The Act provides for the obligation of determining a gross salary which must be cited in the employment contract and which will be paid to the employee for his/her work. Moreover, the Act defines a minimal gross salary to be paid in accordance to the employee’s qualifications. For difficult working conditions, overtime, night work and work on Sundays, holidays or any other day for which the law provides that it is not a working-day, employee is entitled to a salary increase.
Minimum amount of a gross salary in 2019 in the Republic of Croatia is 4.062,51 HRK (≈546 EUR).
Beside the regular salary, determined on the basis of labour regulations, income tax and contributions are also paid on all that the employer pays or gives to the employee for work done. Payroll calculation is done in accordance with the provisions of the Income Tax Act, Income Tax Regulations, and Contributions Act, while the tax payers who are domiciled or habitually resident in the municipality / city which also has the obligation to pay surtax prescribed, need to calculate also that tax.
Below is an example of calculating salaries in Zagreb with the factor of the personal allowance 1. (exchange rate 1 EUR=7.4 HRK)
|TOTAL COSTS FOR THE EMPLOYER (BRUTO II)||8,790 HRK / 1,187,8 EUR|
|Mandatory contribution to be paid by the employer 16.5%||1,237,5 HRK / 167,2 EUR|
|GROSS SALARY (BRUTO I)||7,500 HRK / 1,013.5 EUR|
|Obligatory contribution to be paid by the employee (Pension insurance pillar I – 15% and Pension insurance pillar II – 5%)||1,500 HRK / 202.7 EUR|
|INCOME||6,000 HRK / 810.8 EUR|
|Personal allowance (1)||4,000 HRK / 541 EUR|
|Tax base||2,000 HRK / 269.8 EUR|
|Tax (24%) for an annual salary below 210.000 HRK||480 HRK / 65 EUR|
|Tax (36%) for an annual salary over 210.000 HRK||0 HRK / 0 EUR|
|Total tax amount||480 HRK / 65 EUR|
|Surtax (18%)||86.40 HRK / 11.7 EUR|
|Total tax and surtax||566.40 HRK / 76.7 EUR|
|NET SALARY||5,433,60 HRK / 734.1 EUR|