Pensions in Croatia will be indexed on 1 January 2027, as every year, but the percentage is not yet known. It will depend on price and wage growth in the second half of 2026, and the Croatian Pension Insurance Institute (HZMO) must decide by the end of February 2027. Since 1 July 2026 the current pension value has been 15.64 euros, and the average pension, excluding those paid under international agreements, is 763.94 euros.
This guide is for pensioners and those about to retire. We cover seven things you need to know: how and when pensions are indexed, how much the average and minimum pension are, what happens with the annual bonus, survivor's pensions and working while retired, and what the proposed abolition of pension tax would bring. Amounts not yet known are clearly marked, and we will update them as soon as they are published.
Pensions 2027 - quick overview
| # | What | Amount or rule | Status |
|---|---|---|---|
| 1 | Indexation 1 Jan 2027 | percentage not yet known | decision by end of February 2027 |
| 2 | Formula | 85% wage growth + 15% price growth (or the reverse) | Pension Insurance Act, Art. 91 |
| 3 | Average pension | 763.94 EUR | HZMO, August 2026 |
| 4 | Minimum pension | 16.58 EUR per year of service | from 1 Jul 2026 |
| 5 | Annual bonus | 6 EUR per year of service (2025) | 2026 amount by 31 Oct |
| 6 | National allowance | 160.22 EUR | 2026 |
| 7 | Pension tax | abolition for the lower bracket | proposal, not yet passed |
Details on each item follow below.
1. Pension indexation on 1 January 2027
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Pensions in Croatia are indexed twice a year, on 1 January and 1 July. For January 2027, the second half of 2026 (July to December) is compared with the first half of 2026, so the percentage cannot be known before the December price and wage data arrive. The HZMO Management Board must decide within two months of the end of the half-year, so by the end of February 2027.
As of 8 October 2026, neither HZMO nor the labour ministry has published an estimate. If 2026 practice is repeated, the increased pensions will be paid in April, with the March pension, plus the difference for January and February. At that time, according to the decision in the Official Gazette, the current pension value from 1 January 2026 rose by 2.68 percent, to 14.84 euros.
| Indexation | Increase | Current value | Payment |
|---|---|---|---|
| 1 Jan 2026 | +2.68% | 14.84 EUR | April 2026 (with arrears) |
| 1 Jul 2026 | +5.40% | 15.64 EUR | September 2026 (with arrears) |
| 1 Jan 2027 | not known | not known | decision by end of February 2027 |
Pros: pensions rise twice a year, and the difference for past months is paid retroactively
Cons: the January increase only arrives in spring, and the percentage is not known in advance
Our opinion: Do not plan bigger expenses based on guesses about the percentage. The real figure comes in February, and the money in April.
2. How indexation is calculated: the 85:15 formula
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Since 1 July 2025, pensions have been indexed using the new formula in Article 91 of the Pension Insurance Act. The consumer price growth rate and the average gross wage growth rate are added together. If prices make up 50 percent or less of that sum, pensions rise by 85 percent of wage growth and 15 percent of price growth. If prices make up more, the reverse applies: 85 percent prices and 15 percent wages.
Until 30 June 2025 the ratio was 70:30. The new formula always gives the larger of the two indicators the bigger weight, so pensions track either wage growth or inflation more closely, depending on which is rising faster. If the calculated rate is zero or negative, pensions are not indexed, but they are not cut either. For July 2026, according to the Croatian government, the 85 percent wages and 15 percent prices ratio was applied.
| Rule | Detail |
|---|---|
| Dates | 1 January and 1 July |
| Basis | previous half-year vs the half-year before it |
| Price share 50% or less | 85% wages + 15% prices |
| Price share over 50% | 85% prices + 15% wages |
| Zero or negative rate | no indexation |
| Before 1 Jul 2025 | 70:30 ratio |
Pros: the formula automatically weights whatever is rising faster
Cons: the percentage is only known once data is published, so it is hard to plan ahead
Our opinion: If wages keep rising faster than prices, as in 2026, pensions will mostly track wages. That is better for pensioners than the old 70:30 formula.
3. Average pension: 764 euros
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According to HZMO's basic data for August 2026, the first month with a current value of 15.64 euros, the average pension excluding those paid under international agreements is 763.94 euros. That is 49.6 percent of the average net wage of 1,540 euros. There were 1,234,959 pension recipients in total, and the average for all recipients, including pro-rata pensions paid under international agreements, is 675.66 euros.
