The law establishes the obligation to determine gross wages which must be specified in the employment contract and which the employer will pay to the worker for the work performed. Also, legal provisions determine the minimum gross salary that the employer must pay the worker for the work performed.
For difficult working conditions, overtime and night work, and for work on Sundays, holidays or any other day for which no work is stipulated by law, the worker has the right to an increased salary.
The amount of the minimum gross salary in the Republic of Croatia in 2022 is HRK 4.687,50.
A salaried worker is liable for income tax from independent work, surtax on income tax and contributions from salary. The employer is responsible for the calculation, suspension and payment of the aforementioned benefits on behalf of the employee.
For young people up to the age of 30, the tax on income from self-employment has been reduced for wages up to an annual basis of HRK 360.000,00.
At the same time, the prescribed exemption or reduction is carried out by the Tax Administration in a special procedure for determining the tax, which means that employers during the year calculate advance tax for these persons in the manner prescribed for all other workers, without exemption or reduction.
Salary calculation is carried out in accordance with the provisions of the Income Tax Act, the Income Tax Ordinance, the Law on Contributions, and income tax payers who have their residence or habitual residence in the territory of the municipality/city that prescribed the obligation to pay surcharges also pay surcharges.