HR Software for Croatia
Leave Policy
Maternity Leave
Pregnant employees are entitled to 98 days of paid leave. 28 days must be taken before the birth of the child. 70 days must be taken after the birth of the child. The employee receives 100% of her average salary (based on the last 6 months) during this period and the Croatian Health Insurance Fund (HZZO) is responsible for payment.
The employee can extend the vacation by taking parental leave.
You can use the leave module in IceHrm to manage maternity leave in Croatia.
Paternity Leave
There is currently no statutory paternity leave.
Parental Leave
Employees are entitled to 8 months for the first and second children and 30 months for twins or each additional child after the first two parental leaves. Both parents can take parental leave, each for 4 or 15 months. If this right is exercised by only one parent, the leave can last only 6 or 30 months. During the first six months of parental leave, compensation is paid equal to 100% of the average salary (based on the last six months), up to a maximum of HRK 5,654.20 per month. For the remainder of the vacation, employees receive 70% of their average salary.
The Croatian Health Insurance Fund (HZZO) is responsible for this payment.
Parental leave cannot be extended.
Sick Leave
Employees are entitled to up to 42 days of paid sick leave and long-term illness benefits after 42 days. This vacation is paid at different rates and by different payers:
| Period | Pay (% of base salary) | Payer |
|---|---|---|
| First 42 days | At least 70%, based on the employment contract | Employer |
| After 42 days | The income replacement benefit is calculated | Employer reimbursement by the Croatian Health Insurance Fund (HZZO) |
Pay & Tax
Minimum Wage Requirements
The minimum wage for full-time employees in 2024 is EUR 840 gross per month. For part-time employees the amount is calculated pro rata.
Individual Income Tax
Income tax rates in Croatia depend on the employee’s place of residence. The following tax rates apply to monthly income:
| 2024 Tax Rate | |
|---|---|
| Monthly Income up to €4,200 | 15% – 23.6% |
| Monthly Income €4,201 and over | 25% – 35.4% |
| Tax Free Allowance | €560 |
Payroll Cost
The cost to the employer is generally estimated at 7.3% of the employee’s salary.
- Health insurance – 7.3%
Conditional costs:
Expenses tax surcharge: Variable depending on the employee’s salary. This is an additional amount intended to cover the income taxes that the employee must pay to pay the reimbursed expenses.
Overtime Pay & Maximum Hours
The standard working hours are 8 hours per day and 40 hours per week. The normal working week lasts from Monday to Friday.
Termination
Termination Requirements
Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps for specific termination cases.
Terminations in Croatia can be complex. Outside the probationary period, employers in Croatia cannot terminate at their own discretion and the termination must be for a valid reason.
Proper terminations are:
- Voluntary by the employee
- By mutual agreement
- Unilaterally by the employer due to:
1. Economic, technical or organizational reasons eliminating the need for the employee’s job
2. The employee is no longer able to perform his or her duties due to his or her abilities or character
3. The employee violates his obligations under the employment relationship - Through expiry of the contract
Notice Period
The notice period is at least 2 weeks and increases depending on the length of the employment relationship.
| Length of Employment | Notice Period |
|---|---|
| Probation Period | 7 days |
| Less than 1 year | 14 days |
| Consecutively worked for 1 year | 14 days |
| Consecutively worked for 2 years | 42 days |
| Consecutively worked for 5 years | 56 days |
| Consecutively worked for 10 years | 70 days |
| Consecutively worked for 20 years* | 90 days |
The specified periods are shortened by half if the employee’s employment contract is terminated due to a breach of employment obligations, if it is a dismissal due to the employee’s misconduct
If the employee terminates the employment contract, the notice period is one month.
- If the employee has reached the age of 50, this period is extended by another 2 weeks, and if the employee has reached the age of 55.
Severance for Employees
In Croatia, employees are entitled to severance pay if the following conditions are met:
- The employer terminates the employment contract
- The dismissal is not caused by the employee’s behavior
- The employee has worked continuously for at least 2 years for the employer terminating the contract.
The severance payment depends on the length of employment with the same employer. The statutory minimum severance payment is one third of the monthly salary (average of the last 3 months) per year of employment. The maximum severance payment is 6 months’ salary, unless otherwise stipulated by law, statutes, collective agreement or employment contract.
Statutory Time Off
Paid Time Off
Both full-time and part-time employees are entitled to 20 days of paid time off (PTO) per year. The PTO is credited monthly at 1.67 days per month, pro rata for part-time employees.
Public Holidays
There are 13 public holidays celebrated in Croatia. National holidays are:
- New Year’s Day
- Epiphany
- Easter Monday
- Labor Day
- National Day
- Corpus Christi
- Day of Anti-Fascist Struggle
- Victory Day & Patriotic Gratitude & Veteran’s Day
- Assumption Day
- All Saints’ Day
- Memorial Day for the Victims of the Homeland War
- Christmas Day
- St. Stephen’s Day
Onboarding
Onboarding
Onboarding takes 3 working days.
Additional Info
Employment Contract Details
The contracts must be drawn up in Croatian and can be bilingual. They must be in writing and signed by both parties.
A contract must contain:
- Surname
- Position and job description
- Commitments
- Place of work
- Start and duration of the employment relationship
- Working hours
- Wages and other benefits
- Additional compensation and reimbursement of costs
- Vacation and time off
- Conditions for termination of employment
Probation Period
The probationary period is not mandatory. There is no minimum probation period. The maximum duration of the probationary period is 6 months.