The differences between types of pension are large. Pensioners with 40 or more years of service have an average old-age pension of 1,075.72 euros, almost 70 percent of the average net wage. The average disability pension is 557.09 euros, and the average survivor's pension 573.02 euros.
| Type of pension (August 2026) | Average | Share of net wage |
|---|---|---|
| Average excluding international agreements | 763.94 EUR | 49.6% |
| Old-age (total) | 755.65 EUR | 49.1% |
| Old-age with 40+ years of service | 1,075.72 EUR | 69.9% |
| Early old-age | 633.20 EUR | - |
| Disability | 557.09 EUR | - |
| Survivor's | 573.02 EUR | - |
Pros: a long career clearly pays off, and the average rose after the July indexation
Cons: the average pension is still only half the average wage
Our opinion: The average old-age pension with 40 or more years of service is about 320 euros higher than the average for all old-age pensions. If you can work a few more years, it pays off. Alongside the state pension, see how to choose a pension fund.
4. Minimum pension: 16.58 euros per year of service
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The minimum pension in Croatia is calculated per year of service and equals 106 percent of the current pension value. From 1 July 2026 it is 16.58 euros per year of service. A pensioner with 30 years of service therefore receives at least 497.40 euros, and with 40 years 663.20 euros, before the starting and pension factors are applied.
The minimum pension is received by 284,213 recipients, with an average of 502.19 euros. The rule is simple: if the pension calculated from personal points is lower than the minimum, the pensioner gets the minimum. The minimum pension is also indexed twice a year, together with the current value.
| Years of service | Minimum pension (from 1 Jul 2026) |
|---|---|
| 15 | 248.70 EUR |
| 20 | 331.60 EUR |
| 25 | 414.50 EUR |
| 30 | 497.40 EUR |
| 35 | 580.30 EUR |
| 40 | 663.20 EUR |
Pros: protects pensioners who had low wages during their working life
Cons: the amount is low for a short career, and on average the minimum pension is only a third of the net wage
Our opinion: If you have few years of service, check whether you are also entitled to the national allowance for older people, covered below.
5. Annual bonus: decision by 31 October
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The annual bonus, often called the "13th pension", is paid in December. Under Article 92 of the Pension Insurance Act, it is calculated by multiplying full years of service by the amount per year, and for pensioners whose pension is not based on years of service, 15 years are counted. The government sets the amount each year, by 31 October at the latest.
For 2025 the bonus was 6 euros per year of service (NN 135/2025), so a pensioner with 30 years of service received 180 euros. The 2026 decision has not yet been made. The Croatian Pensioners' Union (SUH) is asking for about 13 euros per year, while around 8 euros is mentioned unofficially, reports Moje vrijeme. We will add the amount as soon as the government decides.
| Years of service | Bonus for 2025 (6 EUR/year) |
|---|---|
| 15 | 90 EUR |
| 25 | 150 EUR |
| 30 | 180 EUR |
| 40 | 240 EUR |
| Bonus for 2026 | government decision by 31 Oct 2026 |
Pros: all pensioners receive the bonus, and a longer career brings more
Cons: the amount is not fixed by law and depends on a government decision each year
Our opinion: The bonus is not guaranteed income until the government confirms it. In your December budget, count on last year's amount, and anything more is a pleasant surprise.
6. Survivor's pension and national allowance
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A survivor's pension goes to the family members of a deceased insured person or pensioner. Its amount depends on the number of members: the pension factor is 0.77 for one member, 0.88 for two, 1.0 for three and 1.1 for four or more. A widow or widower with their own pension can also receive 27 percent of the survivor's pension on top of it. There are 113,223 such recipients, with an average total pension of 772.08 euros.
For older people without a pension and with very low income, there is the national allowance for older people. In 2026 it is 160.22 euros a month. It is available to Croatian citizens aged 65 or over without a pension, with at least 10 years of continuous residence in Croatia, if income per household member does not exceed 320.44 euros. The allowance is indexed on 1 January in line with the previous year's price growth.
| Detail | Value |
|---|---|
| Survivor's, factor for 1 member | 0.77 |
| Survivor's, factor for 2 / 3 / 4+ members | 0.88 / 1.0 / 1.1 |
| Share of survivor's alongside own pension | 27% |
| National allowance 2026 | 160.22 EUR |
| Allowance conditions | citizenship, 65+, no pension, 10 years' residence, income up to 320.44 EUR per member |
Pros: part of a survivor's pension can be received alongside your own, and the national allowance protects those without a pension
Cons: the national allowance is low and the income test is strict
Our opinion: After a spouse dies, check with HZMO whether your own pension plus 27 percent of the survivor's pension, or the survivor's pension alone, pays more. The choice is yours, so use it.
