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Employment Contracts

Written employment contracts are mandatory in Croatia and must be in the Croatian language with wages stated in Euro or Kuna. We can support both definite (fixed-term) and indefinite employment contracts where there is a justifiable reason as permitted by law, as well as full-time and part-time arrangements, all in compliance with the local labour legislation and relevant EU regulations.

Background checks

We can conduct legally compliant background checks in Croatia where the law permits. Any collection or use of personal data must follow the Labor Act and GDPR regulations, with employee consent where applicable.

Equipment provisioning

We make employee onboarding effortless by managing all equipment provisioning. We also have ties with multiple co-working spaces to boost employee productivity.

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Salary structuring

We can structure salaries in Croatia in line with market trends and factor in statutory deductions for social security, health insurance, and income tax, as well as any applicable allowances or bonuses as agreed.

Taxes

Croatia follows a progressive personal income tax system, with rates that vary based on the location and the salary of the employee.

Salary

Salaries are paid monthly in Euro or HRK as agreed with the employee in the employment contract, usually at the end of the month and no later than the 15th of the next month. As the legal employer, we will generate detailed payslips with gross pay, deductions, contributions, and net pay, all in line with the local law.

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Public health insurance

Health insurance is mandatory and funded through employer contributions of 16.5%. Coverage includes medical care, hospitalization, and prescriptions under Croatia’s Health Insurance Fund.

Pension contributions

There are two elements of Croatian pension schemes. Employees contribute 20% of gross salary toward pensions. 15% of the employee’s gross salary is paid each month to the general solidarity fund and 5% to the individual capital fund. Employers are responsible for ensuring timely contributions are made.

Holiday entitlement and pay

During annual leave (of a minimum of 20 days per year), after six months of continuous employment.

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Employment Laws

Employment in Croatia is governed by the Constitution, the Labor Act, and relevant EU regulations. Laws cover employment contracts, working hours (40 per week, eight hours a day over five days per week), overtime limits, rest periods, paid leave, and workplace protections, including discrimination laws.

Worker classification & employment contract

Written employment contracts in Croatian are mandatory and must specify job details, salary in Euro or HRK, working hours, leave entitlements, and termination terms. Both definite and indefinite (with legal justification) term employment contracts are recognized, alongside part-time and full-time arrangements.

Data protection

Employers must comply with GDPR and the Labor Act on employee data use and data protection.

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Annual leaves

Employees are entitled to at least four weeks of paid annual leave (20 days for employees working 5 days per week). Employees qualify after six months of continuous service, and unused leave can be carried over until June 30 of the following year.

Sick leave

Employees receive 42 days of sick leave annually at 70% pay. Extended leave is reimbursed through the Croatian Health Insurance Fund. Sick leave to care for family members is also permitted.

Maternity & Paternity Leaves

Female employees receive 98 days of maternity leave, with 28 days before birth. Parents are entitled to four months each of parental leave, with longer periods available for multiple births or children with disabilities.

leave policies

Notice periods

Notice depends on tenure and ranges from two weeks to three months. Additional considerations need to be given to the age of the employee at termination. For example, two weeks of notice is applicable to employees with service over one year of service, one month after the first year, one month and two weeks after two years, two months after five years, two months and two weeks after 10 years, and three months after 20 years. Employees over 50 receive an additional two weeks; those over 55 receive four weeks.

Probation rules

The probation period can last up to six months and must be relevant to the role being undertaken by the employee. If terminated during probation, employees must receive at least seven days’ notice.

Severance & final payouts

Employees with two or more years of service are entitled to severance pay equal to one-third of their average monthly salary per year of service. Final pay must include accrued salary, unused leave pay, and any contractual entitlements as contained in the employment contract.

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Payoneer Workforce Management has been a game-changer for us, completely transforming the way we manage our global team. Payoneer Workforce Management’s digital onboarding has made our international payments as easy as our domestic ones. Payroll management that used to take hours is now error-free and takes just a few minutes.

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Payoneer Workforce Management, has been a key partner in our international expansion. Their seamless onboarding process and compliance expertise have allowed us to focus on our core mission which is to accelerate the world’s transition from fossil fuels to solar energy.

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Payoneer Workforce Management made our team expansion possible, handling the complex onboarding and payroll processes across six different countries with ease. Their local expertise ensured our compliance, letting us focus on what we do best—serving our clients.

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Payoneer Workforce Management simplified our contractor engagement from start to finish. Their platform covered onboarding, payments, and compliance, making our expansion into new markets practically frictionless.

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Payoneer Workforce Management’s solution in Croatia enables businesses to hire employees without setting up a local entity. The service covers employment contracts, payroll, statutory contributions, and compliance with local labor laws while you manage the day-to-day work.

This service pricing starts at $199/month per employee. Contractor management starts at $19/month.

No. Payoneer Workforce Management acts as the legal employer, allowing us to hire and pay employees in Croatia without incorporating locally.

We manage statutory benefits such as public health insurance, pension contributions, paid public holidays, annual leave, sick leave, and maternity/parental leave, along with optional benefits based on your needs.

Yes. The Employer of Record model is informally recognized in Croatia, with the EOR becoming the official employer for compliance, payroll, and HR administration. 

What’s Payoneer Workforce Management’s typical onboarding timeline?

Onboarding timelines depend on document readiness and approvals, but we can typically prepare employment contracts, payroll, and statutory registrations within 3 to 5 business days.

Written employment contracts in Croatian are mandatory and must include job role, working hours, salary in Euro or HRK, leave entitlements, and termination terms in compliance with the Labor Act.

The information on this page reflects the details available at the time of publication. For the most up-to-date information, please consult a Payoneer Workforce Management representative or account executive. Skuad Pte Limited (a Payoneer group company) and its affiliates & subsidiaries shall provide EoR, AoR, and contractor management services.

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