Croatia

Currency Kuna (HRK)
Payroll Frequency Monthly/no later than the 15th of the following month
Capital Zagreb
Date Format dd.mm.yyyy (ce)
VAT 25% standard rate

Employer of record Services
TopSource offers complete payroll, EOR and contractor management services for Croatia. TopSource provides Employer of Record services to global companies establishing a presence in Croatia that do not wish to be burdened with the complications of Croatia employment regulations.
TopSource serves as an outsourced Global Employment Solutions provider. We provide comprehensive employment services such as payroll, payroll related compliances, leave and attendance administration, HR management, and assistance with employer compliances.
If you have an established presence in Croatia, our payroll bureau services are available. But if you are seeking to avoid the complications of a subsidiary—or wish to establish a presence quickly an convert to a subsidiary later—our EOR service is ready to support you today.

Services we offer

Payroll Processing
• Payroll bureau solutions for your Croatian entity
EOR
• Employment solutions/leasing • Providing documents associated with employment
• Employee on-boarding process and documentation • Monthly salary calculation
• Salary disbursement to employee’s account • Pay slip generation (If applicable)
• Employee statutory benefits administration and deduction
Supplementary services
• Foreign exchange and money transfer services for payment of employees and 3rd parties

Company formation in Croatia
We can help with company registration, company incorporation along with all the necessary documentation in Croatia. We can also assist foreign companies to smoothly setup a company anywhere in Croatia.

Statutory Compliances
We offer high-quality corporate statutory compliance services in Croatia. Our services meet highest standards and meet all your compliance requirements.

  • Minimum Wage

    462.30EUR ($514.99) monthly

  • Taxes
    Employer
    Health – 15.00% Unemployment – 1.70%
    Contribution against Injury at Work – 0.50%
    Employee
    15.00% – Generation Solidarity (Pillar 1) 5.00% – Individual Capital (Pillar 2)
    24.00% – Up to 210,000 36.00% – Over 210,000
About Employment in Croatia

Working Hours

Full time employment is considered 40 hours weekly – however can be extended to 50, and if agreed to in a collective agreement up to 60. The maximum overtime allowed is 180 hours annually.

Vacation Days/Sick days

Employees are entitled to minimum of four weeks of paid leave after working in the company for six months.
7 days per year of sick leave is the standard although in severe circumstances up to 42 days are granted.

Maternity/Paternity Leave

Maternity leave: It commences 28 days prior to the expected date of birth and can reach up until the child is 6 months old.
Paternity Leave: A maximum for 7 days, fully paid, is permitted.

Parental Leave

Parents have the right to parental leave once a child is six months of age. Parents can exercise their right to parental leave until a child is eight years of age. Parental leave is an entitlement to an individual. Its length (for one parent) varies from four months (first and second born) to fifteen months (for twins, other multiple births). Parental leave is not compulsory and a parent can transfer their parental leave to the other parent if they wish to do so and they have the other parents’ consent in writing.

Pension/Social Security

Pension: Employees contribute 20% of their wages which is withheld by the employer, with contribution ceiling of 5,066EUR per month.
Social Security: Contributions consist of pension contributions at a rate of 20% from the gross salary, and a health and employment contribution at the rate of 17.2% from the gross salary.

Termination/Advance Notice

When terminating a fix term contract the employer must apply one of the following reasons: business, personal or workers misconduct. When terminating an open ended employment agreement the employer does not need to supply a reason.
Advance Notice: The initial agreement between employer an employee determines what notice needs to be given, there is nothing compulsory set in place.

Severance Pay

Only when the employee has been with the same company for more than 2 years they are entitled to severance pay, this will be calculated in ratio to the number of years the employee has been employed. The minimum amount is one third of the average monthly salary earned during the last three months prior to termination and the maximum is six months of the average monthly salary.
To learn more, contact us now.

Contact Sales

0203 6915303
contactus@topsource.co.uk

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