As an employer in Croatia, you’ll need to understand the various labor acts, wage directives, social security acts, and employment protection acts. When it’s time to determine employees’ compensation and benefits, you’ll need to consider both statutory benefits and additional options.
Instead of handling compensation and benefits on your own, choose Croatia compensation outsourcing with Globalization Partners. As a global PEO, we will manage your payroll and benefits while making sure you stay compliant.
Croatia Compensation Laws
Croatia compensation laws dictate a monthly minimum wage of 4,250 HRK or 562.80 EUR (2021), which currently translates to about $680 in US currency. You can negotiate a raise or bonuses in the employment contract or by collective agreement. However, a 13th-month bonus is not standard in Croatia. Employees often get performance-based bonuses instead. Although not a law, many Croatian employers will give an employee yearly raises based on service.
The standard workweek in Croatia is 40 hours over five or six days. Any work performed after eight hours per day counts as overtime and should be paid as more than 50 percent of the employee’s salary.
Croatia’s health insurance is part of the country’s mandatory employer social insurances. Social security contributions include a pension fund, health insurance, insurance at work, and unemployment.
Croatia also has maternity benefits that include 28 days of leave before the employee’s expected delivery date and at least 70 days of maternity leave after the birth. The country has no legal requirement for paid paternity leave, but they mandate 120 days of parental leave per parent per child for an employee’s first child.
Another guaranteed benefit is time off. Employees get 28 days off for vacation, seven for personal time, and time off for 13 public holidays. As an employer, you can offer more days off for senior-level employees or increase the amount of paid vacation for each year of service.
Croatia Benefit Management
Once you get guaranteed benefits in order, Croatia benefit management also includes any supplemental benefits. These additional benefits help you bring in top talent and keep your employees happy. For example, Croatian employees often look for these benefits:
- A company car
- A cell phone
- Performance-related bonuses
- Cash, company products, or shopping coupons at Christmas and Easter
Restrictions for Benefits and Compensation
Understanding what limitations exist for aspects such as working hours and severance pay is another aspect of Croatia benefit management. Instead of learning about Croatia benefit management and restrictions yourself, you can work with a global PEO such as Globalization Partners. Our Croatia benefit outsourcing services will help you source the best benefits for your employees and make sure you stay compliant.
We act as the Employer of Record and put all the liability on our shoulders instead of yours. Rather than setting up a subsidiary, we can hire employees on your behalf to help get your business started in a matter of days instead of months.
Partner With Globalization Partners
If you want to offer great compensation and benefits in Croatia, we can help. Contact us today to learn more about our services.