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Benefits

Mandatory Employee Benefits in Croatia

Covered by the employer

Health insurance

Croatia provides basic mandatory health insurance to all of its residents, funded through social security contributions by employers at a rate of 16.5% of the employee’s gross salary. This contribution also funds worker’s accident insurance and unemployment.

Covered by the employee

Pension

The Croatian pension system is divided into three pillars. For the first two pillars, contributions are mandatory by employees at a rate of 20% of their gross income. This benefit is funded through the employee’s social security contributions. Employers’ contributions are optional and fall under the third pillar of the system.

Non-Mandatory Employee Benefits in Croatia

Meals

Tech companies with offices in Croatia often offer free breakfast or coffee, fruits and snacks to their employees daily.

Public transportation allowance

Most collective agreements include a public transportation allowance as a benefit, and even if they do not, most companies would still provide it tax-free.

Supplementary pension

The Croatian pension system is divided into three pillars. The first pillar is the generational solidarity system. The second is compulsory individual pension insurance, which is part of the social security contributions paid by employees. The third is voluntary pension insurance, which some employers choose to offer their employees.

All the employer’s payments into the third pillar of the pension insurance are not considered as salary up to HRK 500 per month / HRK 6,000 annually. For the company, it is a tax-recognised expenditure.

Supplementary health insurance

Croatia provides basic mandatory health insurance to all of its residents, funded through social security contributions by employers. However, some companies, especially tech companies, often offer private health insurance with dental and vision coverage as an employment benefit.

Supplementary health insurance is non-taxable for employers up to HRK 2,500 per year per employee. The only condition is that employers have to conclude policies for their employees, but it doesn’t require all employees to benefit from the tax incentives.

Life insurance

Life insurance is not a common benefit and is usually reserved for high-ranking positions. Life insurance consists of a defined lump sum that is payable in case of death, disability, or severe illness. Life insurance with a saving component is not taxable for insureds and their beneficiaries.

Cash bonus

It is common for companies to use cash bonuses as incentives for employees, mostly based on performance.

Yearly raise

It is common for companies to provide employees with yearly raises based on service.

Flexible working hours

More and more companies are giving employees flexible working hours and the option to work from home two to five times a week.

Travel insurance

Most companies in Croatia offer travel health insurance to their employees, covering the cost of medical treatments during travel and staying abroad.

Wellness

Some tech companies offer various wellness perks that can go from gym membership and yoga and meditation classes to massages and employee assistance programs.

Stock options

Although it is uncommon, some tech startups offer stock options (from 0.005% to 0.02%) as part of their benefits to attract employees.

Training & educations

Many tech companies make professional training available to employees, from tech meetings and conferences to online subscriptions and books.

This page was last updated on 29th September, 2021. If you have questions about this page, send us an email.