduce costly errors by trusting one of our Croatian Payroll experts to produce secure and reliable payroll solutions for you.
Croatian Payroll Services
Outsourcing Payroll in Croatia is a smart and reliable solution for businesses needing to stay compliant with Local Legislation. At PeoplePay Global, our team of experts are here to provide management to every aspect with ease, including Salary Calculations, Tax and Social Security Contributions and even Statutory Reporting.
Each of our payroll experts will keep up to date with any changes to Local Legislation, to ensure that your company’s payroll is processed accurately and on-time each month. Additionally, by trusting our team, you will minimise the risk of any costly errors or late filings, reducing administrative stress, to allow you the freedom to continue growing your business with ease.
Whether you employ a small and local team or a large workforce, we can assure you the peace of mind that your payroll is being handled and tailored efficiently. Focus your time on running your successful business and leave the heavy workloads to us – start your journey today for a cost-effective payroll management solution.
The gross minimum wage in Croatia is €970 per month as of the 1st January 2025. This is set to increase from the 1st January 2026.
Income tax in Croatia varies depending on the amount of income and place of residence. For example, in 2025, the lower rate of income tax applies to annual income up to €60,000.00 and can vary between 15% to 23%, and the higher rate of income tax applies to annual income above €60,000.01 and can vary between 25% to 33%.
In Croatia, the pension system is complex. They operate a three-pillar system, and employers can expect to pay 15% of an employee’s net monthly salary into the first fund, and 5% into the second fund.
For more information on Croatia’s pension scheme contributions, please contact us.
The standard working hours in Croatia are typically 8 hours per day and 40 hours per week, Monday to Friday. Any hours worked beyond the standard amount are considered overtime, and employers should seek written permission from an employee to increase working hours.
Employee’s leave consists of several types:
- Statutory time off or paid leave, which is 4 weeks, or 20 working days, per year for full-time employees. Some professions are entitled to 5 weeks, or 25 days, of paid leave, such as those exposed to hazardous conditions.
- Public holidays (there are 14 bank holidays per year in Croatia)
- Maternity and Parental leave
- Sick leave
Termination of an employment contract in Croatia can occur in several ways:
- Dismissal due to business reasons, such as redundancy
- Dismissal due to personal reasons
- Dismissal due to conduct of the employee
- Dismissal due to unsatisfactory performance during the probationary period