Employer of Record Croatia & PEO | INS Global

Employer of Record in Croatia & PEO

Hire Globally, Pay Locally, Expand Effortlessly

If you’re looking for a reliable partner for entering new markets, INS Global is fully equipped to ensure a speedy and secure expansion. For over 15 years INS Global has been assisting companies of all sizes to expand across the world. Now, our PEO in Croatia and our experienced team of global expansion services experts can offer personalized solutions for any obstacles that might arise. 

With an Employer of Record (EOR) in Croatia, you can easily bring over your staff team and begin operations in the new market quickly and efficiently. An EOR can also help you recruit local talent and expand your workforce, all while remaining compliant with local labor and employment laws. 

Similarly, a Professional Employer Organization (PEO) can help you handle administrative tasks like contract management, payroll, taxes, etc. Having a PEO partner reduces the chance of risk and legal errors and makes global expansion a reality in record time. 

Employer of Record in Croatia & PEO - Summary

Employer of Record in Croatia & PEO

Why Choose a PEO for Global Expansion?

Legal Counsel Available at All Times

A new market means a new and unfamiliar legal system. Making mistakes with employment and labor law can often result in high fees and fines. Having a PEO’s legal team on hand always keeps both your company and your employees legally secure. 

Cut Down on Unnecessary Costs and Services

A PEO covers every aspect of payroll and HR services so that you don’t need to outsource your problems to multiple providers. 

Greater Focus on Reaching Market Goals

With a PEO you have less to worry about, more time to lead your team, and more chances to move closer to your market goals. A PEO partner gives you space and energy to prioritize the tasks that only you can do. 

Reduce Set Up Time by a Fraction

Traditional company incorporation can take weeks or months before your staff can start working. A PEO can have you up and running in just a few days. 

One Point of Contact for All Your Needs

Through a single platform designed to be as simple as possible, a PEO provides recruitment, onboarding, payroll, and HR services, plus ongoing support. 

PEO or Company Incorporation: What Makes a PEO the Smarter Choice?

Traditional company incorporation may be a time-tested method, but it’s outdated in today’s evolving and highly competitive business world. With company incorporation, you have to go through the process of setting up a branch or subsidiary all on your own in an unfamiliar system. This involves lots of paperwork and potential complications.  

Alternatively, a PEO streamlines the process by acting as the legal entity so that you can enter the new market swiftly and safely. 

A PEO also provides:   

  • Less wait time 
  • Reduced expenses and a smaller risk of compliance errors 
  • A team that is always on hand with practical solutions 
  • Local connections with recruitment and business support systems 

PEO/EOR vs Company Incorporation

The Advantage in Figures

PEO/EOR Company Incorporation
80% Less Expensive
Market Entry
2-5 Days
6 Months
Employee Turnover
Decrease by 14%
98% of the Current PEO Clients
Administrative Fees
Saves an Average of $450
Costly Payroll and Compliance Fines
Help Avoid
Company Growth Rate
7 - 9%
Closed During Pandemic
Employer of record in Croatia
testimonial from Manuel Ramos


Manuel Ramos


Managing Director

We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately. 


How Does A PEO In Croatia Work?

With a simple four-step plan INS Global can streamline and accelerate your global expansion strategy. 

  1. We communicate from day 1 with you to create a tailored plan for your specific needs. 
  2. Our PEO in Croatia acts as the legal entity through which you easily can bring workers into your local organization. 
  3. We take care of all HR responsibilities like payroll, contracts, and taxes. 
  4. Your staff can continue day-to-day operations while we make sure you remain legally compliant in every way. 

Understanding the Differences Between a PEO and EOR

While a PEO and EOR are often mentioned together, the services that they offer differ in important ways. Before deciding to partner with one, you should learn about their differences so you can choose the one that’s best suited to your needs. 

