Insights
How to Hire Employees in Croatia
Insights · By Chen ChunJie · Published 8 November 2026
Croatia joined the euro and Schengen in 2023 and has a growing tech and services sector. A foreign company can hire through its own Croatian company, through an employer of record, or by engaging independent professionals for defined projects. This guide covers the routes, contracts, pay, leave and how employment ends.
Last reviewed in November 2026 against the Labour Act, the 2026 minimum wage decree, the Contributions Act and Tax Administration guidance. Rates change, so we confirm them for each engagement.
Three ways to hire
| Route | Who employs the person | Best for |
|---|---|---|
| Your own Croatian company | Your d.o.o. or branch | Long-term teams |
| Employer of record | A registered Croatian employer such as our Local Team | First hires before your entity is ready |
| Independent professional | No employer; a contract for work or services | Projects by sole traders or freelancers |
Contracts and probation
The contract must be written, or the employer must confirm it in writing before work starts, covering 12 mandatory items. Fixed-term contracts are limited to three years in total. Probation can last up to six months.
No Croatian company yet? Our Local Team can be the legal employer while you manage the work. See Employer of Record in Croatia.
Pay and payroll
The minimum wage is EUR 1,050 a month gross in 2026. The employer pays 16.5% health insurance, withholds the employee’s 20% pension contribution and income tax at the municipal rate, and files a JOPPD with each payment. See our Croatia payroll and tax guide.
Working time and leave
| Rule | What applies |
|---|---|
| Hours | 40 a week |
| Overtime | Increased pay set by agreement or contract; capped at 180 hours a year |
| Annual leave | At least four weeks |
| Public holidays | 14 a year |
Ending employment
Notice runs from two weeks to three months depending on service, with extra notice for older long-serving employees. After two years’ service, severance is at least one-third of average monthly pay per year, capped at six months unless law or agreement provides more.
Hiring non-EU nationals
Non-EU nationals need a stay and work permit, usually after a labour market test. See Expat Employment in Croatia.
FAQ: hiring employees in Croatia
Must the contract be written?
Yes, or confirmed in writing before work starts.
What is the minimum wage?
EUR 1,050 a month gross in 2026.
How long can probation last?
Up to six months.
Hiring your first employee in Croatia?
Our Local Team employs the person, runs payroll with contributions, income tax and JOPPD, and handles the paperwork, while you manage the day-to-day work.
Related
How we employ your team in Croatia.
Contracts, leave, termination and more.