The right to an old-age pension is acquired by an insured person who has reached 65 years of age, provided that he or she has completed 15 years of qualifying periods.
Insured persons – women in the period from 2014 to 2029 are entitled to an old-age pension at a lower age. In 2014, they could retire at the age of 61 (with the condition of 15 years of service), where the age requirement for each calendar year increased by 3 months until 2029.
By way of exception, raising the retirement age by 4 months every year was stipulated by the law that was in force from 1 January to 31 December 2019. However, the amendments to the law that enter into force on 1 January 2020 introduce a transitional period for women under more favourable conditions again. Raising of the retirement age is reduced from 4 to 3 months every year, with an exceptional raise by 2 months in 2020 in relation to 2019.
| YEAR OF GRANTING THE PENSION RIGHTS | PRESCRIBED AGE
– WOMEN – |
|
| years | months | |
| 2014 | 61 | 0 |
| 2015 | 61 | 3 |
| 2016 | 61 | 6 |
| 2017 | 61 | 9 |
| 2018 | 62 | 0 |
| 2019 | 62 | 4 |
| 2020 | 62 | 6 |
| 2021 | 62 | 9 |
| 2022 | 63 | 0 |
| 2023 | 63 | 3 |
| 2024 | 63 | 6 |
| 2025 | 63 | 9 |
| 2026 | 64 | 0 |
| 2027 | 64 | 3 |
| 2028 | 64 | 6 |
| 2029 | 64 | 9 |
As of 1 January 2030, women and men can exercise the right to old-age pension benefit under the same conditions, having reached the age of 65 and 15 years of pensionable service, regardless of the gender of the insured person.
Early retirement pension
The right to an early retirement pension is acquired by an insured person who has reached 60 years of age and completed 35 years of qualifying periods.
In the transitional period from 2014 to 2029, women are entitled to an early old-age pension under more favourable conditions – at a lower age and lower pensionable service, so that from January 1, 2019, to December 31, 2028, the age and pensionable service are gradually increased by 3 months each year.
By way of exception, raising the retirement age and qualifying period by 4 months every year was stipulated by the law that was in force from 1 January to 31 December 2019. However, the amendments to the law that enter into force on 1 January 2020 introduce a transitional period for women under more favourable conditions again. Raising of the retirement age and qualifying period is reduced from 4 to 3 months every year, with an exceptional raise by 2 months in 2020 in relation to 2019.
| EARLY RETIREMENT PENSION for women | ||
| YEAR | AGE | QUALIFYING PERIODS |
| 2014 | 56 years | 31 years |
| 2015 | 56 years and 3 mjeseca | 31 years and 3 months |
| 2016 | 56 years and 6 months | 31 years and 6 months |
| 2017 | 56 years and 9 months | 31 years and 9 months |
| 2018 | 57 years | 32 years |
| 2019 | 57 years and 4 months | 32 years and 4 months |
| 2020 | 57 years and 6 months | 32 years and 6 months |
| 2021 | 57 years and 9 months | 32 years and 9 months |
| 2022 | 58 years | 33 years |
| 2023 | 58 years and 3 months | 33 years and 3 months |
| 2024 | 58 years and 6 months | 33 years and 6 months |
| 2025 | 58 years and 9 months | 33 years and 9 months |
| 2026 | 59 years | 34 years |
| 2027 | 59 years and 3 months | 34 years and 3 months |
| 2028 | 59 years and 6 months | 34 years and 6 months |
| 2029 | 59 years and 9 months | 34 years and 9 months |
The above conditions are in force until 31 December 2029. As of 1 January 2030, men and women acquire the right to early old-age pension benefit under the same conditions, having reached the age of 60 and 35 years of pensionable service, irrespective of the gender of the insured person.
The amount of the pension is permanently reduced for each calendar month prior to the realization of the entitlement up to the years of life of insured person prescribed for the acquisition of the right to an old-age pension, linearly by 0,2% for each month of early retirement, i.e. 2.4% per year to a maximum of 12% for a maximum of 5 years prior to retirement.
An old-age pension for a long-term insured person (without deduction) is acquired by the insured person when they reach the age of 60 and 41 years of pensionable service in effective duration. Early retirement pension due to employer’s bankruptcy shall be acquired by an insured person who, following the termination of insurance due to bankruptcy immediately preceding the fulfilment of conditions for obtaining the right to pension, was registered continuously for at least two years as an unemployed person with the competent employment service.
The right to an old-age pension and early retirement pension is acquired by an insured person from the day on which all conditions for pension were fulfilled, whereby the right to pension may be realised after the termination of insurance. Exceptionally, an insured person who continued to work up to half of the full time on the basis of a modified contract, may obtain the right to an old-age pension without terminating the employment.
Overview of conditions for obtaining the right to pension
Minimum pension
Insured persons whose pension is determined on the basis of salaries or insurance bases lower than the so-called minimum pension, are entitled to a minimum pension. As of 1 July 2019, the minimum pension is calculated by multiplying every full year of pensionable service with the current pension amount on the day of calculating the pension, using an appropriate initial factor and pension factor, and may be calculated as old-age pension, early old-age pension, invalid pension and family pension.
The minimum pension as of 1 January 2023 is determined for each year of pensionable service in the amount of 103% of the actual value of the pension on the date of determining the pension.
Determination of pensions
The pension amount is calculated by multiplying personal points, the pension factor, and the actual value of the pension. The pension factor is determined by the type of pension that is being realized, and the current value of the pension is determined by the Governing Board of the Croatian Pension Insurance Institute (hereinafter: the Institute), based on the data from the Croatian Bureau of Statistics, no later than two months after the end of every half-year term.
