The State of Croatia is moving to adopt the single euro currency instead of the HRK

Croatia: the 20th insupportable of the euro arrondissement

After nearly ten years in the EU, Croatia will transition from the kuna to the euro as of next year after receiving final approval from the EU Council on the three necessary laws on July 12, 2022. The implementation of the euro was anticipated by the Croatian National Bank years ago, but the financial crisis slowed things down..

Croatia will finally enter the eurozone in 2023, putting an end to many years of no new member states. For reference, Lithuania became the most recent nation to join the bloc in 2015.

By doing so, the former Yugoslav republic will leave behind the few EU nations that are still using their own currencies, like Romania, Sweden, Bulgaria, Poland, Denmark, Hungary, and the Czech Republic, becoming the 20th member of the euro region. 

  Both Croatia and the eurozone mainstay sake foreigner Croatia as well the society

Here handcuffs apropos substitute euro precinct capability and the expert of the European Elementary Band (ECB) chief estimation Croatia’s below cost. The portion of the euro resolution exclusive of grant-peremptory the tryst for dissimilar tourists and nick day by day traveling to this realm, who won’t attempt to rotation their money for the HRK anymore.

After Zagreb met extremely stringent economic requirements to make it possible, the EU Council approved the adoption of Europe's common currency. "I dare say it's a momentous day for Croatia," said Croatia's Finance Minister Zdravko Maric in Brussels.

Croatia has successfully met the necessary economic requirements, and as of January 1, 2023, payments will be made in euros, according to Zbynk Stanjura, Czech Republic's Minister of Finance and President of Ecofin.

The adoption of the euro in Croatia is an occasion for celebration, according to Christine Lagarde, the president of the European Central Bank. Croatia as a whole made the decision to join the euro and the euro region and was persuaded of its benefits, according to Lagarde.

The adoption of the euro by Croatia offers advantages for both this nation and the entire euro area, according to Valdis Dombrovskis, executive vice-president of the European Commission. The basis for Europe's future economic resilience and strength is being strengthened, according to Dombrovskis.

Bulgaria followed Croatia's lead in announcing its intention to adopt the euro in 2024. When the Bulgarian economy reaches a greater degree of stability and satisfies the convergence criteria

What is the exchange rate for HRK and EUR?

According to a legal act passed by the Council of the European Union, the conversion rate between the Croatian Kuna and the new official currency, the Euro, is 7.53450 Kuna for every 1 Euro. This rate is in line with the kuna's central rate in the ERM II, which is currently in place (Exchange Rate Mechanism).

On July 18, 2022, Croatian euro coins officially began to be minted. 

What does this modification mean if you use Deel to pay your employees?

You might be curious about how this changeover to the euro would influence the payments you make to your employees if you have staff or contractors in Croatia. Deel has been taking the necessary precautions to get ready for this transformation and keep doing business legally.

All paystubs will include payments expressed in two currencies starting in September 2022. (EU and HRK). Beginning in September, all proposals must include the gross monthly compensation in both HRK and EUR.

All future payments to employees, including all statutory benefits, contributions, and taxes, will be made in euros beginning in January 2023.

Hire and pay employees without trouble in the EU

hiring workers from European states? Deel can assist with legal contracts, tax preparation, quick and safe payments, and more. 

The legal staff at Deel makes sure that every agreement made with workers from more than 150 different nations is compatible with local laws and eliminates any possibility of misclassification. You may handle these contracts and other pertinent paperwork for your whole crew using our platform. With one-click payments, you can fund your whole payroll in a matter of seconds and pay your employees on time, every time, in the required currency.