Hire your remote team in Croatia

Rivermate is a global employment solutions company that provides Employer of Record services in Croatia.

As an employer of record, we help you hire employees and run payroll services in Croatia, allowing you to avoid the necessity of first establishing a branch office or subsidiary in Croatia.

It is not necessary to establish an entity in order to hire an employee. We can hire your employee in any country with a few mouse clicks. Using our Employer of Record solution, you can have full compliance, benefits, and automated payments.

If you wish to hire a remote team in Croatia or individually hire remote employees in Croatia, Rivermate’s global employer of record services will make sure that the process will be as seamless as possible for you.

Send us a message so we can talk about how Rivermate’s Employer of Record Croatia services can best help your company!

The cost of living in Croatia is $896, which is 1.04 times less than the world average. The cost of living in Croatia was 78th out of 197 countries, and it was the 40th best country to live in.

After taxes, the average salary in Croatia is $943, which is enough to cover living expenses for 1.1 months.

Croatian's industry is a big part of the country's economy. It has a long history based on farming, forestry, and mining that goes back to the 19th century. During that time, many industries grew, including the wood industry, the food industry, the production of potash, shipbuilding, the production of leather and shoes, the textile industry, and others. The top industries where employers will want to hire remote employees from Croatia today are the food and beverage industry (which makes up about 24% of the total revenue of the manufacturing industry), the metal processing and machine industry, which includes vehicles (20%), the production of coke and refined petroleum (17%), the chemical, pharmaceutical, rubber, and plastics industry (11%), the production of wood, furniture, and paper (9%), the production of electrical equipment, electronics, and optics (9%), the textile, clothing, and shoe industry (5%), and construction (5%).

The LABOUR ACT (No. 758/95) says that if a recruiter wants to hire someone in Croatia, they have to think about the employment and labor laws. The country enforces its employment and labor laws to protect its workers in the following ways:

- The maximum number of hours an employee can work is 40 hours a week.

- If they work overtime, it must not be more than 180 hours per year.

- An employee should be permitted to take a break of 30 minutes for every 6 hours of work.

- An employer must deliver a reason justifiable by law to resign from any employment opportunity they are connected with in any of the following ways:

1. Providing a regular notice of termination

2. Providing an extraordinary notice of termination.

- Employees enjoy the right to obtain severance pay, except when there is an end to the contract signed due to any contractual reason.

- The minimum amount of severance pay should not be less than one-third of the average monthly salary obtained three months before the end of the employment contract.

- The maximum severance pay is equal to six average monthly salaries earned in three months before the resignation of the employment contract. The law, collective agreement, working regulations, or employment contract will generate more severance pay.

- The employer must provide a reasonable cause to throw a permanent or temporary employment contract without maintaining the notice period. In case he fails to do so, the employment relationship will be terminated.

- The minimum notice period is strictly prescribed and depends on the duration of the employment relationship with the same employer as follows:

1. for less than one year of employment - 2 weeks

2. for one year of employment- 1 month

3. for two years of employment- 1 month and 2 weeks

4. for five years of employment - 2 months

5. for ten years of employment- 2 months and 2 weeks

6. for twenty years of employment- 3 months

- If a worker has been in office for twenty years under the same employer, the employer can increase the notice period by two weeks. It also depends on the employee's age. He must be at least 50 to receive two weeks of increment. If he is 55 or more, the tenure of the notice period gets increased by one month.

- When the employment contract is suspended, if an employee does not abide by the obligations, the notice period can be decreased twice.

- Employers must clearly explain the termination notice. The employer also needs to inform an established body about the reason for termination. The council may roll out a standpoint of the decision within eight days. In case of emergency, it can be curtailed to five days.

Croatia's economy is growing very quickly. Since most of the GDP comes from the tertiary sector, Croatia has turned into a high-income, service-based economy. In 2020, the GDP fell by 8.4%.

The 2021 Index ranks Croatia as the 79th most free economy, with a score of 63.6. When the amount of European funds given to Croatia goes up after the current pandemic is gone, the country's economy should improve.

Based on how the country's economy is doing right now, poverty is expected to go down slowly over the next few years. But the effects of the pandemic crisis as a whole and the fact that poor people don't save much money could make the process take longer.

Croatia's economy has changed from one based on socialism to one based on capitalism. Since 1990, this change has made it harder for people to learn new skills and do research.

Croatia is still bouncing between the low and medium technological growth models. This is because the business sector hasn't put much money into research and innovation.

Economic liberalization, less competition on the market, membership in the European Union, and other benefits of socialism's collapse have not been able to bring about the economic progress that was expected during the transition to capitalism.

Croatian labor laws mandate a monthly minimum wage of 4,250 HRK or 562.80 EUR (2021), which equates to approximately $680 in US currency at the moment. Employees can bargain for a raise or bonus in their employment contract or through a collective bargaining agreement. However, a bonus for the thirteenth month is not customary in Croatia. Instead, employees frequently receive performance-based bonuses. Although it is not mandatory, many Croatian employers will give employees annual raises based on their service.