Employer of Record in Croatia

For companies building teams of 10 or more across business, technical, and operational functions — not for individual hires.
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Why companies build teams in Croatia

Lundi supports compliant employment in Croatia for specialist hires and small teams — particularly Zagreb tech and Split/Rijeka coastal operations. For larger SSC and engineering teams we typically recommend Poland, Romania, or Bulgaria.

Languages

Croatian

Payroll Frequency

Monthly

Currency

HRK

Capital City

Zagreb

Employer Tax Rate

16.50%

Croatia joined the eurozone in 2023; the country has a growing tech sector concentrated in Zagreb (Infobip, Rimac alumni, plus regional software development), with secondary hubs in Split and Rijeka attractive for lifestyle-driven roles. Employer social contributions run ~16.5% above gross. Strong fit for specialist engineering hires, small distributed teams, or coastal lifestyle-oriented operations. For larger SSC and engineering teams Lundi typically recommends Poland, Romania, or Bulgaria — deeper talent pools and more mature international-employer infrastructure.

Cost of Employment in Croatia

What it costs to employ someone through Lundi.

Lundi's cost is the all-in cost of the employee — gross salary plus statutory employer contributions plus customary benefits — and a Lundi management fee on top. The management fee depends on team size and scope: smaller teams pay a higher per-head rate, teams of 20+ get materially better unit economics, and Build–Operate–Transfer engagements are structured separately.

The alternative paths look like: setting up your own local entity (meaningful months of legal and accounting work, plus ongoing in-country HR, payroll, and compliance infrastructure), engaging a local recruitment agency on contingency (typically a percentage of first-year compensation, paid once, with no ongoing employment relationship), or hiring as a contractor (lower upfront cost, real misclassification risk in most jurisdictions). Lundi is faster than entity setup, structurally different from contingency recruitment, and lower-risk than contractor arrangements.

Talk to us for specific pricing.

Talk to us about Croatia

Employer Tax Costs in Croatia

In Croatia, an employer’s social contributions total 16.5%. Health Insurance is paid at 16.5% of an employee’s gross salary, and is not capped.

Employee Income Taxes in Croatia

Employees in Croatia pay between 24% and 36% in taxes depending on their income bracket.

Employee Probation in Croatia

A probationary period in Croatia cannot exceed six months. During the agreed probationary period, the termination period must be at least seven days.

Employee Overtime in Croatia

In Croatia, full-time employment cannot be more than 40 hours per week. An employee can work up to 48 hours in a week, but eight of these will be overtime.Employees are entitled to a minimum of 12 hours break between two consecutive work days and at least 24 consecutive hours once a weekIt is a legal obligation in Croatia to include details of any leave on a payslip, so all time off must be recorded and approved.

Employee Notice in Croatia

In Croatia, the notice period is defined by law and varies depending on the length of continuous employment, and potentially with age. It goes as follows:

  • Two weeks for more than one year employment
  • One a half months months for more than two years employment
  • Two months for more than five years employment
  • Two and a half months for more than 10 years employment
  • Three months for more than 20 years employment

Termination in Croatia

All terminations must be notified to the employee in writing and there can be regular or exceptional terminations. The types of terminations are as follows:Regular termination (with agreed notice):Notice for business reasons: This can include redundancy of an employee’s role due to economic, technical, or organisational reasons. The employer must first check that they cannot engage the employee in another role and is not allowed to hire someone in the same role for at least six months.Notice for personal reasons: This means the employee is unable to fulfil their contractual duties due to a permanent characteristic or capabilities. Again, the employer must check that they can't engage the employee in another suitable role first.Notice for employee's misconduct: This refers to breach of contract. The employee should get a written warning with the possibility of termination in case of continuing breach of contract—unless circumstances mean it is reasonable not to give this warning. Notice due to failing probationary period: This type of termination means that an employee does not perform to expectation during the probationary period. Exceptional terminations can be executed with only 15 days' notice from learning about an issue where there is a serious breach in employment relationship or other highly important fact.

How Lundi works in Croatia

Build

We scope your team and recruit the right people in-country — finance, accounting, HR/payroll, BD, ops, or IT.
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Operate

We employ the team via our local entity and run the day-to-day — payroll, compliance, HR, and performance management.
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Transfer

When you're ready, we transition the team to your own legal entity. Or stay on Lundi's infrastructure indefinitely — your choice.
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Why Companies Choose Lundi

If you need help with anything, we're here for you

Who is Lundi for?

Lundi works with companies building teams of 10 or more across business, technical, and operational functions . Not for one-off hires or individual placements.

How is this different from an EOR?

EOR platforms employ individuals for you. Lundi recruits, employs, and operates concentrated teams — including day-to-day management, HR, and an optional path to your own entity. It's the operating model for companies that have outgrown the EOR ceiling.

Still have any questions? Talk to us.