Personal points are calculated by multiplying the average value point with achieved qualifying periods and the initial factor. The initial factor affects the pension amount in the case of old-age pension and early retirement pension in the following manner:
- For an insured person who first acquires the right to a pension after meeting the age requirement for old-age pension and who has a pensionable service of 35 years, their old-age pension increases by 0.45% for each month after the age prescribed for acquiring the right to old-age pension, but for a maximum of 5 years;
- For an insured person who took an early retirement pension, their early retirement pension decreases by 0.2% for every month of earlier retirement before reaching the age requirement for acquiring the right to an old-age pension.
The average value point is calculated on the basis of salaries earned during the entire working life, in relation to the average annual salary in the Republic of Croatia.
The salary earned in the year in which the pension entitlement is exercised is not taken into account when determining the value points for calculating the pension. For that year, the average value points are taken into account, in proportion to the insurance period in that year.
With each pension, and on the basis of a special act, a pension supplement is calculated and paid.
As of 1 January 2023, for an insured person who first acquires the right to pension after meeting the age requirement for an old-age pension and who has a pensionable service of 35 years, the initial factor for determining their old-age pension increased from 0.34% to 0.45% for each month after the age prescribed for acquiring the right to that old-age pension, but by no more than 27% in total. The same initial factor is applied for calculating the survivor’s pension after the death of that insured person who died after having reached the age requirement for an old-age pension and who had completed 35 years of pensionable service, but who had not exercised their right to a pension.
The initial factor for determining the old-age pension of an insured person who acquired the right to a pension for the first time and who had reached 41 years of pensionable service in effective duration before reaching the age requirement for an old-age pension under the Pension Insurance Act, has also been increased. This initial factor increases by 0.15% per month for each month after reaching the age requirement for an old-age pension for a long-term insured person, and after reaching the age requirement for an old-age pension, the initial factor increases by 0.45% per month and can amount to a maximum of 1.27. The same initial factor is applied for calculating the survivor’s pension after the death of that insured person who died after having reached 60 years of age and who had completed 41 years of insurance periods in effective duration, but who had not exercised their right to a pension.
For determining the old-age pension of a long-term insured person who first acquired a pension after reaching 60 years of age, and who had completed 41 years of insurance periods in effective duration, the initial factor increases by 0.15% per month for each month after reaching the age requirement for acquiring the right to that pension, for no more than five years, i.e., the increase may not amount to more than 27%. The same initial factor is applied for calculating the survivor’s pension after the death of that insured person who died after having reached 60 years of age and who had completed 41 years of insurance periods in effective duration, but who had not exercised their right to a pension.
Indexation of pensions
By determining the actual value of pension, pensions are adjusted twice a year in relation to economic trends in the Republic of Croatia.
The AVM adjustment rate, applied starting from 1 January 2015, is determined by the variable ratio of the consumer price index and gross salaries of all employees in the Republic of Croatia in the previous year, compared to the year preceding it (70:30, 50: 50 or 30:70, whichever is preferred). From July 1, 2019, the pension is aligned as follows: from January 1 to July 1 each calendar year according to the 70:30 i.e. 30:70 model.
Pension payment
Pensions and retirement benefits are fixed in monthly instalments and paid retroactively for each previous month.
During the period of employment or self-employment, the payment of pension is suspended and the status of an insured person is established, and after a minimum of one year of insurance, a pension beneficiary may, under certain conditions, request re-determination of the pension, followed by a formal decision.
The following beneficiaries are exceptions:
- Beneficiaries of an old-age pension who work up to half of the full time,
- Beneficiaries of pensions according to special regulations with work up to half full time or full time,
- Old-age pension beneficiaries for a long-term insured person with work up to half of full-time,
- Early old-age pension beneficiaries with work up to half of full-time,
- Beneficiaries of a disability pension due to occupational disability to work (according to previous regulations),
- Beneficiaries of a disability pension due to partial loss or working capacity,
- Beneficiaries who perform seasonal jobs in agriculture, according to the regulation governing the labour market and other regulations,
- Beneficiaries who receive other income or perform other activity.
The Institute may suspend the payment of pensions and other retirement benefits if a beneficiary does not submit any information or document requested by the Institute, which cannot be obtained by official means.
Your right to an old-age pension pursuant to international agreements on social insurance
If you were insured in one or more countries with which the Republic of Croatia applies bilateral agreements on social insurance, the procedure for obtaining the right to pension is initiated by submitting an application to the pension insurance holder in the contracting state in which you have residence or in the contracting state of last insurance. If you have never been insured in your country of residence, your application will be forwarded to the contracting state of last insurance. An application submitted in one contracting state shall be deemed as an application submitted in all contracting states in which you have completed your insurance periods.
You will be entitled to pension in all contracting states in which you have been insured for at least twelve months, and if you satisfy other conditions under the national regulations of those states, for example, mandatory age condition.
All insurance periods that you have completed in other contracting states, if necessary, will be taken into account when you reach the necessary years of age for an old-age pension, and the amount of pension from each contracting state depends on the length of the period of insurance or residence in that state and national regulations of each contracting state.
Besides the request specified above under 1.1. that can be found on the website of the Croatian Pension Insurance Institute under the forms section, certain forms must also be filled out with the requests for recognition of the right to a foreign pension (additional request form for the old-age pension under 1.5.) for the following countries:
– Canada
Your old-age pension will be paid regardless of where you reside (in which contracting state).
