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Compensation & Benefits in HrCroatia.






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As an employer in Croatia, it’s essential to understand the various employment laws, compensation directives, and social security provisions. When it’s time to determine employees’ compensation and benefits, an employer will need to consider both statutory and optional benefits.

Croatia compensation laws

As of January 1, 2023, Croatia adopted the euro as its currency and established compensation laws that dictate a monthly minimum wage of EUR 700.

Employers can negotiate a raise or bonuses in the employment contract or by collective agreement. Employees often receive performance-based bonuses. Although not a law, many employers in Croatia will give employees yearly raises based on service.

The standard workweek in Croatia is 40 hours over 5 or 6 days. Any work performed after 8 hours per day counts as overtime and should be paid at an increased rate. Specific laws exist restricting working hours which must be considered when employees work overtime.

Guaranteed benefits in Croatia

Croatia’s health insurance is part of the country’s mandatory employer social insurances. Social security contributions include a pension insurance, health insurance, insurance at work, and unemployment.

Employers are free to offer a package of additional benefits that suit the needs of their company. Common options benefits include but are not limited to:

  • Car allowance or leased vehicle
  • Cell phone
  • Contributions towards accommodation
  • Contributions towards utility bills
  • Enhanced medical provisions such as dental insurance
  • Enhanced pension contributions
  • Meal and retail vouchers

Some benefits are exempted from tax contributions.

Another guaranteed entitlement is paid time off. Employees are entitled to a statutory minimum annual leave of 4 weeks per calendar year – up to 7 days of leave per calendar year for important personal events and public holidays.

Croatia benefits management

Once you get establish guaranteed benefits in order, Croatia benefits management also includes any supplemental benefits. These additional benefits help you bring in top talent and keep your employees happy. For example, employees in Croatia often look for these benefits:

  • A company car
  • A cell phone
  • Performance-related bonuses
  • Cash, company products, or shopping coupons on certain holidays

Restrictions for benefits and compensation

Understanding what limitations exist for key factors such as working hours and severance pay is another aspect of Croatia benefits management. Instead of learning about Croatia benefits management and restrictions yourself, you can work with G-P. Our Global Growth Platform™ will help you source the best benefits for your employees and make sure you stay compliant.

Partner with G-P to build your everywhere workforce.

As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading Global Growth Platform™ is powered by the first fully customizable suite of global employment products and backed by the industry’s largest team of in-country HR and legal experts to streamline payroll management and help you offer competitive, compliant local benefits.

Learn more about our platform and request a proposal today.


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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