Overview

Capital
Zagreb
Currency
Kuna (HRK)
Date Format
dd.mm.yyyy (ce)

Taxes

Employer
Health - 15.00%
Unemployment - 1.70%
Contribution Against Injury at Work - 0.50%
Employee
15.00% - Generation Solidarity (Pillar 1)
5.00% - Individual Captial (Pillar 2)
24.00% - Up to 210,000
36.00% - Over 210,000

Minimum Wage

General
Minimum wage is 462.30EUR ($514.99) monthly

Working Hours

General
Fulltime employment is considered 40 hours weekly - however can be extended to 50, and if agreed to in a collective agreement up to 60. *Unequal working hours schedule: allows employers to alter schedule according to needs, this can be for between 1 month - 1 year.
Overtime
Employees generally cannot work more than 180 hours overtime annually (unless agred to in collective agreement in which case the maximum is 250 hours).

VAT

General
25% standard rate.

Payment

Payroll Frequency
Salaries are paid on monthly basis, no later than the 15th of the following month.

Mandatory Benefits

Pension Fund
Employees contribute 20% of their wages which is withheld by the employer, with contribution ceiling of 5,066EUR per month.
Social Security
Contributions consist of pension contributions at a rate of 20% from the gross salary, and a health and employment contribution at the rate of 17.2% from the gross salary.

Termination

Termination Process
Employers can terminate a fix term contract by giving the following reasons - business, personal or worker's’ misconduct. If it is an open ended agreement, employer can terminate the employee without a reason.
Advance Notice
The length of advance notice varies from company to company depending on the initial agreement between the employer and employee.
Severance Pay
Employees of the same company for more than 2 years are entitled to a severance pay calculated by the number of years employee has been employed in the company. The minimum amount is one third of the average monthly salary earned during the last three months prior to termination. The severance pay can be maximum of six months average monthly salary.