Recently, an increasing number of companies have a need for posted workers.
Pursuant to the Contributions Act, a posted worker is a person insured on the basis of employment who was sent abroad by the employer to perform work for the employer, and who in accordance with the regulations on compulsory insurance, EU regulations on coordination of social security systems and interstate social security contracts work abroad remains in the system of compulsory insurance of the Republic of Croatia and a person insured on the basis of employment sent by the employer abroad to perform duties in a diplomatic mission or consular office of the Republic of Croatia and a person sent by a foreign employer to work in a domestic company in accordance with the provisions of the regulations of the European Union on the coordination of the social security system and the provisions of interstate agreements on social insurance, and has a regulated status in the insurance of the employer’s state.
Such workers usually remain employed by the employer who sent them to work, and on that basis they are most often in compulsory insurance in that country. It is necessary for the employer to obtain Certificate A1 proving affiliation to the social security system. Workers’ salaries are taxed in accordance with the Law and the Ordinance on Income Tax, but when sending workers from Croatia to a country with which we apply an international agreement on the avoidance of double taxation, international agreements take precedence.