Zagreb - The Sabor on Friday adopted a new Pension Insurance Act, which is aimed at increasing the average pension from the current €645 to at least €800 by the end of the government's term, and which introduces a new pension adjustment formula and a permanent annual bonus, and abolishes early retirement penalties.
The law was passed with 82 votes in favour and 34 abstentions.
The new Pension Insurance Act introduces several changes – a new pension adjustment formula with a ratio of 85 to 15 in favour of the more favourable factor. A permanent annual pension bonus, colloquially referred to as the 13th pension, is being introduced. This bonus is tied to years of service, and the amount, to be determined by the government in October, will be multiplied by the number of years of service.
Mothers will receive 12 months of credited service for each child born or adopted, instead of the current six months, which represents an approximate three percent increase per child.
As of 1 January 2026, early retirement penalties will be abolished for those who turn 70, increasing their pensions by an average of around €60.
Pensioners will be allowed to work full-time while receiving 50% of their pension, and craftspeople will be allowed to earn a 50% pension from the age of 65 without stopping work.
Recipients of disability pensions will be allowed to work up to three and a half hours a day, which will make their status equal to that of war veterans who retired under the Law on Croatian Homeland War Veterans and their family members who already have this right.
Taking into account the importance and role of special categories of insured persons - parent caregivers and caregivers under social welfare regulations, foster parents and those who assist Croatian war invalids - they will also be allowed to receive half a pension at the age of 65 while retaining their status.
To encourage those who can and want to remain in the workforce longer, the law also redefines the bonus for late retirement after the prescribed retirement age so that it depends solely on age, not on the length of pensionable service.
The law also intervenes in the minimum pensions, which will increase by about three percent, and in disability pensions, which will increase by an average of €75.
A government amendment was adopted allowing 12 months of additional credited service to traditional and kinship foster carers who have provided foster care for more than ten years when claiming a pension.
The new law comes into force on 1 July.