Croatian Pensioners on the Edge: Is This a Real Pension Increase or Just Another Tax Trap?
July in Croatia brings what sounds like good news – pensioners will receive a pension increase of about 6%. But wait a minute! Is this really a reason to celebrate or just another farce?
Pension Increase – How Much and For Whom?
The Croatian Pension Insurance Institute (HZMO) announced that starting July 8, pension payments for June will begin, with an adjustment of about 6%. The average pension in Croatia currently stands at around 3,015 kuna (about 400 euros), which is only 36% of the average salary of about 8,400 kuna (1,120 euros). So pensioners still live on less than half the average worker’s salary.
But There’s a Tax…
Sounds good, but due to this increase, some pensioners will have to pay tax on their pension! Yes, you read that right. The pension increase may cause pensioners who were previously exempt from tax to now have to give part of their modest income to the state. So instead of getting better, their situation might get worse.
Who’s Most Affected?
More than a million pensioners receive pensions in Croatia, including those covered by international agreements and privileged pensions. The lowest pensions go to those who worked the hardest and earned the least – their pension is only 28% of the average salary. Every fourth pensioner receives less than 2,000 kuna (about 270 euros). For them, any increase might just be an illusion, as taxes will eat up part of that increase.
Pension Reform – Salvation or Bigger Problem?
The new pension insurance law in Croatia foresees reforms aimed at stabilizing the system, but many wonder if it will truly help pensioners or just make their situation harder. A 6% pension increase is good, but if taxes eat up part of that money, the question is how much pensioners will actually have in their pockets.
What Do Experts Say?
Economists warn that the average pension in Croatia is still low compared to the average salary, and much more than a 6% increase is needed for pensioners to live decently. Also, the tax system should be fair and not punish those who worked their whole lives and now deserve a peaceful retirement.
Conclusion
Croatian pensioners are on edge. On one hand, they get a pension increase that sounds like good news. On the other, they fear taxes will eat up part of that money, leaving them with even less than before. Is this a real increase or just another tax trap? What do you think? Is the state finally ready to fairly reward its pensioners or will it continue treating them like second-class citizens?
If you’re a pensioner or have pensioners in your family, check your account this July and see if the increase is real or just an illusion. And if you have a good or bad pension story, feel free to share it in the comments – let’s discuss this topic that affects us all!
Source: Blic, Mirovina.hr, Poslovni dnevnik
Remember, a pension is not just a number – it’s a standard of living and dignity.
