EOR Service in Croatia

Shraddha Saxena

Hire, Onboard and Pay Employees in Croatia Quickly and Efficiently

Hiring in Croatia at a glance

CURRENCY
Croatian Kuna (HRK)
working hours
Generally 40 hours per week
public/bank holidays
13 national holidays
capital
Zagreb
language
Croatian
date format
remote workers
1.2M
tax year
minimum hourly salary
No minimum wage
CURRENCY
Croatian Kuna (HRK)
public/bank holidays
13 national holidays
capital
Zagreb
language
Croatian
date format
tax year
payroll frequency
Monthly
GDP
$68.96B (2021)
working hours
Generally 40 hours per week

Employer of Record in Croatia

It is no secret, but starting a local entity to hire from Croatia is costly. Hence, companies partner with an EOR in Croatia to hire local talent without a local entity. On your behalf, a Croatian EOR will onboard local talent on their own entity and act as the primary employer. This means the EOR will take on all the legal responsibilities and risks of being an employer for your employees, allowing you to focus on managing the day-to-day activities.

Why use Croatia EOR?

Croatia boasts a robust talent landscape with employable graduates and a young population. Besides starting a local entity, employers also need to create compliant employment contracts and payroll processes and to stay in compliance. 

Croatia, like many other countries in Europe, is an employee-friendly market. Strict regulations around wages, maternity leaves and paid leaves need employers to perform due diligence. Particularly for employers from business-friendly nations, this can be challenging. 

For example, there are no federally mandated minimum wages and overtime in the USA. However, Croatian laws mandate employers to pay above the minimum wage and pay at a rate of 150% of the standard hourly rate. Moreover, trade unions and their Collective Bargaining Agreements play a significant role, especially in larger companies. For example, CBAs often outline the minimum wage thresholds for different professions within an industry. This could be different to the national minimum wage.

By leveraging a Croatian EOR, employers can offload preparing employment contracts, and payrolling amid such complicated labor laws. By entrusting your HR tasks to the experts, you can optimize your operations, minimize administrative complexities, and concentrate on achieving your business objectives.


EOR Costs in Croatia

The cost of Croatia EOR/PEO services in Croatia may differ based on various factors, such as the number of employees, the extent of services needed, and the intricacy of the project. The pricing structure for Croatia EOR/PEO services usually involves a monthly fee per employee or a percentage of the employee's salary. Extra charges may apply for additional services or customization.

Key Metrics For Foreign Employers in Croatia

Whether you're in need of professionals in IT, engineering, finance, or other fields, you can find qualified individuals in Croatia to support your business growth. Their economics stability, low labor costs, and business-friendly climate that Croatia offers make it an attractive option for multinational corporations considering international growth. 

Factors Global Ranking Interpretation
Rule of law

Labour-employer cooperation

Reading Maths, and Science

University Ranking

Labour productivity per employee

Ease of finding skilled employees

Workforce with tertiary education

Digital Skills
51

124

36

69

41

124

50

27
Indicates effectiveness of law enforcement

Indicates positive labor-employee relationships

Indicates average scores in OECD's survey of 15-year-old students

Indicates average QS rankings

Indicates total output by the total labour input used to produce that output

Indicates findability of skilled talent

Indicates % of the workforce with PG degrees

Indicates the prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through Gloroots' Recrew platform, you have the opportunity to discover remarkable talent in Croatia.

Why work in Croatia ?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Risks of misclassification

The term "misclassification of employees" refers to the inaccurate classification of workers by their employers. Misclassification occurs when an employer categorizes a worker as an independent contractor or exempts them from certain employment laws and benefits, even if the worker should be classified as an employee and entitled to legal protections, benefits, and rights.

Utilizing a PEO/EOR in Croatia helps mitigate the risks associated with misclassification by ensuring compliance with labour laws, proper employee classification, accurate payroll processing, and access to comprehensive benefits. This enables businesses to focus on their core operations while entrusting employment-related responsibilities to experienced professionals.

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Employing in Croatia

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Corporate tax & VAT

Type of tax Tax (%) Details
Corporate Tax 18 % Standard rate for corporate tax
VAT 25 % Standard rate for Value Added Tax (VAT)

Income tax

Salary slab Income Tax %
Up to EUR 47,780.28 20 %
Over EUR 47,780.28 30 %

Social security contributions

Contributor Contribution (%) Details
Employers 16.5 % Contribution to health and unemployment fund
Employees 20 % Contribution to the pension fund

Separation

Employment Termination and Severance

The law in Croatia acknowledges a number of different reasons for an employment relationship to come to an end, including but not limited to:

  • Expiration of a fixed-term contract
  • Employee's resignation
  • Parties' mutual consent
  • Underperformance
  • Serious misconduct
  • Breach of employment contract
  • Redundancy due to adverse economic conditions
  • Unsatisfactory probation period

The notice period might be anywhere from seven days to four months long, depending on how long the employee has been with the company. Only workers with over two years of service who were let go for reasons other than misbehavior are required to receive severance compensation when their employment ends. The amount of the payout is determined by taking one-third of the typical monthly wage and multiplying that number by the number of years of service.

Notice period

In Croatia, notice period varies with employment duration.

Employment duration Notice period
During probation

< 1 year

< 2 years

< 5 years

< 10 years

< 20 years
7 days

2 weeks

6 weeks

8 weeks

10 weeks

12 weeks

Probation period

The probationary period should not exceed Six months.

Start Hiring in Croatia today

When it comes to global hiring, ensuring compliance can be a challenging endeavor. Employers must navigate through employment laws, payroll procedures, DE&I compliance, GDPR, and other regulations to ensure a smooth onboarding process. Setting up the necessary infrastructure and staying abreast of the ever-changing compliance landscape can add further complexity to the task at hand.

At Gloroots, we are here to simplify the process for you. Our comprehensive solutions provide a centralized platform to effectively manage all aspects of hiring. With our in-house experts, you can confidently navigate cross-border employment and payroll compliance risks. We will assist you in generating employment contracts, ensuring timely payments, and offering compliant benefits, allowing you to focus on talent screening and selection.

Our commitment is to provide you and your employees with a seamless global employment experience.

Contact our experts today to kickstart your global hiring campaign in Croatia.

Grow your team in Croatia

Growing a team means hiring the right employees at the right time and for the appropriate positions. Employers in Croatia must have a local legal organization and use local resources to handle compliance, payroll, tax, and benefits management. The complexity of employment regulations in Croatia makes compliance with employment laws demanding.

With Gloroots’s global Employer of Record (EoR) service, you can let Gloroots do the heavy lifting of payroll, tax, benefits, and compliance and concentrate on what matters to you most: your employees and company growth.

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Experience Seamless Hiring in Croatia ?

Let us take care of all your employment needs. We guarantee easy onboarding & compliant workforce management in Croatia .

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