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Expand Your Employer of Record Services In Croatia
We Make Visas Easy For You
Expand Your Employer of Record Services In Croatia
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Expand Your Employer of Record Services In Austria

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Croatia At a Glance

Croatia At a Glance
Croatia At a Glance

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Capital

Zagreb

Currency

Euro

Payroll Frequency

Monthly

Language

Croatian

Employer Taxes

Approximately 17.2% of gross salaries for pension and health insurance.

Employee Taxes

N/A

Date Format

DD/MM/YYYY

Calling Code

+385

Population

3.9 million

GDP

$100 billion USD

Working Hours

40 hours per week

National Holidays

14

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Country Information

Easily navigate Croatia Employment Landscape

Easily navigate Croatia Employment Landscape
Easily navigate Croatia Employment Landscape

Everything you need to know about working in Croatia, explained in one place. Our resources break down Croatia’s key employment rules under the Labour Act, plus practical guidance on work and residence authorization for non-EU/EEA nationals—typically through a stay and work permit (or, for highly qualified roles, the EU Blue Card).

Understanding Weekly Working Hours in Croatia

Explore Work hours Employee rights in Croatia

Explore Work hours Employee rights in Croatia
Explore Work hours Employee rights in Croatia

In Croatia, working hours are regulated to protect employees and ensure fair and sustainable labour practices. The standard working time is up to 8 hours per day and 40 hours per week, typically distributed across five working days. This framework aligns with EU Working Time Directive principles and promotes employee well-being.

Any work performed beyond regular working hours is treated as overtime and must be exceptional and time-limited. Overtime is generally capped at 10 hours per week and 180 hours per year, although this annual limit may be extended to 250 hours through a collective agreement. Overtime work must be compensated at a higher pay rate, with the exact premium determined by the employment contract, internal regulations, or applicable collective bargaining agreements.

Public Holidays and Employee Leave in Croatia

Overview of Public Holidays & Employee leave
Overview of Public Holidays & Employee leave
Overview of Public Holidays & Employee leave

In Croatia, employees are entitled to paid time off on national public holidays, allowing them to rest and participate in cultural and religious celebrations. In addition to public holidays, Croatian labour law guarantees a range of statutory leave entitlements that support employee well-being and work–life balance.

Workers are entitled to paid annual leave of at least four weeks per year, paid sick leave, maternity leave, and paternity/parental leave, with conditions and durations regulated by law and social security rules. Croatian legislation also provides special paid leave for specific life events such as marriage, the birth of a child, bereavement, blood donation, or relocation, typically for a limited number of days as defined by law or collective agreements.

Understanding Weekly Working Hours in Croatia

Explore Employment Contracts & Costs in Croatia

Explore Employment Contracts & Costs in Croatia
Explore Employment Contracts & Costs in Croatia

In Croatia, employment relationships are governed by the Labour Act, which clearly defines employee rights and employer obligations. The standard form of employment is an open-ended (indefinite) contract, and employers are required to register employees with tax authorities and the Croatian social security system from the first day of work. Written employment contracts are mandatory and must specify key terms such as job duties, salary, working hours, benefits, and workplace rules.

Types Of Employment

Croatian labour law recognises several employment arrangements, including:

  • Permanent (open-ended) employment contracts

  • Fixed-term contracts, permitted only under legally justified conditions

  • Temporary or seasonal employment

  • Agency workers, hired through licensed temporary employment agencies

  • Independent contractors, engaged under civil or commercial agreements and not subject to standard employee protections

Correct worker classification is critical, as misclassification can result in financial penalties and retroactive social contribution liabilities.

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ICC classifications, labor leasing, and wage rules in Croatia

Labor Regulations & Independent Contractor Classification in Croatia
Labor Regulations & Independent Contractor Classification in Croatia
Labor Regulations & Independent Contractor Classification in Croatia

In Croatia, the distinction between an independent contractor (freelancer) and an employment relationship is primarily based on the level of independence versus subordination.

