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 –
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|
|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.
For beneficiaries who have qualified for pension benefit in the period from 1 January to 31 December 2019, using a reduction of the initial factor by 0.3% for every month of earlier retirement, of its own motion, the Croatian Institute for Pension Insurance will recalculate early old-age pension benefits as of 1 January 2020 with a new initial factor, or by a reduction by 0.2% for every month of earlier retirement, without adopting a decision.
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.
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 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 increases for the insured who first acquires the right to a pension after completing the age requirement for the right to old-age pension and who has a pensionable service of 35 years by 0,34% for each month after the age prescribed for the acquisition of the right to old-age pension but for 5 years at the most,
- An early old-age pension is reduced for the insured by 0,2% for each month of early retirement before the insured person meets the age requirement prescribed for the acquisition of the right to an old-age pension.
The average value point is calculated on the basis of salaries earned over 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 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.
As of 1 January 2023, the initial factor for determining the old-age pension for an insured person who acquires the right to a pension for the first time after reaching the age prescribed for acquiring the right to an old-age pension and has 35 years of pensionable service has been increased from 0.34% to 0.45%, per month for each month after reaching the age prescribed for acquiring the right to that pension, i.e. a maximum of 27%.
In order to determine the old-age pension for a long-term insured person who receives a pension for the first time after reaching the age of 60 and has 41 years of pensionable service in the effective duration, the initial factor is increased by 0.15% per month for each month after reaching the prescribed age for acquiring the right to that pension, and after reaching the prescribed age for acquiring the right to an old-age pension, it increases by 0.45%. The increase cannot amount to more than 27%.
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.
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 under the regulations on incentives for employment and other regulations
- Beneficiaries who receive other income or perform other activity,
- Beneficiaries of a survivor’s pension who are employed up to a half of full time while exercising the right.
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:
Your old-age pension will be paid regardless of where you reside (in which contracting state).