Croatia Employment Guide

Croatia Employment Guide

Croatia is in Southeast Europe, bordering the Adriatic Sea, with significant geographical advantages and tourism resources. It has ~3.8 million people; its economy focuses on tourism, shipbuilding, agriculture and services, while IT and manufacturing are also developing gradually. The capital Zagreb is the political and economic center. As an EU member state, Croatia adheres to the EU’s labor and employment standards. Labor laws require labor contracts to be signed in writing, with a standard 40-hour workweek. Employers must guarantee minimum wages and employees’ social security. Dismissals and layoffs must comply with legal procedures and provide corresponding notice periods or compensation.

Check recruitment costs

Currency

Euro (EUR)

Capital

Zagreb

Official language

Croatian

Salary Cycle

Monthly

Our Employment Guide in Croatia

Browse the following tags to learn all about hiring employees in Croatia

Maternity Leave in Croatia: A Comprehensive Guide

In Croatia, pregnant employees are entitled to 98 days of fully paid maternity leave. The leave structure requires 28 days to be taken before childbirth and 70 days following delivery. Compensation during this period equals 100% of the employee's average salary, calculated from the previous six months, with payments administered by the Croatian Health Insurance Fund (HZZO).

Employees have the option to extend their leave using parental leave benefits, providing additional flexibility for new parents.

Paternity Leave: Current Legal Framework

At present, Croatian legislation does not provide for statutory paternity leave. Employers may, however, offer discretionary leave arrangements as part of their company policies.

Parental Leave Entitlements and Compensation

Croatian parents benefit from substantial parental leave provisions. For the first and second child, employees are entitled to 8 months of leave, while parents of twins or third and subsequent children receive 30 months. Both parents can share this entitlement, with each taking 4 months (for first/second child) or 15 months (for twins/third+ children). If only one parent utilizes the leave, the duration reduces to 6 months or 30 months respectively.

Compensation structure includes full salary coverage (100% of average earnings) for the initial 6 months, subject to a monthly cap of 5,654.20 Croatian Kuna. The remaining leave period provides 70% of average salary. All parental leave payments are managed through HZZO.

Unlike some European counterparts, Croatian parental leave cannot be extended beyond the statutory periods.

Sick Leave Provisions and Payment Structure

Employees qualify for up to 42 days of paid sick leave annually, with long-term sickness benefits available thereafter. The payment distribution follows this pattern:

PeriodCompensation RateResponsible Party
First 42 daysMinimum 70% of base salaryEmployer
After 42 daysIncome replacement benefitsHZZO (reimbursed to employer)

International Comparison: How Croatia Measures Up

When benchmarked against other EU members, Croatia's maternity leave provisions align closely with regional standards. However, the absence of statutory paternity leave places Croatia behind countries like Sweden and Germany, which offer more balanced parental leave systems. Companies like SailGlobal often supplement these statutory benefits with enhanced packages to attract international talent.

Practical Considerations for HR Professionals

Managing leave entitlements in Croatia requires careful attention to documentation and compliance. Employers should maintain detailed records of all leave periods and coordinate effectively with HZZO for reimbursement procedures. Implementing clear internal policies helps prevent disputes and ensures smooth operations.

Hire easily in Croatia

Compare employee hiring costs across over 100 countries worldwide, helping you accurately calculate labor costs. Try it now

Cost Calculator

Please select the country/region you wish to recruit from, and the calculation can be done with just a few clicks.