Employer of Record in Croatia

Brain Source International helps you save time and reduce costs by allowing you to hire in Croatia without establishing an entity. Our Employer of Record (EOR) solution handles onboarding, payroll, immigration, and benefits so you can hire your employees faster and grow your business compliantly.

What is an Employer of Record in Croatia?

An Employer of Record (EOR) in Croatia is a strategic partner that acts as the legal employer for your employees residing in Croatia. The EOR takes on all employment responsibilities and liabilities on your behalf, handling payroll, benefits, taxes, and regulatory compliance.

By partnering with an EOR, you can hire employees in Croatia without the need to establish a local entity or navigate complex labor laws.

Employer of Record (EOR) in Croatia: Key Aspects of the Croatian Labour Code

General Information

• Currency: EUR
• Payroll Frequency: Monthly
• Capital: Zagreb
• Fiscal Year: 1 January – 31 December

Main Aspects of the Labour Code

Minimum Wage

General: Croatia’s monthly minimum wage stands at 700.00 HRK.

Payroll

Payroll Cycle: Salaries in Croatia are paid on a monthly basis, with a deadline of the 15th of the following month.

13th Salary

Croatian law does not mandate the payment of a 13th salary. This means employers are not legally obligated to provide an additional salary at the end of the year.

Taxation

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Working Hours

General: The standard workweek in Croatia is five days, with a maximum of 40 hours. Any increase in working hours requires explicit written consent from employees.

Overtime: Overtime work exceeding the standard 40-hour workweek is subject to specific regulations outlined in employment contracts or collective bargaining agreements.

Overtime pay: All overtime hours must be compensated at a premium rate determined by the employment contract or collective bargaining agreement.

Overtime limits: Employees can work a maximum of 10 overtime hours per week and 180 overtime hours annually. Collective agreements may extend this annual limit to 250 hours.

Leave

Annual Leave (Vacation):

Employees in Croatia are entitled to a minimum of four weeks (20 working days) of paid annual leave after completing six months of employment.

Vacation Entitlement

• Full-time employees: Acquire the right to annual leave after six months of continuous employment.
• Part-time or terminated employees: Entitled to a proportional part of annual leave based on months worked.
• Minors and employees in hazardous occupations: Eligible for five weeks (25 days) of paid annual leave.

Vacation Pay

Employees receive full pay during their annual leave, calculated based on the average salary of the previous three months.

Public Holidays

Public holidays that fall on the weekend are usually lost. Employees who are required to work on a public holiday are entitled to extra pay, which is typically negotiated in the bargaining agreement.

Sick Days

Employees in Croatia are entitled to up to 42 days of paid sick leave per year. The employer covers these first 42 days, paying the employee 70% of their regular salary. For illnesses exceeding 42 days, the employer continues to pay the employee, but the Croatian Health Insurance Fund (HZZO) reimburses the employer for these costs.

Maternity Leave

Pregnant employees are entitled to:

Pre-natal leave: 28 days before the expected due date. This can be extended to 45 days in cases of medical complications.

Post-natal leave: 70 days following the birth of the child.

Extended maternity leave: After the initial 70 days, mothers can continue unpaid maternity leave until the child is six months old. However, many employers offer paid leave as an additional benefit. Alternatively, parents can choose to share the maternity leave.

Paternity Leave

Fathers or equivalent second parents are entitled to 10 working days of paid paternity leave per child. This leave can be taken within six months of the child’s birth or adoption placement. For twins or multiples, this entitlement increases to 15 working days.

This leave is non-transferable and the father receives his full salary, paid by the Croatian government, during this period.

Parental Leave

After the initial six months of maternity leave, parents have the option to take parental leave.

Leave allocation: Each parent is entitled to four months of parental leave for the first two children and 15 months for subsequent children or twins.

Timeframe: This leave must be taken before the child reaches eight years old.

Note: If only one parent takes the leave, the total duration can be extended.

Brain Source International is a global EOR with a strong presence in Croatia. They offer comprehensive EOR solutions to help businesses expand their operations seamlessly.

Key EOR Services Provided by Brain Source International in Croatia:

• Recruitment and Onboarding: Brain Source International can assist in finding qualified candidates, handling the hiring process, and onboarding new employees according to Croatian labor laws.
• Payroll and Benefits Administration: They manage payroll processing, tax deductions, and compliance with local regulations. Additionally, they can help with benefits enrollment and administration.
• Contract Management: Brain Source International handles the drafting and management of employment contracts in compliance with Croatian labor law.
• Compliance and Risk Management: They ensure your business adheres to all Croatian labor, tax, and employment regulations, mitigating potential risks.
• HR Administration: From employee records to performance management, Brain Source International provides comprehensive HR support.

Benefits of Using Brain Source International as Your EOR in Croatia:

• Speed to Market: Quickly expand your operations in Croatia without the need for a local entity setup.
• Cost-Effective: Avoid the overhead costs associated with setting up and managing a local HR department.
• Compliance Assurance: Rest assured that your business is compliant with Croatian labor and tax laws.
• Focus on Core Business: Delegate HR and payroll tasks to experts, allowing you to concentrate on your business goals.
• Global Reach: If you plan to expand to other countries, Brain Source International can support you with their global EOR services.