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Hire and manage employees in Croatia

As your Employer of Record (EOR) in Croatia, we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Last updated:
April 9, 2026
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Quick facts

Croatia, a member of the European Union, is a mixed economy with key industries in tourism, agriculture, and manufacturing. The country enjoys steady growth, leveraging its strategic position and robust service sector. However, its labor market is characterized by progressive employment laws and a strong emphasis on workers’ rights, aligning with EU standards.

Employment Contracts

Employment contracts in Croatia are primarily concluded for an indefinite period and on a full-time basis. Fixed-term contracts are permitted but are limited to a maximum duration of three years. Part-time contracts are also available and provide employees with proportional rights regarding pay and leave. Mandatory clauses, such as job descriptions, salary, and working hours, must be provided in writing in Croatian.

Probation Period

A probationary period of up to six months may be contracted for both indefinite and fixed-term employment.

Working Hours

Full-time work consists of 8 hours per day or 40 hours per week. Employees working at least six hours daily are entitled to a 30-minute paid break included in their working hours. Daily rest periods must be at least 12 consecutive hours. Overtime is capped at 180 hours per year and is compensated at 135–150% of the regular wage. Increased rates also apply to night work (10 PM – 6 AM), Sunday work, and work on public holidays.

Vacation Days

Employees are entitled to a minimum of 20 days (4 weeks) of paid annual leave. Additionally, employees may take up to 7 days of special leave per year for significant life events (such as marriage or funerals) and 1 day for blood donation. Croatia recognizes 14 public holidays annually.

Sick Leave

Sick leave is regulated under the Croatian Law on Mandatory Health Insurance. A medical doctor determines the start and duration of the leave. The employer pays for the first 42 calendar days of certified sick leave. From the 43rd day onward, sick pay is handled by the Croatian Health Insurance Fund (HZZO), provided the employee meets eligibility conditions.

Wages and Salary Payment

The prescribed minimum gross salary for 2026 is €1,050.00. Salaries are paid once a month in EUR, typically by the 5th and no later than the legal deadline of the 15th. To ensure timely processing, any salary amendments or expense claims must be submitted by the 10th of the month. Payslips must be provided to employees by the 15th.

Public Holidays

Croatia recognizes 14 public holidays in 2026, including:

  • New Year's Day: 01 January
  • Epiphany: 06 January
  • Easter Monday: 06 April
  • Labour Day: 01 May
  • Statehood Day: 30 May
  • Remembrance Day: 18 November
  • Christmas Day: 25 December

Employer Taxes

Employers are required to pay a mandatory health insurance contribution of 16.5% of the employee's gross salary. Non-mandatory perks may include allowances for public transportation and meals.

Employee Taxes

Pension insurance contributions total 20% of the gross salary (15% for the first-pillar state pension and 5% for second-pillar capitalized savings). Progressive income tax rates for 2026 generally fall into two bands:

  • Lower rate: ~15%–22%
  • Higher rate: ~25%–33% Exact rates within these bands are determined by individual municipalities.

Notice Period

The length of the standard notice period depends on the duration of service:

  • Less than 1 year: 2 weeks
  • 1 year: 1 month
  • 2 years: 1 month and 2 weeks
  • 5 years: 2 months
  • 10 years: 2 months and 2 weeks
  • 20 or more years: 3 months These periods can increase by 2 to 4 weeks for older employees depending on their age.

Termination and Severance Pay

Severance pay is compulsory for business-caused or personal notice after the employee has completed two years of service with the same employer. In cases of invalid dismissal, employees may be entitled to reinstatement or damages equivalent to 3–8 months’ salary.

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Frequently
Asked
Questions

What is International EOR and PEO?

International EOR (Employer of Record) and PEO (Professional Employer Organization) are services that enable businesses to compliantly hire, manage, and pay employees in foreign countries without the need for establishing a legal entity. EOR acts as the legal employer while PEO co-employs workers, handling administrative tasks such as payroll, taxes, and benefits.

Does Acvian handle time record submissions?

Acvian does not handle time record submissions directly. It is the client’s responsibility to track and submit employee work hours. However, Acvian can offer guidance and best practices to ensure efficient time tracking and compliance with local labor laws.

How can employees view their payroll details?

Employees can view their payroll details through the monthly payslips they receive and also via our Acvian platform. These payslips contain information on earnings, deductions, taxes, and net pay, giving employees a clear overview of their monthly payroll. Please note that in some countries, employers are restricted from viewing payslips due to data protection regulations, and only employees can share their payslips. For more details on these regulations, please contact our specialists.

How Acvian handles payroll disputes?

Acvian addresses payroll disputes promptly, working closely with both the client and the employee to investigate and resolve any issues.

