PEO in Croatia & Employer of Record Croatia | INS Global

PEO in Croatia

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. 

PEO in Croatia - Summary

PEO in Croatia

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Traditional company incorporation may be a time-tested method, but it’s outdated in today’s evolving and highly competitive business world.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 
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

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. 
PEO in Croatia


Discover More Solutions in Croatia


No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.