  • PEO and EOR are both services that offer HR outsourcing for employees of other companies. Some of the functions they manage include recruitment, onboarding, payroll, etc. 
  • One of the differences is that an EOR also becomes the official employer for any employees it hires. This makes the EOR legally responsible for the employee. 
  • Another difference is how the contract is made. In a PEO, the contract is between the company and the employee. In an EOR contract, however, the contract is directed by the company but officially made between the Employer Of Record and the employee. 

Labor Law in Croatia - 2024

Employment Contracts

  • Employee contracts in Croatia are required to be in writing and must be in the local language of Croatian. Salary amounts should be stated in the local currency of the Croatian kuna. 
  • Indefinite-term contracts are considered standard. Fixed-term contracts are typically only made in the case of seasonal or temporary work. 
  • Probation periods cannot last longer than six months. During the probation period, the notice for termination is 7 days. 
  • The standard notice period is 30 days 
  • Severance pay is calculated at one-third of a month’s salary per year of service, capped at an amount equal to six months of salary. 

Working Hours

  • A 40-hour work week is standard.  
  • Employers must submit a written request if they want employees to work overtime. Overtime is capped at 10 hours a week. 
  • The specific rate for overtime compensation is not mandated by law, but paying 150% of regular wages is considered good practice. 


  • There are 14 public holidays in Croatia. 
  • Employees who work during public holidays are expected to be compensated extra according to details as specified in their contract or collective bargaining agreement (CBA).

Sick leave

  • The first 42 days of sick leave are covered by the employer and must be compensated at 70% of the employee’s regular salary. An employer may request a sick leave report signed by a healthcare professional. 
  • After 42 days the employee will receive compensation from national health insurance. 
  • For disabled employees, the employer only covers the first 7 seven days; the rest is covered by national insurance. 

Maternity/Paternity Leave

  • Mothers are eligible to receive a minimum of 28 days of paid leave before birth and 70 days after.  
  • From the 71st day onward, the father may take 10 days of paid leave to care for the child until they are six months old. 
  • Parental leave is calculated after maternity leave ends and ranges from 4-15 months. This can be taken by either parent until the child is 8 years old.  
  • Parental leave can be taken part-time or in 30-day batches or all at once. 
  • Parental leave is compensated at 80% of the employee’s salary for the first six months and 50% for the remaining time. 
  • All maternity and parental leave is covered by the state. 

Tax Law and Social Security Payments in Croatia

  • VAT is 25%. 
  • Income tax is charged at a progressive rate from 20-30%. Surtaxes range from 0-18%. 
  • Employer health insurance contributions amount to an equivalent of 16.5% of the employee’s wage. 
  • Employers with more than 20 employees are required to employ a certain number of disabled employees which amounts to 3% of the workforce. If they do not hire disabled employees, they must pay a monthly fee equal to 20% of the gross monthly salary for each disabled employee that should have been employed. 
Employer of Record in Croatia & PEO


Discover More Solutions in Croatia


The cost of expert EOR services in Croatia is determined as a portion of the worker’s monthly salary. This cost covers all HR duties necessary to guarantee adherence to all regional employment laws.  

Without having to set up a specific organizational structure, handling employer responsibilities in Croatia through an EOR is safe, legal, and effective. EORs in Croatia achieve this by employing qualified local legal experts and always providing first-rate HR support. 

Your team members will receive correct and timely monthly payments, access to all Croatian employee benefits, and have total legal protection thanks to an EOR service agreement.  

Independent contractors who deal with their clients inside a Croatian EOR framework may be qualified for many or all of the same advantages as regular employees while maintaining complete control over their work. The same thing would happen if they were employing an umbrella organization to manage payroll 

By utilizing their extensive professional networks, in-depth knowledge of local business resources and benchmarks, and persistent dedication to ethical hiring practices, our team of skilled recruitment consultants can locate the best local talent in Croatia for your needs.  

As a result, integrating these new hires into our EOR framework will be simpler and more efficient than if they had been hired using more traditional hiring practices. 

Through INS Global, you receive comprehensive compliance-assured employment outsourcing assistance from a truly global EOR services provider. This complies with all municipal, regional, and federal laws.

