Croatia hikes fines for undeclared workers to €8,000

This week Croatia enacted amendments aimed at curbing black‑market labour. Employers who fail to register workers now face fines that can reach €8,000 per undeclared employee. The penalty structure is tiered: a first offence can be settled for €2,650 per worker, a second offence within three years rises to €6,630, and a third or subsequent offence in the same three‑year period carries the maximum €8,000 fine.

The reforms also introduce a new ‘black‑list’ system. Companies found guilty are publicly named for a period of one year, reduced from the previous six‑year term. They may request early removal from the list by paying the applicable fine. After a year, the Ministry of Labour, Pension System, Family and Social Policy will automatically delete the employer’s name, provided the fine is settled. Additionally, the law mandates that all workers be enrolled in compulsory pension insurance from the day work begins, protecting future pension entitlements for those previously employed informally.