The law 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 minimum gross salary in the Republic of Croatia in 2021 is HRK 4,250.00.

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

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%.

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 HRK 360,000.00. 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%. However, the prescribed exemption or reduction is carried out by the Tax Administration in a special tax assessment procedure, which means that employers during the year calculate the tax advance for these persons in the manner prescribed for all other employees, without exemption or reduction.

The following is an example of how a salary is calculated in the City of Zagreb when applying a personal deduction factor of 1.


Mandatory contribution to be paid by the employer 16.5% 1,237.5 HRK / 164.12 EUR
GROSS SALARY (GROSS I) Amount 7,500 HRK / 994.7 EUR
Obligatory contribution to be paid by the employee (Pension insurance pillar I – 15% and Pension insurance pillar II – 5%) 1,500 HRK / 198.9 EUR
INCOME Amount 6,000 HRK / 795.8 EUR
Personal allowance (1) 4,000 HRK / 530.5 EUR
Taxable income 2,000 HRK / 265.3 EUR
Tax (20%) for an annual salary below 360.000 HRK per year 400 HRK / 53.1 EUR
Tax (30%) for an annual salary over 360.000 HRK per year 0 HRK / 0 EUR
Total tax amount 400 HRK / 53.1 EUR
Surtax (18%) 72 HRK / 9.5 EUR
Total tax and surtax 472 HRK / 62.6 EUR
NET SALARY Amount 5,528 HRK / 733.2 EUR