Croatia
Capital: Zagreb
Currency: - HRK
Croatia Labor Law and Employment Policy Overview
Employment Law Overview
- Key Laws and Regulations:
- Labor Act
- Social Security Act
- Health Insurance Act
- Legal Characteristics:
- Aims to protect employee rights and promote workplace fairness
- Sets standards for minimum wage, working hours, leave, and social security benefits
Employment Contract Requirements
- Contract Types:
- Indefinite contracts
- Fixed-term contracts
- Contract Provisions:
- Must include clauses on job description, remuneration, working hours, probation period, and termination conditions
- Language and Currency:
- Contracts must be written in Croatian
- Currency is the Croatian Kuna (HRK)
Working Time Regulations
- Standard Working Hours: 40 hours per week
- Rest Days and Breaks: Minimum of 24 hours of rest per week, and 12 hours of rest per day
Leave Policy
- Annual Leave: Minimum of 20 working days of paid annual leave per year
- Public Holidays: 14 statutory public holidays
- Special Leave:
- Sick leave: Up to 42 days per year, paid at 70% of regular salary
- Maternity leave: 98 days, including 28 days before and 70 days after childbirth
- Paternity leave: 10 working days, or 15 working days for multiple births
Employee Dismissal and Contract Termination
- Notice Period:
- Less than 1 year of service: 2 weeks
- 1 year of service: 1 month
- 2 years of service: 6 weeks
- 5 years of service: 8 weeks
- 10 years of service: 10 weeks
- 20 years of service: 12 weeks
- Severance Pay: Employees with 2 or more years of service receive 33% of monthly salary for each year of service, up to a maximum of 6 months' salary
- Protection Against Unfair Dismissal: Legal protections against unfair dismissal, including notice period, severance pay, and reinstatement rights
Taxation
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Personal Income Tax:
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Salary Range (HRK) Tax Rate 0 - 47,780.21 20% 47780.21 and above 30%
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Social Security Contributions:
- Employee: 15% of salary
- Employer: 16.5% of salary
Health Insurance
- Insurance Policy: Mandatory universal health insurance
- Coverage: Healthcare, dental care, prescription drugs, etc.
Compensation and Benefits
- Minimum Wage: HRK 5,275 per month
- Salary Structure: Typically includes base salary, bonuses, and allowances
Work Permits and Visas
- Permit Requirement: Non-EU/EEA citizens require a work permit
- Application Process: Apply through Croatian embassies or consulates abroad
Confidentiality and Non-Compete Clauses
- Enforceability: Enforceable, but must be reasonable and not unduly restrict employee's employment opportunities
- Common Provisions: Confidentiality of information, non-compete clauses, solicitation restrictions
Training and Development
- Legal Requirements: Safety training, skills development, etc.
- Government Support: Government-funded and encouraged policies for corporate training
Workplace Diversity and Inclusion
- Legal Requirements: Prohibits discrimination based on race, gender, religion, or other protected characteristics
- Enforcement: Commissioner for Equal Opportunities investigates and resolves discrimination complaints
Remote Work Policy
- Legal Framework: Remote work is permitted, but must be specified in the employment contract
- Tax and Insurance Implications: Remote work may impact tax and social security obligations
Authoritative Website Addresses
- Croatian Ministry of Labor and Pension System: https://www.mrd.hr/