Guide
Registering an employee (fixed or indefinite)
We draw up the employment contract and register the employee for mandatory social insurance through CROSO before they start work, within the legal deadline and with complete documentation.
Registering an employee is not complicated, but there is one rule you must not break: the worker has to be registered before they start work at all. Being even a day late counts as undeclared work and brings fines measured in hundreds of thousands of dinars per worker. Below we tell you clearly when exactly the registration is filed, which documents you need, how probation works and how much an employee really costs you, so you can hire calmly and lawfully.
What you should know
- The worker must be registered with CROSO before they start work, meaning before their first working day. The registration is filed at the earliest on the day the contract is signed; there is no fixed number of days set by law.
- Employing an unregistered worker is undeclared work and costs dearly. The fine for a company is 800,000 to 2,000,000 dinars per worker, for an entrepreneur 300,000 to 500,000, plus a fine for the responsible person, and it doubles if repeated within two years.
- The employment contract is concluded in writing before work starts and contains the mandatory elements (duties, place of work, hours, salary, start date). A single registration enrolls the worker in pension (PIO), health (RFZO) and unemployment insurance.
- After registration CROSO generates the M-A form, a confirmation of registration you are obliged to hand to the employee as proof they are registered. Registration needs the ID card and JMBG, bank account details and proof of qualifications where required, plus a medical certificate and a work permit for foreign nationals where applicable.
- Probation, if agreed, lasts at most 6 months and must be written into the contract. During probation either side can terminate with at least 5 working days' notice, and the employer must give a concrete written reason.
- An indefinite contract is the default form, while a fixed-term one lasts at most 24 months with the same employer (with exceptions). For each payment you file the PPP-PD no later than the payment date, and deregistration via CROSO within 3 days of the end of employment.
| Feature | Indefinite term | Fixed term |
|---|---|---|
| End date | No predetermined end date | Defined period set in advance |
| Maximum duration with same employer | Not time-limited | No longer than 24 months, with legal exceptions |
| Status under the law | Default form of employment | Concluded for a defined period |
| Registration procedure | Same procedure via CROSO | Same procedure via CROSO |
How we handle it
- 01 Consultation and contract type We help you decide whether to hire on a fixed-term or indefinite basis and explain the differences in deadlines, notice, and obligations, so the contract fits your need and complies with the Labor Law.
- 02 Preparing the employment contract We draft the employment contract with all mandatory elements and gather the employee's data and documents, including the ID card, personal number (JMBG), proof of qualifications, and current account details.
- 03 CROSO registration before start of work We file the single application through the CROSO portal before the employee starts work, enrolling them in pension, health, and unemployment insurance.
- 04 Registration confirmation and health booklet We confirm that the registration was successfully recorded and ensure the employee can validate their health booklet from the first working day.
- 05 Adding to payroll We add the employee to regular payroll so that, for each payment, tax and contributions are calculated correctly and the PPP-PD tax return is filed on time.
- 06 Tracking changes and deregistration We monitor deadlines for fixed-term contracts, prepare annexes and extensions, and on termination file the deregistration through CROSO within the legal deadline.
Frequently asked questions
Do I register a new employee before or after the first working day?
Before. The CROSO registration must be filed before the employee starts work, and the earliest you can file it is once the employment contract is signed. If the person works before being registered, that is undeclared work and carries heavy fines.
How long can probation last and how do I end it?
Probation can last up to 6 months and must be written into the employment contract. Either side can end it with at least 5 working days' notice, and the employer must give a concrete written reason, not just say they are not satisfied.
What is the fine if a worker starts before I register them?
For an unregistered worker a company is fined 800,000 to 2,000,000 dinars, an entrepreneur 300,000 to 500,000, plus 100,000 to 150,000 for the responsible person. The fine is charged per worker and is doubled if it happens again within two years.
What documents do I need from a new employee?
You need the ID card and JMBG, bank account details, and proof of qualifications where the job requires it. A medical certificate is needed for some roles, and foreign nationals also need a work and residence permit. From these you draft the contract and file the CROSO registration.
How much does a minimum-wage employee cost in 2026?
From 1 January 2026 the minimum wage is 371 dinars net per hour, which is roughly 59,000 to 68,000 dinars net a month depending on the number of working hours. On top of the net wage the employer also pays income tax and social contributions, so plan for more than just the net figure.
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