Does Acvian require advanced monthly payments of salaries and service?

Yes, Acvian requires advanced monthly payments for salaries and service to ensure timely and accurate payroll processing.

Can Acvian provide consultations regarding a labor and tax legislation?

Yes, Acvian can provide consultations regarding labor and tax legislation. Our team of experts is well-versed in local regulations and can offer guidance to help your business maintain compliance, reduce risk, and navigate the complexities of international employment and taxation laws.

Which benefits does Acvian provide?

Acvian provides a diverse range of benefits, including but not limited to:

  • Health insurance
  • Car leasing
  • Gym allowance
  • Per diem compensation
  • Maternity leave

We can customize and offer many kinds of benefits requested by the client, ensuring that your employees receive the support and perks that align with your company culture and local regulations.

Can Acvian provide private health insurance?

Acvian can provide private health insurance options as part of its comprehensive employee benefits package.

What would the monthly/yearly costs for the employee be?

The monthly/yearly costs for an ‘average’ package vary depending on the specific plan and location. See our estimated price packages here. Acvian’s team can provide detailed cost breakdowns based on your requirements.

Can Acvian help with entity set up?

While Acvian doesn’t directly provide entity set-up services, we can introduce you to local lawyers who specialize in this area to assist you with your needs. See also, when it's better to set the entity or use the EOR.

Offboarding: how it is handled?

Offboarding is managed by Acvian in a structured and compliant manner. We coordinate with your business to ensure all necessary documentation, exit interviews, and final payments are completed. Acvian also ensures adherence to local labor laws and regulations, including providing any required notice periods and managing the termination process.

When does business need it?

Businesses typically need EOR and PEO services when they:

  • Expand into new international markets.
  • Hire remote employees in foreign countries.
  • Seek to streamline global workforce management.
  • Aim to ensure compliance with local labor laws and regulations.
  • Want to reduce the time and cost of establishing legal entities abroad.

Is Acvian compliant with GDPR?

Yes, Acvian is fully compliant with GDPR regulations. We collect and process personal data in accordance with the law, ensuring that data is used only for general, allowed purposes such as marketing and other legitimate business activities.

Do you provide employment agreements?

Yes, Acvian provides both permanent and fixed-term employment contracts, with the possibility of extension. After the second extension, the contract becomes indefinite.

How do employees view their payroll?

Employees can view their payroll details through the monthly payslips they receive and also via the Acvian platform.

Where can Acvian supply EOR services?

Acvian can supply EOR services in over 180 countries, encompassing almost all European nations, the United States, and Canada, providing extensive coverage to support your business’s global expansion and workforce management needs. See our coverage here.

How does payroll work under EOR?

Under EOR, Acvian manages the payroll process by:

  • Acting as the legal employer of your foreign workforce.
  • Handling salary calculations, deductions, and disbursements.
  • Ensuring compliance with local tax and labor laws.
  • Managing payroll taxes, social contributions, and benefits.
  • Providing timely and accurate payroll processing for your employees.

Explore the details here.

Can you provide support for expatriate EOR workers?

Yes, Acvian provides comprehensive support for expatriate EOR workers, including:

  • Visa and work permit assistance.
  • Relocation and housing support.
  • Local registration and compliance.
  • Payroll and tax management.
  • Coordination of benefits and insurance coverage.

Explore in details here.

What are the details of expats support?

Expats support from Acvian encompasses a range of services designed to facilitate a smooth transition for employees working abroad. Key aspects include:

  • Assistance with visa and work permit applications, renewals, and compliance.
  • Support for relocation, including housing, schooling, and local registration.
  • Guidance on local tax regulations and filings.
  • Coordination of locally compliant benefits and insurance coverage.
  • Ongoing support for any changes or issues that may arise during the expatriate assignment.

What happens after onboarding?

After onboarding, Acvian maintains an ongoing relationship with your business and employees, ensuring smooth payroll processing, managing tax and regulatory compliance, handling benefits administration, and providing support for any changes or issues that may arise in the employment lifecycle. This allows you to focus on your core business operations while Acvian manages your international workforce.

How many days will it take for our personnel to be onboarded?

The onboarding process typically takes between 2 to 4 weeks, depending on the country and complexity of the employee’s situation. However, Acvian strives to expedite this process, ensuring a smooth and efficient transition for your personnel. See our story of the urgent employment project.

Does Acvian provide in-country support for employee inquiries or assistance requests?

Yes, Acvian provides in-country or regional support for employee inquiries and assistance requests. We have dedicated managers in the countries where we support your employees, ensuring prompt and knowledgeable assistance tailored to local regulations and practices.

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