Hire in Croatia

Overview of Croatia

Population: 3,996,595 people (2024)

GDP: 176.67 billion USD (2024 estimate)

Economic Overview‍

The economy of Croatia is developing at a fast pace. With the tertiary sector accounting for most of the GDP, Croatia has become a high-income, service-oriented economy. The GDP contracted by 8.4% in 2020.

Croatia is the 79th freest economy based on the 2021 Index, with an economic freedom score of 63.6. The economic scenario of Croatia is expected to elevate after the eradication of the prevailing pandemic when the grant of European funds increases.

As per the current trends in the country's economic success, poverty is estimated to reduce at a gradual rate in the upcoming years. However, the overall impact of the pandemic crisis and the low rate of savings among the poorer economic class could increase the time consumed in the process.

Croatia has witnessed the transition from a socialist economy to that of a capitalist economy. This transition has led to a decline in technological competencies and research activities since 1990.

Croatia is still fluctuating between the low and medium technological growth model due to limited investment in the Research and Innovations Field, particularly in the business sector. 

Economic liberalization declined market competition, European membership, and other benefits emerging from the downfall of socialism have not been able to bring about the expected economic progress anticipated during the transition to capitalism.

Market Size

Croatia's small market size contributes immensely to entire southeast Europe's economic and political stability. Due to its optimum geographic position, it is well-connected and accessible as a regional hub for several famous U.S. companies. However, Croatia has not been completely transformed into a market economy yet. The socialist mindset that still prevails has proved to hinder the path of maximum market utilization. Most Croatians earn from their government budget, social insurance, or public monopolies instead of companies' revenues functioning on market-based principles.

Here is a glimpse of the present labor market in Croatia:

Source: Eurostat

Industries

Croatia's most prominent and widely operating industries are machinery, equipment, shipbuilding, petrochemicals, electricity, electronics, wood and furniture, pharmaceuticals, food and beverages, cement and construction, chemical and plastics, textiles, footwear, and leather production industries.

Croatia is also a notable producer in the field of energy and water supply. The tourism industry has become a major source of income for a large segment of the population.

Availability of different types of climates, relief, and soil conditions makes it possible to produce various agricultural products using arable land and industrial crops. These products find a huge market when exporting to countries like Italy, Bosnia, Herzegovina, Serbia, and Slovenia.

Internet Speed

To advance the growth of a country, technology and modernization are vital. The internet aids in this development process by leaps and bounds, so it is an essential facet of any industry. Internet connectivity largely depends on the type of connection and location.

There are three mobile phone service providers in Croatia: HT, VIP, and Tele2. Tele2 has the greatest speed, up to 40Mbps.

Many internet service providers provide fixed connection types and offer packages of internet speeds between 4Mbps and 10Mbps. By Croatian law, everyone is entitled to an internet connection of at least 1Mbps.

Source: SpeedTest

Cost of Living in Croatia

The expenses of living in any place differ mainly depending on the requirements and amenities a person needs. However, the cost of enjoying a comfortable living in Croatia is fairly high.

Source: The Amerikanka

Thus, the average cost of living in Croatia sums to about 600 USD or 3860 kn per month.

Cost of Living in Dubrovnik

Cost of Living in Split

Cost of Living in Zagreb

Cost of Living in Rijeka

Cost of Living in Osijek

Source: Numbeo

Average Rent in Croatia

Source: Expatistan

Salary Structure for Various Roles

The salary structure for a particular profession or job role might vary depending on several factors: years of work experience, prevailing market rates, and city location for the occupation. Below is a summary of the most sought job openings in the country and their average salaries:

Talent in Croatia

Job roles in Croatia include essential professional roles in every possible sector of industrialization. Some of the most common professions in Croatia are listed below:

• Admin
• Advertising & Marketing
• Business
• Childcare
• Entertainment
• Computer technology
• Construction
• Cruise Ships
• Finance
• HR/Recruitment
• Hospitality
• Holiday Resorts & Campsites
• Hotel Industry
• Photography & Videography
• Restaurant/Food Service
• Retail
• Summer/Seasonal
• TEFL/ESL
• Tourism/Travel
• Training
• Transportation

International and holiday companies also offer seasonal jobs in Croatia, like the following:

• Sail Croatia offers jobs in marketing, videography, and photography during the summer.‍
• Camp California hires international staff to work as summer camp counselors.

Top Skills City-wise and Occupation-wise

Employment Laws

The recruiter must consider the employment and labor laws to hire in Croatia as per the LABOUR ACT (No. 758/95). The country enforces employment and labor laws to guarantee the following protections to its employees:

• The maximum number of hours an employee can work is 40 hours a week.
• If they work overtime, it must not be more than 180 hours per year.
• An employee should be permitted to take a break of 30 minutes for every 6 hours of work.
• An employer must deliver a reason justifiable by law to resign from any employment opportunity they are connected with in any of the following ways:

            1. Providing a regular notice of termination

             2. Providing an extraordinary notice of termination.

• Employees enjoy the right to obtain severance pay, except when there is an end to the contract signed due to any contractual reason.
• The minimum amount of severance pay should not be less than one-third of the average monthly salary obtained three months before the end of the employment contract.
• The maximum severance pay is equal to six average monthly salaries earned in three months before the resignation of the employment contract. The law, collective agreement, working regulations, or employment contract will generate more severance pay.
• The employer must provide a reasonable cause to throw a permanent or temporary employment contract without maintaining the notice period. In case he fails to do so, the employment relationship will be terminated.
• The minimum notice period is strictly prescribed and depends on the duration of the employment relationship with the same employer as follows:

             1. for less than one year of employment - 2 weeks

             2. for one year of employment- 1 month

             3. for two years of employment- 1 month and 2 weeks

             4. for five years of employment - 2 months

             5. for ten years of employment- 2 months and 2 weeks

             6. for twenty years of employment- 3 months

• If a worker has been in office for twenty years under the same employer, the employer can increase the notice period by two weeks. It also depends on the employee's age. He must be at least 50 to receive two weeks of increment. If he is 55 or more, the tenure of the notice period gets increased by one month.
• When the employment contract is suspended, if an employee does not abide by the obligations, the notice period can be decreased twice.
• Employers must clearly explain the termination notice. The employer also needs to inform an established body about the reason for termination. The council may roll out a standpoint of the decision within eight days. In case of emergency, it can be curtailed to five days.

How Can Squad Help You with Hiring in Croatia?

Croatia hires employees for a diverse range of jobs and provides a comprehensive range of occupations to choose from. It has an ever-broadening job market rich in discovering upcoming talent fields. To enrich this hiring process, Skuad provides a self-serve, unified, and automated HR platform. Our Squad experts emphasize a holistic view of the appointment process for building remote teams.

Connect with Skuad to experience a seamless recruitment process and ensure a smooth onboarding journey for your exceptional employees!