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The Ministry of Labor and Social Welfare of the Republic of Croatia oversees the social security and unemployment scheme. According to them, in 2003 employers were required to pay social security contributions on behalf of their employees at the rate of 20.96% of gross salaries, while employees were required to contribute 20.6% of their gross wages.
Foreign residents employed in Croatia by a Croatian corporate entity will generally be required to contribute to the social security program.
If a foreigner is subject to mandatory social security contributions in his/her home country, the requirement to pay into the Croatian social security system might be waived, depending upon double tax treaties and other considerations. It is important for a foreign national to seek competent legal advice regarding these matters prior to accepting employment in Croatia.
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