Payroll in Croatia

Interested in payroll services in Croatia? Our specialists are at your disposal with information if you want to open a company in Croatia and need such services. 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 documents 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. Plus, we are here to help you with the process of company formation in Croatia at any time.

Post-payroll stages in Croatia

Once the necessary documents have been drawn up and signed by the company’s management and the financial department, the actual payment is made. In Croatia, salary payments are made once a month, and a payroll specialist in Croatia can use programs and platforms dedicated to this. All financial information related to the payment of salaries must be recorded. Thus, the next step in this sense concerns the Croatian accountant and the documents he has to prepare and archive.

Payroll reporting and compliance is another stage of this payroll process in Croatia. There are financial authorities in Croatia that require periodic reporting on certain dates. A payroll expert in Croatia knows these aspects and knows what information to present and when.

The minimum wage in Croatia

In Croatia, the minimum wage is set at EUR 840. 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.

Types of leaves and holidays in Croatia

Here are some of the legal holidays and paid leaves in Croatia:

• Sick leave is paid with 70% of the salary. 42 days of sick leave paid by the employer are allowed, after which the employee can benefit from health insurance funds and money offered.
• Employees in Croatia are entitled to 20 paid days off per year.
• Women have the right to 115 days of paid maternity leave in Croatia and 28 days before giving birth.
• Fathers have the right to take paternity leave in Croatia until the child turns 6 months old and after the mother passes the first 70 days of postnatal leave.
• 7 days off are offered for citizens who get married in Croatia.
• In Croatia, there are 15 public holidays paid by the employer. These are offered in addition to the 20 days of leave to which the employees are entitled. There is also the possibility of extra payment for those who work on public holidays.

We invite you to learn more about the rights of employees in a company from our specialists in HR administration and payroll. You have our support available if you want to set up a company in Croatia and you want to know some essential information about Employment Law in this country.

How is an employment contract concluded in Croatia?

The notification period for employees who are about to leave the company is 30 days. There are also special cases in which, for example, those who have been in the company for a year can notify their departure or they can be notified two weeks in advance. An employment contract in Croatia can be concluded for various reasons, most of them related to work activities. But if both parties reach an agreement, they can sign an additional act and the liquidation form in which all aspects are specified.

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 2023 show an employment rate of approximately 66.5%.
2. The unemployment rate in Croatia was set at around 6.5% for men and 7.9% for women according to data for December 2023.
3. There are around 1,770,489 people active in the labor field in Croatia.

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