GLOBAL EMPLOYER OF RECORD IN 190+ countries
Employer of Record in Croatia
Hire the talent you need in Croatia without establishing a local company before the business requires one. Acumen acts as your Employer of Record, helping you move ahead with key hires, grow the team gradually and keep market entry flexible.
GLOBAL EMPLOYER OF RECORD
Global Coverage
Acumen International delivers global employment solutions across 190+ countries.
Strategic markets
Hiring and compliance support across North America, Europe, and Asia-Pacific.
Established jurisdictions
Lawful employment and payroll in regulated, compliance-intensive countries.
Growth economies
Expanding into new regions? Hiring support across fast-moving economies.
Risky and remote locations
Compliant employment solutions in jurisdictions with limited infrastructure.
Employing in Croatia through an Employer of Record
With an Employer of Record, Acumen International is the legal employer of the people who work for your business in Croatia. Acumen signs the employment contract under the Labour Act, registers the employee for compulsory pension and health insurance, pays salary, contributions and income tax, and carries the employer’s legal obligations. Your business selects the person and directs the work. Where the right person has not yet been found, Acumen International can also run the search, from specialist recruitment to executive search, with background and education checks before the offer.
Situations where an Employer of Record serves a Croatian hire
- Contractor compliance. Full-time contractors working through their own sole-trader businesses move onto Croatian employment contracts, removing the status and permanent establishment questions a tax inspection would raise.
- One accountable provider. Contracts, payroll, permits and compliance sit with Acumen International instead of being split between several suppliers.
- No entity to set up or maintain. You employ in Croatia without registering a company, keeping statutory books or filing as a local employer.
- Market tests and short-term projects. A pilot, a market assessment or a fixed-term assignment is staffed without permanent infrastructure and scaled up or wound down as results come in.
- Bridge to your own entity. While your Croatian company is being registered, the first employees start with Acumen International and transfer once it can employ them.
- Fast team launch. Local hires and specialists moving to Croatia are onboarded with their permits and payroll handled together.
- Mergers and restructuring. Croatian staff stay employed without a break while the legal entities around them change.
- NGO staffing. International organisations and programmes employ project staff in Croatia under the Labour Act.
- Employer liability. Acumen International holds the local employer’s liability, so statutory obligations rest with the party the authorities hold responsible.
- Remote team expansion. Croatian members of a distributed team receive contracts, pay and social insurance that follow Croatian law.
Temporary work agencies in Croatia: the legal basis and its limits
Articles 44 to 52 of the Labour Act allow a temporary work agency to employ workers and assign them to a user undertaking, which directs their work. These limits apply:
- The agency must be registered with the ministry responsible for labour before assigning anyone.
- The assignment contract between the agency and the user must be in writing.
- Workers cannot be assigned to replace employees on strike, to fill jobs cut in a collective or business-reason redundancy in the previous six months, or for certain hazardous work.
- Assigned workers’ pay and working conditions cannot be less favourable than those of comparable direct employees of the user, unless a collective agreement provides otherwise.
- An assignment to the same work is capped at three uninterrupted years, with gaps of under two months not breaking the period, except for replacing an absent employee or where a collective agreement allows.
- The user is treated as the employer for health and safety at work.
- Workers cannot be charged a fee for the assignment or for later signing a contract with the user.
The three-year cap shapes long-term roles, so Acumen International agrees with you at the start how each position continues beyond it.
What Acumen International handles in Croatia, from recruitment to exit
| Stage | What it involves in Croatia |
|---|---|
| Recruitment and checks | Finding the candidate where needed, with background and education checks before the offer |
| Permits | Residence and work permits for third-country nationals, the labour market test where it applies, and family members who will move too |
| Contract and onboarding | A written employment contract, the assignment contract with your business and registration for pension and health insurance |
| Pay | Monthly payroll in euros, with contributions and income tax at the rates of the employee’s place of residence, reported on the JOPPD form |
| Time and absence | Working-time records within the 40-hour week and overtime caps, annual leave and sick leave |
| Changes and renewals | Contract annexes, assignment dates against the three-year cap and permit renewals |
| Exit | Notice, severance where due, final settlement and deregistration |
In practice, this replaces the separate payroll provider, labour lawyer, immigration adviser and benefits broker a business would otherwise need in Croatia.
Minimum wage and pay rules in Croatia
From 1 January 2026, the gross minimum wage is €1,050 a month, an increase of €80 on 2025.
Salaries are agreed as a gross monthly amount in euros. Work on Sundays is paid at least 50% above the regular rate, while overtime pay is set by the collective agreement, employment contract or employer’s rules rather than a statutory percentage.
