Easily manage employment in Croatia

Payroll services in Croatia

Croatia has a growing economy with key industries in tourism, manufacturing, and technology. With specific labor laws and tax regulations, employers in Croatia must ensure compliance with local payroll requirements, including social security contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.

Payroll breakdown in Croatia

Employers in Croatia must adhere to national payroll regulations regarding wages, taxes, and social contributions. Below is an overview of key payroll components:

Minimum wage and working hours

• Minimum wage: Croatia’s minimum wage is HRK 700 per month.
• Payroll frequency: Salaries are generally paid monthly.
• Standard working hours: The normal workweek in Croatia is 40 hours, typically spread over five days.
• Overtime: Employees are entitled to additional pay for overtime work, calculated at 150% of the regular wage for extra hours and 200% for work on public holidays.

Taxation and social security contributions

• Personal income tax: Croatia has a progressive income tax system with rates ranging from 20% to 30% depending on income levels.
• Employer contributions:
• Pension fund: 16.5% of the gross salary.
• Health insurance: 16.5% of the gross salary.
• Employee contributions:
• Pension fund: 5% of the gross salary.
• Corporate tax: The corporate income tax rate in Croatia is 18%.
• Tax reporting: Employers must file payroll taxes and contributions with the Croatian Tax Administration regularly.

Payroll compliance in Croatia

• Employment contracts must be provided in writing and specify terms such as salary, working hours, and job responsibilities.
• Payroll deductions: Employers must ensure accurate deductions for social security and income tax.
• Employers must stay updated on changes to Croatia’s labor laws and tax regulations to avoid penalties.

Quick facts: Important considerations for employers

• Payroll frequency : Salaries are generally paid monthly.
• Currency: Payroll in Croatia is processed in Croatian Kuna (HRK).
• Tax reporting: Employers must file payroll taxes and contributions with the Croatian Tax Administration.
• Payroll deductions: Employers must ensure accurate deductions for social security and income tax.
• Payroll compliance: Employers must stay updated on changes to tax rates and reporting requirements.

Run payroll in Croatia with Remote

Managing payroll in Croatia requires careful attention to tax regulations, employment laws, and social security requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.