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Undoubtedly, payroll is a critical process for any organization. The pay cycle in Croatia refers to the period for which an organization pays its employees. This can vary depending on the pay frequency that the organization chooses to adopt.

Salaries are paid monthly by the 15th of the following month.

There is no provision for 13th salaries in Croatia.

The minimum wage in Croatia in 2023 is €700 per month.per month.

Employees are generally allowed to work up to 180 hours of overtime per year (unless agreed to in a collective agreement, in which case the maximum is 250 hours). Overtime work is compensated more generously, though the government does not specify how much more.

The Bylaw prescribes the scope of personal data that the employer must collect to keep records of employees. The records are kept for the entire duration of employment and at least six years after its termination.

Compulsory insurance contribution bases for 2023: 
With effcet from January 2, 2023, the lowest monthly bases, the highest monthly basis, and the highest annual basis for calculation of contributions for compulsory insurance are set for 2023.

Hiring is simple in Croatia. Employment law forbids discrimination, so employers must ensure all policies align with the law. Before an employer hires Croatian employees, ensure you have the right procedures and training to handle discrimination and harassment in your office.

The law requires companies to draft an employment contract written in Croatian that spells out all the terms of employment. In both the employment contract and offer letter, the company should put the wages and compensation amounts in the native Croatian Kuna instead of foreign currency.

Per Croatia employment law, an employment contract should include the following:

• The employee's permanent residence
• A description of the job
• Place of work
• Date of hiring and termination for a definite duration contract
• Amount of paid annual leave
• Salary
• Working hours
• Notices

There is no legislation governing the onboarding process, with the primary aim of ensuring that the employee is comfortable. The common practice is to go through the client's employment contract, discuss the office culture, give them a code of conduct, and outline the expectations.

The probation period depends on the role type and is stipulated within the employment agreement. In general, probation periods cannot be longer than one year.

There are 14 public holidays.

• Jan 1: New Year
• Jan 6: Epiphany
• Apr 9: Easter Sunday
• Apr 10: Easter Monday
• May 1: Labor Day
• May 30: Statehood Day
• Jun 8: Corpus Christi
• Jun 22: Anti-Fascist Struggle Day
• Aug 5: Victory Day
• Aug 15: Assumption of Mary
• Nov 1: All Saint's Day
• Nov 18: Remembrance Day for the victims of the Homeland War and Remembrance Day for the victims of Vukovar and Škabrnja
• Dec 25: Christmas Day
• Dec 26: St. Stephen's Day

The paid annual leave entitlement is dependent on the years of employment. The standard paid leave entitlement is between 15 and 20 days.

Each parent has the right to 120 days (per parent), paid parental leave for each child, which the employee must take before the child reaches eight years old. The leave can be taken fully or in two parts (per year) or part-time, where the duration of parental leave is doubled, but the compensation is halved.

Pregnant employees are entitled to 28 days of paid maternity leave before the due date, which can be 45 days under special circumstances, based on a medical assessment.

After the birth of a child, the employee is entitled to 70 days of paid maternity leave.

After 70 days, the mother can continue the maternity leave until the child is six months old (unpaid, although employers generally pay this as an additional benefit) or choose to share the maternity leave with the father.

There is no statutory paternity leave in Croatia.

In special circumstances, the father can take over the mother’s mandatory (70 days) leave if the mother cannot care for the child. After the 70th day after birth, the mother can transfer the remainder of the leave to the father.

The employer can grant unpaid leave. The employer has the option to decide whether to pay for social benefits or not during the employee's absence.

In the event of termination, an employee with two or more years of service with a company is entitled to severance pay. The minimum severance pay is one-third of the company's regular monthly payments per year.

The notice period for a temporary or permanent employee is dependent on the employee’s length of service:

• Two weeks for employees with a year of employment
• Six weeks for employees with two years of employment
• Eight weeks for employees with five years of employment
• Ten weeks for employees with ten years of employment
• Twelve weeks for employees with over 20 years of employment

Severance pay is dependent on the length of employment. Severance pay for employees with two or more years of employment is paid at 33% of the employee’s regular monthly pay rate for each year of service, at a maximum of six months of the employee’s salary.

Croatia’s immigration system provides several options for employers of foreign nationals. Croatia is a member of the European Union. Requirements, processing times, employment eligibility, and benefits for accompanying family members vary by permit type.

Business visitors require a Short-Term Visa (Type C Visa) to enter Croatia unless they are visa-exempt based on their nationality or hold a suitable alternate visa. Visas are issued for single, dual, or multiple entries at the discretion of the consular authorities. Business visitors must limit their stay to 90 days in any 180 days.

The main work authorization categories are the Work Registration Certificate, a registration process for short-term work permit-exempt activities, and the Stay and Work Permit, suitable for a broad range of work activities. The Stay and Work Permit is issued for up to one year initially and can be renewed.

Croatia also offers a one-year Digital Nomad temporary stay permit for foreign nationals seeking to work remotely from Croatia without local company sponsorship.

Employers can perform criminal background verification and ask for educational certificates. The remaining background verification depends on the employment requirement.