7. Pension tax and working while retired
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In 2026 pensioners have a personal allowance of 600 euros and pay half of the calculated income tax, according to the Tax Administration. In September 2026 the government proposed to parliament that from 1 January 2027 pensioners pay no tax on the part of their pension taxed at the lower rate, that is up to 5,000 euros a month. This would affect about 541,000 pensioners. The proposal has not yet been passed, so treat it as an announcement.
Working while retired is allowed up to half of full-time hours, with the full pension paid. Since 1 January 2026, pensioners over 65 who work full-time or run a business receive half of their pension, while for those under 65 working full-time, pension payments are suspended. In 2026 disability pensions also rose by 10 percent, and the reduction of early retirement pensions was abolished at age 70.
| Rule | Detail |
|---|---|
| Pensioner personal allowance | 600 EUR |
| Tax 2026 | 50% of calculated tax is paid |
| Tax 2027 (proposal) | no tax up to 5,000 EUR, not yet passed |
| Working up to half-time | full pension |
| Full-time, 65+ | 50% of pension (from 2026) |
| Full-time, under 65 | payments suspended |
Pros: the proposal would further raise net pensions, and working up to half-time does not reduce the pension
Cons: the tax abolition is not law yet, and full-time work before 65 means losing the pension
Our opinion: Before taking a job while retired, check with HZMO how it will affect your payments. For tax reliefs, also see our tax refund tips.
Conclusion: what pensions in 2027 bring pensioners
| If you are | What you need to know |
|---|---|
| A pensioner with an average pension | indexation in January, percentage in February, payment probably in April |
| A minimum pension recipient | 16.58 EUR per year of service, rises with every indexation |
| A working pensioner | up to half-time full pension, 65+ full-time 50% |
| A pensioner who pays tax | possible tax abolition from 2027 if parliament passes the proposal |
| A future pensioner | every year of service raises both the pension and the annual bonus |
Pensions in Croatia will rise from 1 January 2027, and we will know the exact percentage by the end of February. Until then, the current value of 15.64 euros applies, with an average pension of 763.94 euros and a minimum of 16.58 euros per year of service. We will update this guide when the government decides on the 2026 annual bonus, when parliament votes on the tax change, and when HZMO publishes the January indexation. If you are still working, also see voluntary pension funds, as the third pillar can make up part of the gap to your wage.
Frequently asked questions
How much will pensions rise in January 2027?
The percentage is not yet known. It depends on price and wage growth from July to December 2026 compared with the first half of the year. HZMO must decide by the end of February 2027, and if 2026 practice is repeated, the increased pensions with arrears will be paid in April.
What is the average pension in Croatia?
According to HZMO for August 2026, the average pension excluding those under international agreements is 763.94 euros, which is 49.6 percent of the average net wage. Pensioners with 40 or more years of service have an average old-age pension of 1,075.72 euros.
What is the minimum pension?
From 1 July 2026, the minimum pension is 16.58 euros per year of service. For 30 years of service that is 497.40 euros, and for 40 years 663.20 euros. More than 284,000 pensioners receive the minimum pension.
When is the annual bonus paid and how much is it?
The annual bonus is paid in December. For 2025 it was 6 euros per year of service. The government must set the 2026 amount by 31 October 2026, and until then there is only unofficial speculation.
Will pension tax be abolished?
In September 2026 the government proposed that from 2027 pensioners pay no tax on the part of their pension up to 5,000 euros a month. The proposal covers about 541,000 pensioners, but it has not yet been passed by parliament.
How we researched
We took the data from HZMO's basic statistics for August 2026, decisions on the current pension value in the Official Gazette, the Pension Insurance Act and the National Allowance for Older People Act, and from government and Tax Administration websites. Announcements and proposals come from official statements and reliable media and are clearly marked. Information is as of 8 October 2026. This guide is not legal advice for your specific case; for your own pension calculation, contact HZMO.
Sources
- HZMO - basic data, September 2026 (for August)
- Pension Insurance Act (zakon.hr)
- Croatian government - current pension value from 1 July 2026 up 5.40%
- Official Gazette - decision on the current pension value from 1 January 2026
- Croatian government - tax system changes
- Tax Administration - pensioners
- National Allowance for Older People Act
Related articles:
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- Top 7 Voluntary Pension Funds in Croatia 2026
- Minimum Wage in Croatia 2027: Gross, Net and What Changes
- Top 7 Tax Refund Tips for Croatia 2026
- How to Best Budget Your Money for Life
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