There can be minimum hire standards or a cap on the number of employees you can hire at once with some Croatian PEO or EOR service providers. However, INS Global is aware that you may need to scale up or down swiftly at any time as part of your global business strategy. Therefore, working with us gives you the flexibility to hire however many or few employees you need to accomplish your objectives. 

Salary, recruiting service fees, signing bonuses, and additional direct and indirect costs, including incentive schemes, foreign employee tax administration, and social insurance, should all be considered when calculating the cost of hiring in Croatia. 

By forgoing the requirement for a local location, you can bypass time-consuming incorporation laws by employing Croatian PEO services.  

However, it’s still a good idea to give your staff the choice to work in a shared workspace or the freedom to do so whenever and wherever it’s most convenient

Absolutely. When Croatians or foreigners are subject to different local employment rules, tax legislation, or employee benefits, we can handle the relevant visa and work permit procedures.  

EOR and PEO solutions are the best for assuring effective and secure employment of foreign or local personnel for businesses of all sizes, from SMEs to multinational corporations. If necessary, our services quickly scale up to meet rising employment demands and replace more detailed internal HR requirements.  

Businesses in many industries that either don’t have their own structures in a target country (or desire to avoid cost-scaling issues while focusing on expansion) would benefit significantly from the legal expertise offered by PEO and EOR services. 

The two types of third parties that can be used to directly or indirectly hire independent contractors are staffing companies and umbrella businesses.  

The majority of independent contractors in Croatia are either self-employed or own and operate their own small businesses.  

An independent contractor could be asked to submit a CV, portfolio, verified references, and possibly a signed NDA before work begins.  

Payroll in Croatia is organized on a monthly basis, with the law mandating that payment must occur no later than the 15th of the following month. Payments in cash are no longer valid, and employers are expected to manage deductions and payments for taxes and social security before making a digital payment.  

As of January 2023, the minimum wage in Croatia has been increased to 700 EUR/Month (765.705 USD/Month). The euro replaced Croatias previous currency, the kuna, on the 1st of January, 2023.  

With no visa-on-arrival system, all applicants must apply for the appropriate visa before heading to Croatia if intending to live or work in the country.  

As of 2023, Croatia is a Schengen area member. Citizens of the EU do not require visas to travel or live in the country.  

Those seeking to perform limited business operations in Croatia, such as attending meetings, exhibitions, or conferences, can apply for a C visa. These allow the holder to stay in Croatia for up to 90 days in a 180-day period and may be valid for up to 5 years.  

A long-stay D visa (dugotrajna viza) is available for those applying for a work permit or long-stay visa. It is valid for up to 6 months, during which the applicant applies for a work permit valid for up to a year with a chance for renewal.  

Additionally, Croatia is part of the EU blue card system, allowing for stay and travel within most of the EU for up to 4 years at a time.  

In Croatia, employers are responsible for organizing and deducting employees income tax payments and social security fund contributions each month. Employers in Croatia must make an additional contribution to their employees health insurance equivalent to 16.5% of the employees gross monthly salary.  

Employees in Croatia are entitled to mandatory health insurance, unemployment insurance, workplace accident insurance, and a state pension. 

Employment contracts must be provided in writing at the start of an employment relationship.  

Unilateral changes to a fixed-term contract are allowed if the contract contains a clause giving them the power. All other changes must be made with the agreement of both parties. As of 2023, any amendments made to a fixed-term contract in Croatia automatically mean that the contract is considered to be new.  

All workers in Croatia pay for mandatory state healthcare insurance. This means they benefit from the universal healthcare system through the basic plan, with the option to take additional private plans. 

Notice periods in Croatia vary between 2-12 weeks, depending on the length of service.  

Severance pay in Croatia is calculated as 1/3 of an employee’s monthly wage per year of employment after the 2nd year of employment. This severance pay is capped at the equivalent of 6 months’ standard salary.  

The Croatian Labor Act establishes the majority of employment regulations in the country. It was last updated in 2023.  

Employees in Croatia are eligible for paid leave on the countrys 14 nationally recognized public holidays.  

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