Employment contracts and working time in Croatia
| Rule | What it means for you |
|---|---|
| A fixed-term contract needs an objective reason, and successive fixed-term contracts are limited to three years and three contracts, with exceptions | Long-term roles move to open-ended contracts |
| After six months on a fixed-term contract, an employee can ask for an open-ended one, and a refusal must be explained in writing | Requests get a documented answer |
| Probation must be agreed in the contract, cannot exceed six months and carries at least seven days’ notice | Fit is tested within a set window |
| Full-time work cannot exceed 40 hours a week | Contracted hours sit within a firm ceiling |
| Overtime is capped at 10 hours a week and 180 hours a year, or 250 under a collective agreement, and is ordered in writing | Extra hours are documented and limited |
| Annual leave is at least four weeks a year, and five for minors and those in harmful working conditions | Leave is planned in whole weeks |
Ending employment in Croatia
Notice depends on length of service, starting at two weeks in the first year and one month after a year, and rising with longer service. Employees aged 50 or over with at least 20 years’ service receive two extra weeks, and those aged 55 or over an extra month.
An employee with at least two years’ service dismissed for business reasons or incapacity is entitled to severance of at least one third of the average monthly salary of the last three months for each year of service, capped at six average monthly salaries unless other rules provide more.
Where an employer expects to dismiss at least 20 employees within 90 days, at least five of them for business reasons, it must consult the works council first, and dismissals made without that consultation are void. Pregnant employees and those on maternity leave are protected against dismissal.
Croatian employment risks and how Acumen International covers them
| Risk | Where it arises | How Acumen International covers it |
|---|---|---|
| Worker misclassification | A sole trader working full time under your direction can be treated as an employee, with contributions and tax due for past periods | Your Croatian team is employed under the Labour Act |
| IP ownership | Rights in work created in the job sit with the Croatian employer unless the contracts pass them on | Contracts confirm the rights and transfer them onward to your business |
| Client liability for pay and contributions | An assignment that breaks the Labour Act limits, such as filling recently redundant jobs or exceeding three years, exposes the user | Each assignment is checked against the limits before it starts |
| Equal pay for assigned staff | Assigned workers cannot be paid less than comparable direct employees of the user | Pay is set against your comparable roles before the offer |
| Permanent establishment | An employee who concludes contracts for your company can create a taxable presence in Croatia | Signing authority stays with your company and is written into the role |
| Exit cost | Notice that grows with service and age, and severance of up to six monthly salaries | Notice and severance are calculated before any decision |
| Sponsor obligations | Since March 2025, employers of third-country nationals need minimum turnover, a qualifying local workforce and a financial guarantee per worker, with fines of €5,000 to €20,000 for illegal employment | Acumen International is the employer named on the permit |
| Pay transparency | The EU Pay Transparency Directive was due to be transposed by 7 June 2026 | Pay structures are documented on objective criteria |
Residence and work permits for non-EU employees in Croatia
EEA and Swiss nationals can work in Croatia without a permit. Third-country nationals need a residence and work permit, or a work registration certificate for some short assignments, issued by the Ministry of the Interior.
- Under the Foreigners Act amendments in force since 15 March 2025, a residence and work permit can run for up to three years, an EU Blue Card for up to four years and a seasonal permit for up to nine months.
- An EU Blue Card requires a salary of at least 1.5 times Croatia’s average gross salary for the previous year, reduced to 80% of that level for applicants with under three years’ professional experience.
- Where the Croatian Employment Service carries out a labour market test, the employer needs at least €10,000 in revenue over the previous six months and at least one Croatian, EEA or Swiss employee on a full-time open-ended contract for a year.
- The employer provides a promissory note worth one average monthly gross salary for each foreign worker who needs a visa.
- After six months with the first employer, the worker can change employer without a new permit.
- From 4 June 2027, a permit holder will need an A1.1 Croatian language certificate after one year of residence to renew.
What Acumen International contributes
- A qualifying sponsor in place of your company. The revenue, local workforce and guarantee conditions are tests a foreign business new to Croatia cannot pass. Acumen International meets them as the employer and sponsors your hire, so work authorisation does not wait for your own Croatian track record.
- An offer built to the right permit. Salary, job title and contract terms are set against the threshold of the route that fits the person, so a qualifying specialist goes onto an EU Blue Card valid for up to four years rather than a shorter general permit.
- Status kept valid throughout the employment. Role changes, renewals and, from 2027, the language requirement are handled by the sponsor, so the person’s right to live and work in Croatia stays secure for as long as they work for you.
Family members
Family members granted temporary residence for family reunification with an EU Blue Card holder, or with a Croatian national, can work without a separate permit.
