Employee Leasing in Croatia

Content:

• Advantages of Employee Leasing in Croatia
• Employee Leasing Services Offered by FMC Group
• Advantages of the Croatian Market
• Recruitment in Croatia
  • Minimum Wage and Payroll
  • Social Contributions and Taxes
  • Working Hours and Overtime
  • Vacation Days
  • Parental Leave and Sick Leave
  • Notice Period

• Employee leasing in Croatia gives clients access not only to the Croatian labor market but the entire EU talent pool.
• Expanding business activity in Croatia through employee leasing significantly enlarges the client’s potential, thanks to the unique location of Croatia and the business environment it provides as an EU member.
• Employee leasing greatly facilitates expanding into a new country, as it allows clients to focus solely on business decisions while entirely delegating the recruitment process and administrative management of employees.

• We search for and select the best candidates that will fit right in your company;
• We conclude employment contracts with your best interest in mind;
• We provide professional accounting services according to international standards;
• We pay taxes and social security contributions in accordance with the Croatian law;
• We monitor your employees’ paid leaves;
• We implement private health insurance for your employees if requested;
• We maintain regular contact with you regarding the management of your employees.

• Croatia is located in a strategic location that makes it reachable from all major European cities within three hours or less. It is also at the crossroads of three important Pan-European corridors that connect Western and Eastern Europe with the Mediterranean. The country’s direct access to the Adriatic Sea makes it even more appealing as a business destination.
• Croatia has high-quality transportation and logistics infrastructures, including six major seaports, four river ports, seven international airports, and a modern highway network of over 1,300 kilometers. The Croatian government is heavily investing in infrastructure, notably in the development and expansion of seaports, which represent one of Croatia’s major strengths.
• Croatia has a world-renowned telecommunications infrastructure. It is considered to be a highly-digitized country and has 100% fixed broadband internet coverage. While the average download speed of internet connections in Croatia stands at around 65 Mbps, it is highly reliable and can be accessed throughout the entire Croatian territory.
• As the newest EU member, Croatia has unlimited access to the EU market and the business opportunities it provides. Businesses expanding in Croatia gain unrestricted access to a consumer market of more than 450 million people. They can also benefit from all the EU regulations that are in place to attract and protect investors.
• As a full member of the NATO alliance, Croatia enjoys great stability and security that guarantees the safety of any business activity and investment. Croatia also enjoys remarkable macroeconomic stability. The country has quickly recovered from the COVID-19 pandemic and recorded estimated GDP growth of 10.9% in 2021. Moreover, Croatia is set to adopt the Euro as its official currency in 2023.

Minimum Wage and Payroll

• The national minimum wage in Croatia is set at HRK 4,687.5 (EUR 624).
• Salaries in Croatia are paid monthly, no later than the 15^th of the following month.

Social Contributions and Taxes

Employer Contributions
Health Insurance	16.5%
Employee Contributions
Generation Solidarity Fund	15.0%
Individual Capital Fund	5.0%
Total	20.0%
Employee Income Tax
Up to HRK 360,000 per year (EUR 47,915)	20.0%
More than HRK 360,000	30.0%

 

Working Hours and Overtime

• The standard working limit in Croatia is 40 hours per week divided into five days. If a job requires more working hours, employers must obtain written permission from their employees.
• Any work above the standard working limit has to be paid as overtime. The payment rate for overtime work is regulated by the employment contract.
• Overtime work cannot exceed 10 hours per week and 180 hours per year.

Vacation Days

• Employees in Croatia are entitled to 20 days of paid leave per year, following their first six months of service.
• Croatia celebrates 12 public holidays:
  • New Year’s Day: January 1^st
  • Epiphany: January 6^th
  • Easter Monday: Between March and April (moveable)
  • Labor Day: May 1^st
  • Statehood Day: May 30^th
  • Corpus Christi: Between May and June (moveable)
  • Anti-Fascist Struggle Day: June 22^nd
  • Victory and Homeland Thanksgiving Day: August 5^th
  • Assumption of Mary: August 15^th
  • All Saints’ Day: November 1^st
  • Remembrance Day: November 18^th
  • Christmas Holiday: December 25^th – December 26^th

Parental Leave and Sick Leave

• Expectant mothers in Croatia are entitled to 98 days of paid maternity leave, including 28 days before delivery (or 45 days in special circumstances, based on medical opinion) and 70 days afterward, covered fully by social security. After 70 days, the mother can continue the leave unpaid until the child is six months old or share it with the father. However, it is common for employers to pay for this period as well as an additional social benefit.
• Parents have the right to take a total of 120 days of paid parental leave per child during the first eight years after their birth. Pay during parental leave is halved.
• Employees can take 42 days of sick leave per year, paid by the employer at a rate of 70% of the regular salary. If the employees need a longer sick leave, it is paid by the employer and reimbursed by social security.

Notice Period

• The notice period for resigning employees in Croatia varies depending on the duration of service. It is set at two weeks for employees with one year of employment, six weeks after two years, eight weeks after five years, 10 weeks after 10 years, and 12 weeks after 20 years.
• Employees over the age of 50 are required to give two additional weeks of notice, while employees over 55 have to give four additional weeks.