
Lucas Botzen
Founder & Managing Director
Last updated:
September 20, 2025
What is an Employer of Record in Croatia?
View our Employer of Record servicesAn Employer of Record, or EOR, is a company that helps you hire employees in another country. If you want to hire someone in Croatia but your company doesn't have a legal entity there, an EOR can help. The EOR becomes the legal employer for your team member. It handles all the local HR tasks like payroll, taxes, benefits, and compliance with Croatian labor laws. This lets you focus on your business while the EOR manages the employment details.
Rivermate is an EOR provider that can help you hire in Croatia. You can learn more at https://rivermate.com/employer-of-record.
How an Employer of Record (EOR) Works in Croatia
Using an EOR simplifies hiring in Croatia. Here is how the process usually works.
- You find the candidate you want to hire in Croatia.
- The EOR legally hires the employee on your behalf through their local Croatian entity.
- They provide a legally compliant employment contract that meets all Croatian labor standards.
- The EOR manages payroll, taxes, social security contributions, and benefits for your employee.
- Your company directs the employee's daily tasks and responsibilities.
- The EOR ensures everything stays compliant with local employment regulations, so you don't have to.
Benefits of Using an EOR for Hiring in Croatia
Using an EOR gives you a straightforward way to grow your team in Croatia. It removes many of the usual challenges of international hiring. You get to build your team faster while the EOR handles the complex local rules.
- Enter the Market Quickly You can hire employees in Croatia without the time and expense of setting up your own local company.
- Ensure Compliance EORs are experts in Croatian labor law. They make sure your hiring practices are fully compliant, reducing legal risks.
- Reduce Admin Work The EOR takes care of all HR administration. This includes payroll, tax filings, and benefits management, freeing up your time.
- Scale with Flexibility An EOR allows you to expand your team easily. It also gives you the flexibility to scale back without the difficulty of closing a legal entity.
Responsibilities of an Employer of Record
As an Employer of Record in Croatia, Rivermate is responsible for:
- Creating and managing the employment contracts
- Running the monthly payroll
- Providing local and global benefits
- Ensuring 100% local compliance
- Providing local HR support
Responsibilities of the company that hires the employee
As the company that hires the employee through the Employer of Record, you are responsible for:
- Day-to-day management of the employee
- Work assignments
- Performance management
- Training and development
Costs of using an Employer of Record in Croatia
Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Croatia includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Croatia.
Employ top talent in Croatia through our Employer of Record service
Book a call with our EOR experts to learn more about how we can help you in Croatia







Book a call with our EOR experts to learn more about how we can help you in Croatia.
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Hiring in Croatia
Hiring in Croatia is a strategic move for many companies. Its membership in the European Union opens up a large talent pool, and the country has a growing tech scene. Croatians value a healthy work-life balance, with a standard 40-hour workweek. When you decide to hire here, you can either set up your own local entity or partner with an Employer of Record (EOR). An EOR allows you to enter the market quickly, handling payroll, taxes, and compliance for you.
Employment contracts & must-have clauses
You must provide a written employment contract in Croatian. While verbal agreements can exist, key terms and specific contract types require written documentation to be enforceable. If you don't provide a written contract, the law considers the employment to be for an indefinite term.
Your contracts can be for a fixed term or an indefinite period. You can have a maximum of three consecutive fixed-term contracts, and their total duration cannot exceed three years.
Make sure every employment contract includes these essential clauses:
- Parties involved: The names and addresses of your company and the employee.
- Place of work: Where the employee will be based.
- Job details: The job title and a description of the work.
- Start date: The first day of employment.
- Contract duration: Specify if it's a fixed-term or indefinite contract.
- Salary: The gross salary, including any allowances and payment schedules.
- Working hours: The expected daily and weekly hours.
- Annual leave: The amount of paid vacation time.
- Notice periods: The process and timeline for termination.
Probation periods
You can include a probation period in an employment contract to see if a new hire is a good fit.
- The maximum length of a probation period is six months.
