Croatia Payroll — JOPPD, Doprinosi & Gross-to-Net

Register the new employee with HZMO (pension) and HZZO (health) before their first working day. Obtain the employee's OIB (personal identification number), confirm date of birth for Pillar II membership, and collect the tax card (Porezna kartica / PK) to determine the applicable personal allowance and any declared dependants.

Compute the monthly payslip (obračun plaće) for each employee: apply the low-income pension base relief (for gross ≤ EUR 1,300), deduct the 20% employee pension contribution (15% Pillar I + 5% Pillar II, capped at EUR 11,958/month base), subtract the personal allowance (EUR 600 basic plus any declared child allowances), apply the two-rate JLS income tax (lower rate up to EUR 5,000 tax base / higher rate above), and derive net pay. Do NOT deduct or add a surtax (prirez) — it was abolished 1 January 2024.

Prepare and submit the JOPPD report (Izvješće o primicima, porezu na dohodak i prirezu te doprinosima za obvezna osiguranja) electronically via ePorezna. The JOPPD is the single consolidated monthly report covering gross pay, withheld income tax, personal allowances, taxable income, and all mandatory contributions (both employee pension and employer health) for every employee. File by the 15th of the month following the month of payment.

Remit withheld income tax to the Tax Administration (Porezna uprava), employee pension contributions (Pillar I and Pillar II) to HZMO, and the 16.5% employer health contribution to HZZO. All payments are tied to the JOPPD reference and must reach the state accounts by the same deadline as the JOPPD filing (on or before the 15th of the following month). Net wages are transferred directly to each employee's bank account.

Post the payroll journal entries: gross wages and the 16.5% employer health contribution are operating expenses; withheld income tax and the 20% employee pension are liabilities cleared on payment. At year-end, verify that all employees' annual withheld tax matches the Tax Administration's automatic special-procedure assessment. Most employees are reconciled automatically; those with self-employment income or seafarers must file an annual income tax return (godišnja prijava poreza na dohodak) by end of February. Flag any employee who may benefit from filing a ZPP-DOH request for additional allowance recognition.