Employer cost and income tax in Croatia
| Contribution (2026) | Employer | Employee |
|---|---|---|
| Pension insurance, first pillar | — | 15% |
| Pension insurance, second pillar | — | 5% |
| Health insurance | 16.5% | — |
For gross salaries up to €1,300 a month, the employee’s pension contribution base is reduced, by €300 up to €700 and on a sliding scale above that. Pension contributions are capped at a monthly base of €11,958, while the employer’s health contribution applies to the full gross salary.
Income tax
Income tax is charged at two rates set by the employee’s local authority: a lower rate of 15% to 23% on annual income up to €60,000 and a higher rate of 25% to 33% above it, with the upper limits highest in Zagreb. Where a local authority sets no rates, 20% and 30% apply.
The Global Payroll Calculator applies the rates of the employee’s place of residence and the low-pay reduction, so an offer in Split can be compared with the same offer in Zagreb.
Sectors employing through an Employer of Record in Croatia
- Software and IT services companies employ developers, testers and product teams in Zagreb, Split, Osijek and Rijeka.
- Tourism and hospitality groups on the Adriatic coast employ hotel management, revenue and guest service staff, alongside seasonal teams.
- Shipbuilding, ports and logistics businesses employ engineers and operations staff.
- Energy companies developing solar, wind and LNG projects need engineers and project managers.
- Pharmaceutical and food manufacturers employ quality, regulatory and production specialists.
Croatian hiring cases and how they are handled
| Case | What Croatian rules add | How it is handled |
|---|---|---|
| A developer has invoiced you through a sole-trader business for years | Full-time work under your direction points to employment | The developer moves onto a Croatian employment contract with Acumen International |
| A hotel group needs extra staff for the summer | Seasonal permits for third-country nationals run up to nine months, and fixed-term contracts need an objective reason | Seasonal hires are planned around the permit calendar and the contract grounds |
| An engineer is offered the same role in Zagreb or Split | The local authority sets the income tax rates, with Zagreb’s ceilings the highest | Net pay is compared for both places before the offer |
| A role is made redundant after eight years | Severance is at least eight thirds of the average monthly salary, about 2.7 salaries, within the six-salary cap, on top of notice | Notice and severance are budgeted before the decision |
Benefits, payroll and leave in Croatia
Croatian packages for skilled roles often add a Christmas or holiday bonus, meal and transport allowances and supplementary health insurance, many of which can be paid tax-free up to set limits.
Payroll obligations
| When | What happens |
|---|---|
| Before the first working day | The employee is registered for pension and health insurance |
| On each pay day | The JOPPD form is filed with the Tax Administration, and contributions and income tax are paid |
| On termination | The final settlement is paid and the employee is deregistered |
Leave entitlements
| Leave | Entitlement | Paid by |
|---|---|---|
| Annual leave | At least 4 weeks, or 5 for minors and harmful working conditions, after six months’ employment | Employer |
| Public holidays | National and religious holidays set by law | Employer |
| Sick leave | At least 70% of the salary base | Employer for the first 42 days, then the Croatian Health Insurance Fund |
| Maternity and parental leave | Statutory leave around the birth, with protection against dismissal | Croatian Health Insurance Fund |
Sources
- Labour Act, English text, Ministry of Labour, Pension System, Family and Social Policy
- Amendments to the Labour Act to prevent consecutive fixed-term contracts, Government of the Republic of Croatia
- Stay and work permits and visas
- Amendments to the Croatian Employment Act, CMS
- Labour law in Croatia, CMS expert guide
- Act on Amendments to the Foreigners Act NN 40/2025, JMS
- Tax Alert April 2025: Foreigners Act changes
- Croatia: taxes on personal income
- Croatia: other taxes
- Croatia’s minimum wage for 2026
Got questions?
We’ve got answers
Have questions about hiring globally? You’re not alone. Below you’ll find answers to the most common questions from teams expanding into new markets — from compliance and onboarding timelines to payroll and local benefits.
If you don’t see what you’re looking for, our team of in-country experts is always ready to help you navigate the details.
Can we keep an employee who relocates to Croatia if we do not have an entity there?
Often, yes, where the role and the employee’s right to work can be supported. Acumen can become the Employer of Record in Croatia, allowing the person to remain part of your business under a local employment arrangement rather than forcing the company to incorporate just to retain them.
Can we move an existing contractor or employee onto an Employer of Record in Croatia?
Yes, where the arrangement is suitable. Acumen can employ the individual through its Employer of Record structure in Croatia, giving the worker a formal local employment relationship without requiring your company to create its own employing entity. This is an employment transition, not a contractor reclassification service.
What happens if we later open our own entity in Croatia?
The Employer of Record arrangement can act as a bridge rather than a permanent commitment. When your Croatia entity is ready and direct employment becomes the preferred model, Acumen can coordinate the employee transition subject to the local requirements that apply at that point.