- If an employee is absent for an extended time (like sick leave), you can extend the probation period by the amount of time they were away.
- During probation, the notice period for termination is shorter, typically at least seven days.
Working hours & overtime
A standard workweek in Croatia is 40 hours, usually spread over five days.
- Overtime: You can ask employees to work overtime, but it's regulated. The weekly limit, including overtime, is 50 hours. Annually, overtime is capped at 180 hours, though a collective agreement can increase this to 250 hours.
- Overtime Pay: The law does not set a specific rate for overtime pay; this should be defined in the employment contract or a collective agreement.
- Consent for Overtime: Certain employees, like pregnant workers and parents of young children, must provide written consent to work overtime.
- Breaks: Employees working at least six hours a day get a paid 30-minute break. They are also entitled to a daily rest period of at least 12 hours.
Public & regional holidays
Employees in Croatia are entitled to paid time off for public holidays. The official public holidays for 2024 are:
Date | Holiday |
---|---|
January 1 | New Year's Day |
January 6 | Epiphany |
March 31 | Easter Sunday |
April 1 | Easter Monday |
May 1 | Labour Day |
May 30 | Statehood Day & Corpus Christi |
June 22 | Anti-Fascist Struggle Day |
August 5 | Victory and Homeland Thanksgiving Day |
August 15 | Assumption of Mary |
November 1 | All Saints' Day |
November 18 | Remembrance Day |
December 25 | Christmas Day |
December 26 | St. Stephen's Day |
Hiring contractors in Croatia
You can hire independent contractors for specific projects, which offers flexibility. However, you must classify them correctly. An independent contractor runs their own business, works for multiple clients, and uses their own tools. They are not covered by Croatian labor laws, meaning they don't get benefits like paid leave or minimum wage.
The biggest risk is misclassification. If authorities determine a contractor is actually a "disguised employee" because you control their work, hours, and location, you face serious penalties. These can include fines, back payment of taxes and social contributions, and being forced to provide full employment benefits.
An Employer of Record (EOR) helps you avoid this risk. An EOR can hire workers on your behalf, ensuring they are classified correctly and that you comply with all local labor laws. This lets you work with talent in Croatia without the legal and administrative burden of misclassification.
Compensation and Payroll in Croatia
In Croatia, you pay your employees monthly in Euros. You must deposit their salary into a local Croatian bank account. This is a key part of managing your payroll in the country. The system is a mix of national laws and EU regulations. Since Croatia adopted the Euro in 2023, staying updated on payment practices is important.
Payroll cycles & wage structure
You should pay your employees once a month. The law requires you to pay salaries by the 15th of the month for the previous month's work. All payments must be made via bank transfer. You are also required to give each employee a payslip that details their gross earnings, deductions, and net pay.
A typical compensation structure in Croatia includes the base salary plus other potential elements:
- 13th-month salary: While not required by law, many companies provide a Christmas bonus, often equal to a month's salary.
- Meal allowances: It is common practice to offer meal vouchers or allowances as a tax-friendly benefit.
- Holiday pay: You must provide extra pay for work done on Croatia's national holidays.
Overtime & minimums
Standard working hours in Croatia are 40 hours per week. If you require an employee to work more than that, you must pay them for overtime. The minimum overtime rate is 50% above the employee's regular hourly pay. Collective agreements or individual contracts can set a higher rate.
As of January 1, 2025, the national gross minimum wage is set at 970 EUR per month.
Employer taxes and contributions
As an employer, you pay social security contributions on top of the employee's gross salary. These contributions cover pensions and health insurance.
Contribution | Rate |
---|---|
Health Insurance | 16.5% |
Pension Fund (Pillar I) | 15% |
Pension Fund (Pillar II) | 5% |
Employee taxes and deductions
Employees also contribute to social security from their gross salary. They also pay income tax.
