Salary contributions
A pension contribution in two pillars (MIO I and II) is withheld from the employee’s gross pay. Health insurance is employer-borne on top of gross (Bruto 2) and does not reduce net. The rates shown are those in force for 2026.
What actually comes out of your pay
In Croatia gross pay does not have a single lumped “contribution” taken out of it: the pension is split into two pillars — and health insurance does not touch your net at all, because the employer pays it on top of gross. So your payslip shows two pension lines deducted from pay, while the health contribution is carried separately, as an employer cost. The table below shows the whole picture, on the rates in force for the 2026 period.
| Contribution | Paid by | Rate |
|---|---|---|
| MIO 1st pillar (generational solidarity)from pay; base reduced for low salaries (čl. 21.a) | employee | 15 % |
| MIO 2nd pillar (funded savings)from pay; on full gross | employee | 5 % |
| Health insuranceon top of gross (Bruto 2) — does not reduce net | employer | 16,5 % |
| Total from pay (employee) | 20 % | |
MIO 1st and 2nd pillar — your total pension share
MIO 1st pillar (generational solidarity) funds current pensions on a pay-as-you-go basis and is charged at 15 %. MIO 2nd pillar (funded personal savings) is paid into your own account in a mandatory pension fund at 5 %. Together they make 20 % — the total pension contribution deducted from your gross pay.
Workers who remain in the 1st pillar only pay the whole pension share into the 1st pillar (the same 20 % in total). Choosing “both pillars” or “1st pillar only” does not change how much is deducted overall — it only changes how the low-salary base reduction below applies.
The low-salary base reduction (čl. 21.a)
For lower salaries the law provides a reduction of the base used to charge the 1st-pillar pension contribution (Contributions Act, Article 21.a). The rule has two thresholds: for gross pay up to 700,00 € the base is reduced by 300,00 €, and for gross pay between 700,00 € and 1.300,00 € it is reduced by half of the distance to the upper threshold. Above 1.300,00 € there is no reduction.
In this model the reduction applies to the 1st-pillar base, while the 2nd pillar is charged on full gross. That is an important, not-yet-confirmed assumption (whether the reduction is tied to the 1st pillar only or to the whole pension base) — an open question the final sign-off resolves. Note too that, under Article 21.a(7), pension entitlements are determined on the base without this reduction.
Example at the minimum wage (1.050,00 € gross). That amount is inside the reduction band, so the 1st-pillar base is reduced by 125,00 € to 925,00 €. MIO 1st pillar is then 15 % × 925,00 € = 138,75 €, instead of 157,50 € without the reduction — that is 18,75 € less. MIO 2nd pillar stays 5 % × 1.050,00 € = 52,50 €. Because of the reduction, net is higher than it would otherwise be.
Health insurance — an employer cost, not a deduction from net
Health insurance is charged at 16,5 %, but — and this is the key point — the employer pays it on top of your gross pay and it does not reduce your net. Gross plus this contribution is called Bruto 2, the total cost of employment. That is why health appears in the table as an “on top of pay” line, not a deduction “from pay.”
This is one of the most common sources of confusion: when comparing with other countries or negotiating pay, it is easy to mix up gross (out of which your net is paid) with Bruto 2 (what your work costs the employer in total). The calculator therefore shows Bruto 2 as a separate row, apart from what is deducted from your pay.
The maximum and minimum base (2026)
Pension contributions are charged up to a maximum monthly base of 11.958,00 € (2026). On the part of gross above that base, the pension contribution no longer applies. There is also a minimum monthly base of 757,34 €, relevant mainly for very low or part-period bases; for full-time work above the minimum wage it rarely binds.
The result is an estimate — for an official calculation, turn to your employer or the Tax Administration.