OLD-AGE PENSION

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 exercise the right to an old-age pension at a lower age. In 2014, they can obtain a pension at the age of 61 (with the condition of completed 15 years of qualifying periods), whereby the condition of age is increased for 3 months every calendar year until 2029 (transitional period).

 

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 3
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

 

These conditions stay in force until 31 December 2030. In the period from 1 January 2031, the age condition is increased by three months each year until 31 December 2037, and from 1 January 2038 the right to an old-age pension shall be acquired by an insured person at the age of 67, regardless of gender.

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 retirement pension under more favourable conditions at lower age and with lower qualifying periods:

 

EARLY RETIREMENT PENSION for women
YEAR AGE QUALIFYING PERIODS
2014 56 years 31 years
2015 56 years and 3 months 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 3 months 32 years and 3 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

 

These conditions stay in force until 31 December 2030. In the period from 1 January 2031, the age condition is increased by three months each year until 31 December 2037. The right to early retirement pension from 1 January 2038 is acquired by an insured person at the age of 62, regardless of gender.

 

The amount of the pension is permanently reduced for each calendar month of earlier realisation of the right, until reaching the age of insured persons prescribed for acquiring the right to an old-age pension (65 years), namely:

 

  • with reached 35 years of qualifying periods – 0.34% per month,
  • with reached 36 years of qualifying periods – 0.32% per month,
  • with reached 37 years of qualifying periods – 0.30% per month,
  • with reached 38 years of qualifying periods – 0.25% per month,
  • with reached 39 years of qualifying periods – 0.15% per month,
  • with reached 40 years of qualifying periods – 0.10% per month.

 

The right to early retirement pension due to long-term insurance shall be acquired by an insured person at the age of 60, with 41 years of insurance periods, and the right to 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. Minimum pension is defined for each year of qualifying periods in the amount of 0.825% of the average gross salary.

 

Determination of pensions

The amount of pension is calculated by multiplying personal points, pension factor and the actual value of pension. The pension factor is determined by the type of pension to be realised, and the actual value of the pension is determined by the Governing Board of the Croatian Pension Insurance Institute (hereinafter: the Institute), based on the data of the Croatian Bureau of Statistics, no later than two months after the end of each half-year.

Personal points are calculated by multiplying the average value point with achieved qualifying periods and the initial factor. The initial factor affects the amount of pension in case of old-age pensions and early retirement pensions, so that:

  • An old-age pension is increased to insured persons who are granted pension for the first time after the age of 65, and have 35 years of qualifying periods, by 0.15% for each month after reaching the prescribed age for acquiring the right to an old-age pension, but for no longer than 5 years,
  • An early retirement pension is decreased to insured persons by 0.10% – 0.34%, depending on qualifying periods and the number of months of earlier acquirement of the pension in relation to the prescribed age for obtaining the old-age pension (from 9% to 20.4%).

The average value point is calculated on the basis of salaries earned over the entire working life in relation to the average salary in the Republic of Croatia.

The salary earned in the year in which the pension entitlement is exercised is not used for the determination of value points when calculating the pension, but for that year the average value points are taken in proportion to the insurance period in that year.

With each pension, and based on the special act, a pension supplement is calculated and paid in the amount of 27% of the 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).

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 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 under the regulations on incentives for employment, and
  • Beneficiaries who receive other income.

 

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.

More info

 

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.

1.6a. Application for determination of insurance periods completed abroad

Annexes to applications for granting the right to foreign pensions (to be completed with the application under no. 1.1) for:

– Swiss Confederation

– Australia

– Canada

 

Your old-age pension will be paid regardless of where you reside (in which contracting state).

More info

QUESTIONS AND ANSWERS

The procedure is initiated by submitting an application to the regional service / local office / branch office of the Croatian Pension Insurance Institute according to the permanent or temporary place of residence of the person submitting the application. If the applicant’s place of residence is located abroad, the regional service or office of the last insurance is competent.

Application for granting the right to old-age pension and early retirement pension may not be filed earlier than one month before the termination of the insurance (meeting the conditions).

If an application is submitted within six months from the termination of insurance, the insured person is entitled to a pension from the first day of the following month after the termination of insurance. If more than six months has passed after the termination of insurance, the insured person has the right to a pension from the first day of the following month after the submission of the application, and for six months retroactively.

In order to ensure quicker procedure for obtaining the right to pension, the so-called pre-completion process may also be initiated at the Institute. Future pensioners are allowed to inform the Institute about their intention to go to old-age or early retirement twelve months before applying for a retirement pension, in order to obtain their right in a quicker way.

As the beneficiary of an old-age pension you can occasionally work based on employment contract, and this will not result in loss of your pension rights or termination of pension payment during such employment.  Thus, you can simultaneously receive your pension and work on the basis of an employment contract.

The Republic of Croatia has signed an agreement on social insurance with Bosnia and Herzegovina. Since you have completed 10 years of insurance in Bosnia and Herzegovina, and you will be entitled to an old-age pension in the Republic of Croatia after 2 years have passed (when you reach the age of 65), please contact the branch office of the Institute, according to your place of residence, and submit an application for a preliminary determination of your qualifying period completed in Bosnia and Herzegovina in order to obtain your pension rights as quickly as possible after you satisfy the prescribed conditions. The application form is available at regional offices and branch offices of the Institute and on the Institute’s web site.

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