Labor Leasing

In Croatia, assigning workers to perform duties at a third-party company—commonly referred to as temporary agency work or labour leasing—is strictly regulated. Only licensed temporary employment agencies may legally supply workers to user companies. These agencies must comply with labour, wage, and social security regulations, and both the agency and the host company may share joint liability if legal obligations are breached.

Minimum Wage Requirements

Croatia enforces a statutory national minimum wage, which is set and updated annually by the government. All employers must comply with this minimum wage regardless of sector or occupation. Collective bargaining agreements may establish higher minimum salaries based on industry, role, or seniority, but they cannot set wages below the national minimum.

How pay and health coverage apply during employee illness in Croatia

Medical Benefits in Croatia

Medical Benefits in Croatia
Medical Benefits in Croatia

In Croatia, employee health protection and sick pay are an essential part of labour law, ensuring income security during periods of illness or injury. When an employee is unable to work due to a non-work-related illness, sick leave must be certified by a licensed doctor and reported in accordance with statutory procedures.

During sick leave:

  • The employer pays salary compensation for the initial period, usually up to 42 days of absence.

  • From day 43 onward, sick pay is covered by Croatia’s public health insurance system (HZZO), subject to legally defined limits and caps.

  • Compensation is calculated as a percentage of the employee’s average salary, with minimum and maximum thresholds set by law.

For work-related accidents or occupational illnesses, wage replacement and medical costs are covered from the first day by mandatory work injury insurance, ensuring full protection for the employee.

If an employee is on long-term sick leave, Croatian law provides job protection, meaning the employment relationship generally continues during the medically justified absence, safeguarding the employee’s position while they recover.

Key rules governing probation duration and employer notice requirements.
Probationary Periods & Termination Notice in Croatia
Probationary Periods & Termination Notice in Croatia
Probationary Periods & Termination Notice in Croatia

Probation Period in Croatia

In Croatia, employment contracts may include a probationary period (probni rad) of up to 6 months, provided it is explicitly agreed in writing at the start of employment. The probation period applies to all employee categories and allows employers to assess performance and suitability for the role.

During probation:

  • Either the employer or the employee may terminate the employment

  • A shorter notice period of at least 7 days applies, unless a longer period is agreed by contract or collective agreement

Collective bargaining agreements may shorten the probation period or provide more favorable notice terms, but they cannot extend probation beyond the 6-month legal maximum.

Termination Notice Periods After Probation

Once probation ends, statutory notice periods (otkazni rok) apply and increase with the employee’s length of service:

  • Up to 1 year of service: at least 2 weeks’ notice

  • 1–2 years: at least 1 month

  • 2–5 years: at least 1 month + 2 weeks

  • 5–10 years: at least 2 months

  • 10–20 years: at least 2 months + 2 weeks

  • 20+ years: at least 3 months

If the employee is over 50 or 55 years old, the law provides for extended notice periods, depending on age and service.

Employees are also required to give notice when resigning, typically one month, unless otherwise agreed.

How termination compensation and background screening are regulated under Austrian labor law
Severance Pay & Pre-Hire Checks in Croatia
Severance Pay & Pre-Hire Checks in Croatia
Severance Pay & Pre-Hire Checks in Croatia

In Croatia, severance pay is calculated and paid at the time of termination, rather than through ongoing employer contributions. When an employee is dismissed without justified reason, they are generally entitled to statutory severance pay (otpremnina), provided they have completed at least two consecutive years of service with the employer.

Severance is typically calculated based on the employee’s average monthly salary and years of continuous service, subject to statutory limits unless a collective agreement, employment contract, or internal policy provides more favorable terms. In addition to severance, employers must also settle unused vacation, outstanding wages, and other accrued entitlements. Certain categories of workers or termination scenarios may follow special rules under Croatian law.

During recruitment, employers in Croatia may conduct limited background checks, including reviewing publicly available professional or social media information, only when it is directly relevant to the position. All personal data processing must comply with the EU General Data Protection Regulation (GDPR) and Croatia’s national data protection framework, ensuring lawful, proportionate, transparent, and non-discriminatory use of personal information.

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