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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:
November 10, 2025
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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 typically concluded for indefinite periods and on a full-time basis. Fixed-term contracts are permitted for specific jobs or events, and employees may combine contracts with multiple employers up to a full-time rate of 40 hours per week. With employer consent, additional contracts are allowed for up to 8 hours per week or 180 hours annually.

Probation Period

Employers can stipulate a probationary period of up to 6 months.

Working Hours

Standard working hours are 8 hours per day or 40 hours per week. Employees working at least 6 hours daily are entitled to a paid 30-minute break. Daily rest periods must be at least 12 consecutive hours. Overtime, night shifts, and work on Sundays or public holidays are compensated at higher rates.

Vacation Days

Employees are entitled to a minimum of 4 weeks of paid vacation annually, with 5 weeks for minors and those working under challenging conditions. Additional vacation days may be granted based on age, family status, or job complexity, but the maximum is typically 30 days. Paid leave of up to 7 days annually is allowed for significant personal events. Vacation rights cannot be waived or replaced with monetary compensation.

Sick Leave

Eligibility for income-replacement benefits requires at least 9 consecutive months of pensionable service or 12 months over the past 2 years. Employers cover sick leave payments for the first 42 days (or 7 days for disabled workers), with payments ranging from 70% of the average wage to a minimum of €111 and a maximum of €567. Beyond this period, payments are handled by the Croatian Health Insurance Fund (HZZO).

Wages and Salary Payment

Salaries are typically paid monthly by the 15th day of the following month, often via bank transfer. Additional pay applies for overtime, night shifts, and work on Sundays or holidays. Collective agreements often provide a 0.5% annual increase in salaries. The minimum gross salary for 2024 is €840.

Public Holidays

Croatia recognizes 13 public holidays, including:

  • New Year’s Day (1 January)
  • Labour Day (1 May)
  • Statehood Day (30 June)
  • Christmas (25 December)

Public holidays are considered non-working days.

Employer Taxes

Employers contribute 16.5% of gross salaries to health insurance. Additional non-taxable benefits may include allowances for transportation, meals, or bonuses (e.g., Christmas bonuses up to €400).

Employee Taxes

Croatia employs progressive tax rates:

  • 20% for income up to €48,000 annually.
  • 30% for income above this threshold.

Social security contributions are 20% of gross salaries, with 15% allocated to the first pension pillar and 5% to the second. Contribution caps are as follows:

  • €7,630 monthly for salaries.
  • €91,840 annually for overall contributions.

Notice Period

Notice periods depend on the duration of employment, ranging from 2 weeks for one year of service to 4 months for over 20 years. Employees over 50 years old are entitled to an additional 2 weeks, and those over 55 receive an extra 1 month.

Termination and Severance Pay

Employers may terminate contracts for valid reasons, such as business changes, personal performance issues, or misconduct. Severance notice depends on the tenure:

  • 2 weeks for 1 year of service
  • 2.5 months for 10 years
  • 3 months for over 20 years

Employees over 50 years old receive an additional 2 weeks, while those over 55 receive 1 additional month. Misconduct-related terminations entail half the standard notice period.

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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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