Summary

The Croatian social security system is comprehensive, providing old age, disability, sickness and maternity benefits, family benefits and industrial injury and unemployment coverage.

Details

Contributions

Social Security is payable by employers on total employee compensation, but earnings subject to employee contributions are capped at €11,958 per month. Employees pay 20% contributions on all income between €757 per month and the cap. Employers pay 16.5% uncapped.

Treaties

Croatia has social security agreements with all European Economic Area countries and 9 non-EEA countries, including Canada, Australia, Korea and all the countries of the former Yugoslavia except Kosovo. These agreements generally determine which country has the right the levy social security contributions, has the obligation to provide benefits, and prevent social security being levied twice on the same income. Most inbounds expatriates to Croatia therefore continue to pay home country social security contributions.

There is no UK agreement but moves between the two countries are in general covered by the UK/EU Trade and Cooperation agreement, although this limits home country coverage to two years, without the possibility of extension Special rules apply to individuals working in Croatia and other EEA countries (plus the UK) on a regular basis.

There is no bilateral agreement with the US, so US expatriates working in Croatia will generally have a double social security charge.

Exemptions

Employer contributions to an employee's voluntary (third pillar) pension plan are tax-deductible up to €804 per year.

Administration

Different bodies oversee the pension/benefits regime and the healthcare system, however all contribution collection responsibilities sit with the Ministry of finance and substantially all contributions are dealt with through employer withholding.

Benefits

Individuals are entitled to a first pillar old-age pension when they reach 65 (men) or 64 (women) and have paid at least 15 years of contributions. The retirement age for women is being raised each year until 2030, when for both men and women it will be 65. A full pension is dependent, in most cases, on 35 years of contributions.

Need more specific advice?Ask an expert