With stunning beaches on the Adriatic Sea, the cinematic charm of Dubrovnik’s Old Town (well-known to Game of Thrones fans as King’s Landing), and a central location in Europe, Croatia is a cultural marvel that offers modern benefits for both homegrown and digital nomad remote workers — ideal for companies looking to expand their global remote teams.
Key takeaways:
- Educated, English-speaking workers are in ready supply in Croatia and eager to include remote jobs in their job search.
- Companies hiring in Croatia must understand the country’s laws governing contracts, leave, etc.
- Croatia’s popular digital nomad visa makes the country a hot spot for contractors and freelancers seeking remote work opportunities.
Advantages of Hiring in Croatia
In 2021, Croatia’s government embarked on a six-year plan to increase broadband access in the country. As a result, internet connectivity is high throughout the country, with 89% of households online and average connection speeds of up to 70 Mbps.
Here’s a quick overview of Croatia:
- Languages: Croatian, Serbian, Bosnian
- Currency: Euro (EUR)
- Capital City: Zagreb
- Population: 3.9 million
- Cost of Living Rank: 60th
Croatia is Home to Highly Educated, English-Speaking Workers
English is taught from an early age in Croatian schools, and the country ranks 11th worldwide on the English Proficiency Index, with the capital, Zagreb, ranking third for cities with English proficiency.
About 70% of Croatians are estimated to speak English and many also speak other languages, such as German and Italian.
Education is free in Croatia, and many citizens pursue higher learning at colleges and universities. Twenty-four percent of the population is considered highly educated.
Common job sectors for remote workers in Croatia include:
- Software Development
- Web Design and Development
- Backend Engineer
- Digital Marketing Content Creation
- Account Manager
- Customer Support
Employment Laws: Hiring Compliantly in Croatia
Employment Contracts
In Croatia, there are two primary types of contracts:
- Worker’s contract (Ugovor o Radu): This is the standard, open-ended contract between an employer and a worker, and it covers job description, salary, paid leave, etc.
- Service contract (Ugovor o Djelu): Equivalent to a contractor agreement, this type of contract is used by employers hiring someone temporarily to complete a specific task or service.
All contracts must include a scope of work, the location of where the work must be performed, compensation, and other relevant details.
Working Hours & Pay
The standard work week for full-time employees in Croatia is eight hours per day, 40 hours per week.
Employers must obtain written consent from employees when requesting them to work overtime, and overtime pay must be at least 150% of the employee’s regular compensation. Overtime can’t exceed 10 hours per week or 180 per year per employee by law.
In 2024, the minimum monthly wage in Croatia is EUR 840, and will increase to EUR 970 in 2025.
Probation Periods
In Croatia, probationary periods depend on the contract, but can’t exceed six months. The minimum notice period for employers or employees wishing to terminate the contract during this time is seven days.
Employer Taxes
Employers must contribute 16.5% of the employee’s gross pay towards the national healthcare system and it’s not capped.
Termination Process & Severance Pay
Employers must provide a justified reason to terminate an employee, including employee misconduct, mutual agreement, business reasons, or if the employee is incapable of performing their job duties.
The minimum required notice periods are calculated by the employee’s length of service.
- Less than 1 year: 2 weeks’ notice
- 1 year: 4 weeks’ notice
- 2 years: 6 weeks’ notice
- 5 years: 8 weeks’ notice
- 10 years: 10 weeks’ notice
- 20 or more years: 12 weeks’ notice
An employee must have worked for a company for at least two years to be eligible for severance pay. The amount due is one third of the employee’s average monthly salary multiplied by the number of years of continuous service, capped at the equivalent of six months’ pay.
Paid Leave Laws in Croatia
Vacation and Holiday
Croatian employees receive 20 days of paid vacation per year, plus several paid national public holidays, including:
- New Year’s Day
- Easter Monday
- Statehood Day
- Christmas
- St. Stephen’s Day
Sick Leave
Employees who have contributed to social security for at least nine months are eligible for sick leave, which their employer pays at 70% of the employee’s regular wages for up to 42 days.
If the employee is still too sick to return to work, the employer will continue to pay them sick leave and be reimbursed by the Croatian Health Insurance Fund.
Maternity Leave
Croatian mothers receive fully paid maternity leave and must take at least 28 days before their expected due date and 70 days after.
After that, female employees are entitled to additional maternity leave until the child is 6 months old. During that period, the mother can also return to work and transfer the remaining leave to the child’s father.
Employers cannot end contracts during an employee’s pregnancy or maternity leave.
Paternity Leave
Fathers can receive up to 10 fully paid days of leave for one child and up to 15 days for the birth of multiples.
Why Digital Nomads Love Croatia
Croatia is an ideal spot for digital nomads. With a low cost of living, pleasant Mediterranean climate, and modern cities, it’s a popular base for remote workers, including independent contractors.
Croatia offers a digital nomad visa, which permits non-EU/EEA/Swiss citizens to live in Croatia for up to one year while working for a company based outside the country. Close family members or common-law partners can also accompany the visa holder.
Many nomads are based in bustling Zagreb, picturesque Dubrovnik, or the charming coastal city of Split. However, with widely accessible internet throughout Croatia, any spot in the centrally located country is ideal for remote employment.
How to Pay Remote Workers in Croatia
Companies paying employees in Croatia have various options, including bank transfers, cryptocurrency, and services like Wise or PayPal. Still, there are challenges associated with remote pay, including:
- Potential currency exchange issues resulting in over or underpayment
- Errors associated with global payroll processing
- Incorrect employee classification based on Croatian laws
A fully compliant way to pay Croatian employees is to partner with an Employer of Record (EOR).
Hire in Croatia with RemoFirst
RemoFirst is an EOR that enables companies to hire in over 180 countries, including Croatia.
An EOR acts as the legal employer and handles tasks like onboarding, payroll, contracts, and compliance with local labor laws.
Ready to hire in Croatia? Book a demo with RemoFirst to see how we can assist you in streamlining employee administration and ensuring legal compliance for your Croatian employees.
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