Croatia asks more of employers than almost any other EU member state on sick leave: the first 42 calendar days of every ordinary absence come out of the employer’s own funds. Only from day 43 does the Croatian Health Insurance Fund (HZZO) take over — and when it does, a monthly ceiling applies that many employees do not expect.
For an employer with a handful of staff and one long absence, that 42-day exposure is a genuine cash-flow event, not a rounding error.
Key takeaways
- The employer pays salary compensation (naknada plaće) for the first 42 calendar days of temporary incapacity from its own funds — 7 days for workers with recognised disability status.
- The rate is at least 70% of the base, calculated on average pay over the preceding six months. Contracts and collective agreements may set more, never less.
- HZZO pays from day 43: 70% of the base for the first six months, rising to 80% thereafter.
- HZZO’s payment is capped at €995.45 per month for full-time work, with a floor of €353.15 per month.
- Work injury, occupational disease, pregnancy complications, parental-leave-related cases and leave following a child’s death are paid at 100% with no monthly ceiling.
- The 42 employer-funded days are counted cumulatively across the calendar year, not per absence.
The 42-day employer period
Article 40 of the Compulsory Health Insurance Act (Zakon o obveznom zdravstvenom osiguranju) places the first 42 days of temporary incapacity on the employer. For an insured worker with recognised work-disability status (invalid rada) the employer period is 7 days.
The critical detail — and the one that catches out employers running a naive “first 42 days of this absence” rule — is that the 42 days are cumulative within the calendar year. Six separate week-long absences exhaust the employer period just as effectively as one six-week absence. An employee returning from a long illness in March does not reset the counter in April.
From day 43, HZZO funds the compensation, though the employer generally continues to pay the employee and reclaims the amount from HZZO afterwards. The employer is the paying agent throughout; only the funding source changes.
The rates
| Period | Funded by | Rate |
|---|---|---|
| Days 1–42 (7 for disabled workers) | Employer | At least 70% of the base |
| From day 43, first six months | HZZO | 70% of the base |
| From day 43, after six months | HZZO | 80% of the base |
| Work injury / occupational disease | HZZO | 100%, no ceiling, from day one |
The base is, as a rule, the average of salary paid over the last six months. That backward-looking average means a recent pay rise takes months to feed through into sick pay, and a period of reduced hours drags the base down long after normal hours resume.
Most Croatian employers pay full salary during short absences by contract or collective agreement. That is a commercial choice, not the statutory floor — the statute sets 70% as the minimum.
The HZZO ceiling and floor
Once HZZO is funding the absence, two limits apply to full-time work:
- Maximum: €995.45 per month. Even where 70% or 80% of the base exceeds that figure, HZZO pays no more.
- Minimum: €353.15 per month, tied to the budgetary base.
The ceiling is the number employees notice. A worker on a comfortable Croatian salary who passes day 42 can see their income drop sharply, because the percentage is applied first and the ceiling then truncates the result. Employers who promise “full pay while sick” without modelling the post-day-42 gap are making a much larger commitment than they realise.
The 100% cases — work injury, occupational disease, pregnancy complications, parental-leave-linked compensation and leave following the death of a child — are not subject to the monthly ceiling. Some other 100% cases, including organ transplant situations, care for a child under seven, and isolation as a disease carrier, are paid at 100% but remain within the €995.45 cap. The distinction between capped and uncapped 100% is easy to miss and expensive to get wrong.
Certification and the PNR process
Temporary incapacity (privremena nesposobnost za rad, PNR) is established by the chosen family physician, who opens the absence and issues the report. Extended absences require review, and after longer periods the case is escalated to HZZO’s own medical assessment.
The employer’s role is administrative but load-bearing: it must submit the compensation calculation and the supporting documentation to HZZO to obtain reimbursement of the post-day-42 amounts. Incomplete or late submissions delay reimbursement, not the employee’s payment — which is exactly why the delay tends to go unnoticed until a quarterly reconciliation.
Common employer pitfalls
1. Resetting the 42 days for each new absence
The employer period is cumulative across the calendar year. Treating each absence as a fresh 42 days can mean funding several months of sick pay a year that HZZO should have been carrying.
2. Paying below 70%
Seventy per cent of the six-month average is the statutory floor. Contracts may improve on it; nothing may reduce it.
3. Using current salary instead of the six-month average
The base is the average of the preceding six months. Using this month’s salary produces the wrong figure in both directions after any pay change.
4. Promising full pay without modelling the ceiling
Above-average earners lose the most at day 43, because the €995.45 monthly ceiling truncates the calculated amount. A blanket full-pay promise is a large open-ended liability for long absences.
5. Applying the ceiling to uncapped 100% cases
Work injury, occupational disease, pregnancy complications and child-death leave are paid at 100% with no monthly ceiling. Applying the cap to those underpays the employee.
6. Missing the 7-day rule for disabled workers
Workers with recognised work-disability status shift to HZZO funding after 7 days, not 42. Employers that never configure this over-fund those absences by five weeks.
For how Croatia’s long employer period compares with the rest of the region, see our European sick leave comparison. For the paid-holiday entitlement, read annual leave in Croatia, and for cross-border payroll, our guide to managing leave across Europe.
Frequently asked questions
Who pays sick leave in Croatia?
The employer funds the first 42 calendar days of ordinary temporary incapacity from its own resources — 7 days for workers with recognised disability status. From day 43 the Croatian Health Insurance Fund (HZZO) funds it, though the employer normally continues paying the employee and reclaims the amount.
How much is Croatian sick pay?
At least 70% of the base — the average salary over the preceding six months — during the employer-funded period. HZZO then pays 70% for the first six months and 80% thereafter, subject to a monthly ceiling.
What is the maximum HZZO sick pay per month?
€995.45 for full-time work. The minimum is €353.15 per month. Work injury, occupational disease, pregnancy complications and child-death leave are paid at 100% with no ceiling.
Are the 42 employer-paid days counted per absence or per year?
Per calendar year, cumulatively. Multiple short absences draw down the same 42-day employer period.
Which cases are paid at 100%?
Work injury and occupational disease, pregnancy complications, parental-leave-linked compensation and leave following a child’s death — all uncapped. Organ transplant cases, care for a child under seven and isolation as a disease carrier are also paid at 100% but stay within the monthly ceiling.
Can an employer pay more than 70%?
Yes. Seventy per cent is the statutory minimum; employment contracts and collective agreements commonly provide full salary, and many Croatian employers do.
Putting it into practice
- Track the 42-day employer period as an annual cumulative balance per employee, and flag disabled-worker cases at 7 days.
- Calculate on the six-month average, refreshed monthly, not on current salary.
- Model the day-43 drop for above-average earners before making any full-pay commitment.
- Maintain the capped-vs-uncapped 100% categories as explicit payroll codes.
- Submit HZZO reimbursement documentation promptly and reconcile receivables each quarter.
The Croatian rule that trips up the most systems is the cumulative 42-day counter. A leave platform that runs that counter across the calendar year — rather than per absence — is what stops an employer quietly funding weeks of sick pay that HZZO owed.
Sources
- HZZO — salary compensation during temporary incapacity for work
- Compulsory Health Insurance Act (Zakon o obveznom zdravstvenom osiguranju), consolidated text — HZZO
- Zakon o obveznom zdravstvenom osiguranju, art. 40 (employer’s 42 days) — zakon.hr
Last updated: 20 July 2026. This article is general guidance, not legal advice. The HZZO monthly ceiling and floor are revised periodically — confirm current figures with HZZO before applying them in payroll.