Deduction | Rate | Notes |
---|---|---|
Pension Insurance | 20% of gross salary | This is a mandatory contribution. |
Income Tax | 20% and 30% | The rate depends on the income level. A basic personal allowance of 560 EUR per month is not taxed. |
Local Surtax | Varies (up to 18%) | This is an additional tax on the income tax amount, and the rate depends on the city where the employee lives. |
How an Employer of Record, like Rivermate can help with payroll taxes and compliance in Croatia
An Employer of Record (EOR) manages monthly payroll calculations, employer contributions, and tax filings in-country on your behalf. Rivermate handles registrations, payslips, statutory reporting, and remittances to authorities so you stay compliant with local rules and deadlines—without setting up a local entity. Our specialists monitor regulatory changes and ensure correct rates, thresholds, and caps are applied to every payroll cycle.
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Benefits and Leave in Croatia
In Croatia, the benefits and leave you offer your team are a mix of government-required entitlements and extra perks. The law sets the minimum standards for things like vacation time and sick days. To attract and keep the best talent, many companies offer more than the basics. This shows employees you value their well-being and creates a better work environment.
Statutory leave
Croatian law outlines several types of mandatory leave for employees.
- Annual Leave: Employees get a minimum of four weeks of paid vacation each year after they have worked for you for six months. You can offer more than this, and it should be noted in the employment contract. Unused vacation days can be carried over, but your employee must use them by June 30th of the following year.
- Sick Leave: An employee can take up to 42 days of sick leave. You pay at least 70% of their regular salary during this time. If they are sick for longer than 42 days, the Croatian Health Insurance Fund covers the cost.
- Maternity Leave: Pregnant employees can start their leave 28 to 45 days before their due date. After the baby is born, they are entitled to 70 days of maternity leave. This leave is paid.
- Bereavement Leave: Employees can take up to seven days of paid leave if an immediate family member passes away.
Public holidays & regional holidays
Your employees are entitled to paid time off for public holidays. If they have to work on one of these days, they are entitled to higher pay.
Holiday | 2025 Date |
---|---|
New Year's Day | January 1 |
Epiphany | January 6 |
Easter Sunday | April 20 |
Easter Monday | April 21 |
Labour Day | May 1 |
Statehood Day | May 30 |
Corpus Christi | June 19 |
Anti-Fascist Struggle Day | June 22 |
Victory & Homeland Thanksgiving | August 5 |
Assumption of Mary | August 15 |
All Saints' Day | November 1 |
Homeland War Victims' Day | November 18 |
Christmas Day | December 25 |
St. Stephen's Day | December 26 |
This table does not include regional holidays, which can vary.
Typical supplemental benefits
Here is a look at both the required benefits and the extra perks that can make your company more attractive.
Statutory Benefits | Non-Statutory (Supplemental) Benefits |
---|---|
Social security contributions | Meal allowance |
Health insurance | Transportation allowance |
Pension insurance | Additional health insurance (vision, dental) |
Unemployment insurance | Company car or car allowance |
Severance pay | Home office allowance |
--- | Childcare allowance |
--- | Wellness programs (gym memberships) |
--- | Voluntary pension contributions |
How an EOR can help with setting up benefits
Setting up a benefits package in a new country can be complicated. An Employer of Record (EOR) simplifies this process for you.
An EOR already understands the local laws and employee expectations in Croatia. We handle the administrative work of enrolling your employees in mandatory benefits like health insurance and social security. We can also advise you on supplemental benefits that are competitive in the local market. This saves you time and reduces the risk of non-compliance. We take care of the paperwork so you can focus on supporting your team.
How an Employer of Record, like Rivermate can help with local benefits in Croatia
Rivermate provides compliant, locally competitive benefits—such as health insurance, pension, and statutory coverages—integrated into one EOR platform. We administer enrollments, manage renewals, and ensure contributions and withholdings meet country requirements so your team receives the right benefits without added overhead.
Termination and Offboarding in Croatia
When you part ways with an employee in Croatia, you need to follow a structured process. It’s not just about saying goodbye; it’s about ensuring you meet all legal requirements to avoid any complications. You must provide a written notice of dismissal that clearly states the reasons for the termination. The process also involves de-registering the employee from the Tax and Insurance Authorities and paying out any final salaries, unused vacation time, and severance that are due.
