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The labor code of Croatia provides paid annual leave of at least 4 weeks to all employees. The employee is entitled to annual leave after they have worked for at least 6 months with the employer. Employees who work in harmful jobs, and minors, are entitled to 5 weeks' leave. The law does not allow compensation in lieu of annual leave.

During annual leave, employees are entitled to salary compensation in the amount determined by the collective agreement, labor regulations, or employment contract, and at least in the amount of their average monthly salary in the previous 3 months. In the event of termination of employment, employers must pay compensation to the employee who has not used their annual leave in lieu of taking it.

The labor code of Croatia provides employees with 7 working days of employee-paid leave in case of serious illness. Additionally, employees are entitled to wage replacement benefits through the Medical Committee of the Croatian Health Insurance Fund (Hrvatskog Zavoda za Zdravstveno Osiguranjeor HZZO) for the first 42 days of sickness, typically paid by the employer. From the 43rd day onward, the employer continues to pay out the benefits but is reimbursed by the HZZO.

In Croatia, an employed mother is entitled to maternity leave during pregnancy, childbirth, and care of a newborn child until the child reaches the age of 6 months. The employee is entitled to 100% of their salary compensation for the duration of maternity leave, which is paid from the funds of the Croatian Health Institute.

Croatian law dictates that the mother must use maternity leave 28 days before the expected date of delivery and use it continuously until 70 days after birth (compulsory maternity leave). An employed mother may start taking maternity leave 45 days before the day of the expected birth.

Per the labor laws of Croatia, after the expiration of the compulsory maternity leave period, the remaining maternity leave, which lasts until the child reaches the age of 6 months, may be transferred to the child's father.

An employed father is also entitled to parental leave separate from maternal leave. An employed father can use paternity leave in the period from the day of the child's birth up to the sixth month of the child's life. Effective March 1, 2025, fathers can take 20 working days for one child and 30 working days in the case of multiple births (i.e., twins, triplets, etc.). This leave is also available in case of a stillbirth, provided they take it from the day after the stillbirth. The compensation for paternity leave is 100% of the employee's salary.

Minimum Wage

From January 1, 2025, to December 31, 2025, the minimum wage in Croatia is set at EUR 970 (euros) per month. From January 1, 2026, the minimum wage will increase to EUR 1,050 per month.

Salary must be paid monthly or as per the terms set in an individual or collective agreement, and no later than the 15th day of the current month for the previous month.

Overtime, Holiday & Vacation Pay

The labor law of Croatia limits overtime for cases of emergency or any extraordinary reasons for work increase. The total duration of overtime must not exceed 10 hours in a week and 180 hours in a year (250 hours in a year if it has been provided by the collective agreement).

For difficult working conditions, overtime, and night work, and for work on Sundays, holidays, and non-working days determined by a special law, the employee has the right to an increased salary. The amount is determined by the collective agreement, labor regulations, or labor contract. Work performed on Sunday must be paid at a minimum of 50% wages for each hour of work.

Notice Period

The Croatian Labor Code provides that, in the case of dismissal, the employer must give prior notice to the employee in writing.

The duration of the notice period depends on how long the employee has been working for the same employer:

• 2 weeks' notice: employed for less than 1 year
• 1 month: employed for 1 year
• 1.5 half months: employed for 2 years
• 2 months: employed for 5 years
• 2.5 months: employed for 10 years
• 3 months: employed for 20 years

An employee whose employment contract is terminated due to employee misconduct is entitled to a notice period in the amount of half of the notice periods listed above.

Severance Benefits

An employee who is dismissed by the employer after 2 years of uninterrupted work (unless dismissed due to misconduct) is entitled to severance pay in the amount determined by the length of their previous continuous service with that employer.

The severance pay may not be less than one-third of the average monthly salary earned by the employee in the 3 months before the termination of the employment contract, multiplied by each completed year of service with the same employer.

Pension

Under Pillar I of Croatia's pension scheme (there are 3 in total), the right to an old-age pension for men is acquired when they reach the age of 65 and have 15 years of pensionable service. At least 15 years of pensionable service is also required for women, but, as of 2026, women qualify for an old-age pension at the age of 64 years.

The pension amount is calculated by multiplying the personal value points of the employee by the pension factor and the actual value of the benefit. The personal value points are calculated by dividing the insured worker's average annual salary earned during their working life by the average annual salary in Croatia. The pension factor for old-age and early old-age pensions is 1.0. The actual value of the benefit is determined by the Administrative Council of the Croatian Pension Institute biannually and is correlated to the consumer price index in Croatia.

