Recent developments in Croatia
We understand the challenges of keeping up with regulatory changes. That’s why we actively monitor these changes, so you don’t have to. Read on to discover what’s been happening in the employment landscape in Croatia.
Minimum Wage Increase (2025)
The Croatian government has amended the Minimum Wage Act to increase the statutory minimum wage. The new minimum wage is set at EUR 970 gross per month, applicable to all employees under an employment contract. Employers must update their payroll systems to reflect this change and ensure compliance to avoid administrative penalties.
Amendments to the Remote Work Framework (2025)
The Labor Act (Zakon o radu) has been revised to clarify employer obligations regarding remote work. Employers are now legally required to reimburse employees for expenses incurred while working remotely, including electricity, internet, and equipment maintenance. Additionally, remote work agreements must be documented in writing to specify working hours, health and safety measures, and cost reimbursements.
Increase in Pension and Health Insurance Contributions (2025)
Amendments to the Mandatory Insurance Contributions Act have introduced an increase in pension and health insurance contribution rates, shifting a larger portion of contributions to employers. This affects all employers operating in Croatia, requiring payroll adjustments to accommodate the higher contribution percentages.
Stricter Regulations for Employment of Third-Country Nationals (2025)
Changes to the Foreigners Act (Zakon o strancima) impose stricter conditions on work and residence permits for non-EU nationals. Employers must now demonstrate a shortage of local workforce before hiring foreign nationals and comply with enhanced labor market testing (LMT) requirements.
Enhanced Whistleblower Protection (2025)
Amendments to the Whistleblower Protection Act (Zakon o zaštiti prijavitelja nepravilnosti) require companies with at least 50 employees to establish internal reporting channels for whistleblower complaints. Employers must also appoint a designated compliance officer and ensure anonymity and protection against retaliation. Non-compliance may result in administrative fines and legal liability for employers.