Notice periods
You must give employees a notice period before their employment ends. The length of this period depends on how long the employee has worked for your company.
Here is a breakdown of the minimum notice periods:
- Less than 1 year of service: 2 weeks
- 1 year of service: 4 weeks
- 2 years of service: 6 weeks
- 5 years of service: 8 weeks
- 10 years of service: 10 weeks
- 20 or more years of service: 12 weeks
For employees on probation, the notice period is seven days. In cases of serious misconduct, you can terminate an employment contract immediately, without a notice period.
Severance pay
Employees who have worked for you for at least two years are entitled to severance pay. The amount is calculated as one-third of their average monthly salary for each year they have worked for you. For example, an employee who has been with your company for 12 years would receive four months' wages as severance.
How Rivermate handles compliant exits
Navigating the details of Croatian labor law can be complex. We make sure every termination is handled correctly and in full compliance with local regulations.
Here’s how we help you manage the offboarding process:
- Legal expertise: We ensure that all termination procedures align with Croatian labor laws.
- Proper notice and pay: We calculate and provide the correct notice period and any severance pay owed to the employee.
- Administrative tasks: We handle the final payment processing, including accrued leave and other benefits.
- Documentation: We prepare and maintain all necessary documentation related to the termination to ensure you are fully compliant.
Visa and work permits in Croatia
Navigating the world of visas and work permits in Croatia can feel complicated. Put simply, if you are not a citizen of the EU or EEA, you will need permission to work in the country. This usually means getting a combined stay and work permit. Think of this as your main ticket to legally live and work in Croatia. The process involves your employer proving they couldn't find a suitable local candidate for your job.
Employment visas & sponsorship realities
When it comes to getting a work permit, you need a sponsor. This sponsor must be a legally registered company in Croatia. This is where an Employer of Record (EOR) comes in.
An EOR can act as your legal employer in Croatia, even if the company you work for is based elsewhere. This means the EOR can sponsor your work permit application. They handle the necessary steps, like the labor market test and dealing with local authorities.
Here are the practical routes for different types of workers:
- Full-Time Employees: This is the most common path. A company or an EOR with a registered entity in Croatia can sponsor your stay and work permit. These permits are usually valid for up to one year and can be renewed.
- Highly-Skilled Workers: If you are a highly qualified professional, you might be eligible for an EU Blue Card. This is a special permit valid for two years, offering a more stable option.
- Digital Nomads: Croatia offers a temporary residence permit for remote workers whose employer is not based in Croatia. This permit is for up to one year.
- Independent Contractors: This is a different path. Contractors cannot be sponsored for a standard work permit and must register themselves through a separate process.
An EOR cannot sponsor independent contractors for a work permit. The permit is always tied to a specific job and employer.
Business travel compliance
If you are visiting Croatia for short-term business, the rules are different. You likely will not need a work permit for activities like attending meetings, conferences, or negotiations.
For these short visits, a Schengen short-stay visa (Type C) is typically what you'll need. This visa allows you to stay in the Schengen Area, which includes Croatia, for up to 90 days within a 180-day period.
It is important to remember that this visa does not allow you to work. It is strictly for business-related travel. Always check the specific entry requirements for your nationality before you travel.
How an Employer of Record, like Rivermate can help with work permits in Croatia
Navigating work permits can be complex and time‑sensitive. Rivermate coordinates the entire process end‑to‑end: determining the right visa category, preparing employer and employee documentation, liaising with local authorities, and ensuring full compliance with country‑specific rules. Our in‑country experts accelerate timelines, minimize refusals, and keep you updated on each milestone so your hire can start on time—legally and confidently.
Frequently asked questions about EOR in Croatia
About the author

Lucas Botzen
Lucas Botzen is the founder of Rivermate, a global HR platform specializing in international payroll, compliance, and benefits management for remote companies. He previously co-founded and successfully exited Boloo, scaling it to over €2 million in annual revenue. Lucas is passionate about technology, automation, and remote work, advocating for innovative digital solutions that streamline global employment.