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Payroll in Croatia

Payroll in Croatia

Interested in payroll services in Croatia? Our specialists are at your disposal with information and complete services for the company you own in this country. Payroll in Croatia involves a series of formalities, procedures, and tasks, with the help of which salaries are distributed to employees’ accounts. In the following lines, you can read some information about this subject, remembering at the same time that you can benefit from the services offered by our accountants in Croatia.

What is payroll and how are salaries paid in Croatia

Payroll in Croatia involves the procedures for calculating and delivering salaries in a company. Here you will need the services offered by a specialist in the field, respectively by our company, in exchange for the establishment of a department in this sense. Here are the steps involved in payroll in Croatia:

  1. Before the salaries are delivered, the related taxes will be calculated. Our specialists use dedicated software and automated platforms in this regard.
  2. Among the taxes paid by the employee and the employer, we mention social security contributions, personal income tax, unemployment contribution, pension fund, etc.
  3. Payslips are the supporting document for employees’ salaries. It must contain the gross amount depending on the hours worked, the taxes imposed, and then the net amount.
  4. Once the payslips are accepted by the company’s managers, the salaries are distributed, according to the respective company’s regulations.

In Croatia, salaries are paid monthly, but there are exceptions, depending on the company and its rules, where they are delivered twice a month. You can learn more about payroll in Croatia from one of our specialists in accounting and human resources.

The minimum wage in Croatia

In Croatia, the net salary is set somewhere around EUR 546. However, the salary differences are caused by the categories of employees, as well as their experience. In the case of foreign workers, according to the Law on Foreigners, the gross salary must be equal to at least 1.5 of the average gross salary paid in Croatia, considering the salaries a year ago.

Part-time employees are also accepted in Croatia, but there is no number of hours that a worker must complete.

Employment procedures in Croatia

The Employment Law in Croatia mentions the following:

  1. Companies must hold all employee registration documents and present them in the event of an inspection.
  2. Any employee in Croatia must sign an employment contract, full-time or part-time, first of all. This document contains information about the employing company, the type of work, hours worked, working conditions, and remuneration.
  3. Overtime is paid in Croatian companies, and the total working hours should not exceed 50 hours per week.

Foreigners who work in Croatia

In the case of foreign employees in Croatia, the taxation of income is done only for those registered in this country. As in the case of local workers, annual leave is a right of the employee, if he has worked in the company for at least 6 months.

Here are some statistical data about employment in Croatia:

  1. The data for the 4th quarter of 2022 show an employment rate of approximately 65.6%.
  2. The unemployment rate in Croatia was set at around 2.6%, according to data for December 2022.
  3. Around 86% represents the part-time employment rate

Do you want more information about payroll in Croatia? Please contact us online or by phone and talk to our specialists.