Dependents/Survivors Benefits

In Croatia, the family members of a deceased insured person are entitled to a survivors pension if the insured person:

• Had completed at least 5 years of insurance contributions
• Had met the length of pensionable service requirements for a disability pension
• Was the beneficiary of an old-age, early old-age or disability pension or
• Was the beneficiary of the right to professional rehabilitation benefits

A survivors pension after the death of the active insured person is calculated as a percentage of the invalidity pension to which the deceased would have been entitled, according to the number of family members (effective January 2023):

• For 1 beneficiary: 77% of the pension
• For 2 beneficiaries: 88% of the pension
• For 3 beneficiaries: 100% of the pension
• For 4 beneficiaries: 110% of the pension

Invalidity Benefits

In Croatia, an insured person is entitled to a disability pension if they have a partial or complete loss of working capacity and meet the necessary age requirements.

If the insured person suffers a partial or total lack of working capacity before 65 years of age as a consequence of illness (non-occupational) or injury outside of work, they may receive an invalidity pension if the qualifying period covers at least one-third of the working life.

If the insured person's disability is due to a workplace injury or an occupational disease, they acquire the right to a disability pension regardless of the length of pensionable service.

Personal Income Tax

The tax year in Croatia runs from January 1 through December 31. The tax system embeds municipal taxes within the income tax rate. The rate is determined by the Municipal region in which the taxpayer lives as follows:

• Municipalities: Lower rate: 15% to 20% / Higher rate: 25% to 30%
• Cities: Lower rate: 15% to 21% / Higher rate: 25% to 31%
• Large cities and county seats: Lower rate: 15% to 22% / Higher rate: 25% to 32%
• City of Zagreb: Lower rate: 15% to 23% / Higher rate: 25% to 33%

The lower tax rates apply to income up to the amount of EUR 60,000 , and the higher tax rates apply to income above that. Individuals are allowed a personal deduction that is adjusted based on the number of family members.

Visas

Croatia is a member of the European Union, and of the Schengen Area, which means that third-country nationals require a Schengen visa to enter Croatia. There are the following types of visas issued:

• Transit visa (Type A) - issued for transit through the international airport, and is valid for 24 hours
• Short term visa (Type C) - issued for foreign national's stay in the Schengen Area for up to 90 days within a 180-day period, used for tourism, business, or visiting family and friends. It can be issued for single, double, or multiple entries
• National visa (Type D) - issued for stays exceeding 90 days in Croatia. It's typically issued for work, study, or family reunification purposes. The validity cannot exceed 5 years

Work Permits

Employers may hire non-EU/EEA/Swiss nationals (third-country nationals) only if they have obtained a stay and work permit or a work registration certificate. The employee may work only for the employer, position, and conditions listed in the permit. Individuals from the EU, EEA, or Switzerland do not require a permit and may work freely in Croatia under EU free-movement rules.

Before hiring a third-country national, an employer must meet certain obligations, including showing minimum revenue, complying with tax obligations, having no criminal violations, and having employed at least one Croatian/EEA/Swiss national full-time for the past 12 months. The third-country national's salary must not be lower than the salary paid to comparable workers in Croatia in the same, similar, or related occupations, and the employment contract must not contain discriminatory provisions that place the worker at a disadvantage relative to other workers in Croatia.

Under the 2025 amendment, there is a new workforce ratio requirement where at least 16% of the workforce must be Croatian/EEA/Swiss nationals relative to third-country nationals. For shortage occupations, the threshold is 8%.

Permits can now last up to 3 years (aligned with the employment contract). Employees can change employers after 12 months in the same occupation with notification and HZZ approval. If employment ends, employees now have a 60-day grace period to find a new employer. Employers must provide a financial guarantee (promissory note) equal to 1 average monthly gross salary if the employee requires a visa.

In Croatia, the minimum age for working is 15 years. Persons between the age of 15 and 18 years who receive compulsory elementary education may not be employed. A minor under the age of 15 years can work in some jobs with the authorization from a legal guardian.

Individuals below the age of 18 years cannot be employed in jobs that endanger their life, health, maturity, or development. The minor employees are not allowed to work for more than 8 hours in a day. The employment of minors in night work at an industrial job (between 7:00 PM and 7:00 AM) is not permitted except for temporary, special conditions. For those not working in the industry, work between 8:00 PM and 6:00 AM is prohibited. A minor must never be employed in a job that requires working hours to be between 12:00 AM and 4:00 AM.