The Labour Act stipulates the obligation to determine a gross salary which must be specified in the employment contract and which the employer pays the worker for work performed. Also, the provisions of law determine the minimum gross salary an employer must pay a worker for performed work.

For difficult working conditions, overtime and night work, and work on Sundays, holidays or any other day which the law stipulates is a day off, the worker is entitled to an increased salary.

The average monthly gross salary per employee in legal entities in the Republic of Croatia for 2023 is EUR 1,584.00. The prescribed minimum gross salary for 2024 is EUR 840.00.

A worker who receives a salary is obliged to pay income tax and salary contributions. The employer is obliged to calculate, retain and pay these benefits on the worker’s behalf.

Salary is calculated pursuant to the provisions of the Income Tax Act, the Ordinance on Income Tax, the Contributions Act, and income taxpayers who have a permanent or usual residence in the municipality/city who prescribed the obligation to pay surtax, pay surtax.
The following is an example of how a salary is calculated in the City of Zagreb:

BRUTO 2 Amount 2,253.11 EUR
Salary contributions 16.5% 319.11 EUR
BRUTO 1 Amount 1,934.00 EUR
Salary contributions (1st pillar of pension insurance 15% and 2nd pillar of pension insurance 5%) 386.80 EUR
INCOME Amount 1,547.20 EUR
Basic deduction* 560.00 EUR
BRUTO 2 Amount 2,253.11 EUR
Taxable income 987.20 EUR
Tax (23.6%**) on income below EUR 50,400.00 per year 232.98 EUR
Tax (35.4%**) on income above EUR 50,400.00 per year 0 EUR
Total tax 232.98 EUR
NET SALARY Amount 1,314.22 EUR


* The taxpayer’s personal deduction is the basic personal deduction increased by the parts and amounts of the personal deduction to which the taxpayer is entitled under the conditions prescribed by the Income Tax Act
** The rates depend on the place of residence/habitual residence of the taxpayer

An employer who concludes an employment contract with a young person (up to 30 years of age) for an indefinite time period is obliged to calculate only contributions from the base rate for a period of up to five years as follows:

  • Pension insurance contribution at a rate of 20% or 15% for insured pension insurance based on individual capitalized savings, and
  • Contribution for pension insurance based on individual capitalized savings at a rate of 5%.

Within the specified period of five years, there are no obligations to pay health insurance contributions at the rate of 16.5%
Contributions Act (OG 84/08, 152/08, 94/09, 18/11, 22/12, 144/12, 148/13, 41/14, 143/14, 115/16, 106/18, 33/23, 114/23)
Likewise, there is a reduced tax liability by 100% for young people up to 25 years of age and by 50% for young people from 26 to 30 years of age for a salary up to an annual basis of EUR 50,400.00, hence:

  • Workers up to 25 years of age are completely exempted from paying taxes on income, and
  • For persons aged 26 to 30, income tax is reduced by 50%.

Income Tax Act (OG 115/16, 106/18, 121/19, 32/20, 138/20, 151/22, 114/23)