The service is part of the council’s upgraded waste contract, which will begin on April 1.
The contract will also provide better street cleaning and an improved waste collection service for flats above shops.
The changes are part of executive mayor Jason Perry’s business plan to make the borough’s streets cleaner and restore pride.
The new contract will keep the alternate weekly collections for waste and recycling to households, but will introduce new ways of working to improve the service.
From the start of the new contract, residents will be able to dispose of non-hazardous clinical hygiene waste in regular black bin bags and general waste bins.
This means that residents will no longer have to leave yellow waste sacks outside their property.
Residents with a disability or health condition that generates a lot of hygiene waste may be eligible for a larger bin, and the council is contacting them directly.
Collections for flats above shops will increase from weekly to a twice-weekly service, with a new night-time collection service.
A new, more responsive and flexible street cleaning service will also be introduced.
The council has also strengthened contract management, with regular reviews to ensure residents are getting value for money.
The new contract includes local employment opportunities for Croydon residents through good quality apprenticeships, and a pledge to employ those that are long-term unemployed.
Jason Perry, executive mayor of Croydon, said: “We’ve made some important changes to this new contract and partnership with Veolia, to make sure it meets the needs of Croydon residents.
“Our streets will be tidier, and residents will notice a better service; this new contract is part of our plan to restore pride for those who live and work in Croydon.
“I want us to make sure the contract delivers value for money for Croydon, and that’s why we will be stepping up contract management and making sure there are continuous service improvements over the life of the contract.
“This monitoring will ensure there is accountability for residents and the council and should issues arise, the contractor will be held to account.”
Pascal Hauret, managing director, municipal, Veolia UK, said: “We are thrilled to be continuing our partnership with Croydon Council as their environmental services provider.
“We look forward to building on the successes of the previous eight years whilst implementing new initiatives to improve recycling rates and street cleanliness in the borough.
“Together with Croydon Council, we will continue to work towards a cleaner, greener future for the borough that will benefit all residents.”