Pension System Revolution: What Does the New Law Bring Starting July 1?
The Croatian Parliament passed a new pension insurance law with 82 votes in favor and 34 abstentions. The law will take effect on July 1 and brings significant changes for pensioners.
New Pension Calculation Formula Pensions will now be calculated using an 85 to 15 formula, meaning a more favorable factor will be weighted more. This means pensions will be fairer and, in some cases, higher.
13th Pension – Permanent Annual Bonus The so-called 13th pension is introduced, a permanent annual bonus calculated based on years of service. The exact amount is not yet known but will be determined by the government and is expected to be significant for many pensioners.
More Service Credit for Mothers and Foster Parents Mothers will receive 12 months of service credit for each biological or adopted child instead of the previous 6 months. Traditional kinship foster parents who have provided foster care for over 10 years will receive an additional 12 months of service credit when claiming pension rights.
Half Pension for Caregiving Parents and Foster Parents Special categories of insured persons, such as caregiving parents and foster parents assisting Croatian war invalids, will be entitled to half a pension at age 65 while retaining their caregiving status.
Work and Pension – New Rules Pensioners will be able to work full-time and keep half of their pension. Craftsmen will have the right to half a pension after age 65 if they stop working. Pensions will increase if someone continues working beyond the prescribed retirement age, with growth depending on age rather than service years.
Work for Disability Pension Recipients Recipients of disability pensions will be allowed to work three and a half hours per day, equalizing them with Croatian war veterans who already have this option.
Abolished Penalties for Early Retirement From January 1 next year, penalties for early retirement at age 70 will be abolished, increasing pensions by an average of about 60 euros. The lowest pensions will rise by about 3%, and disability pensions by about 75 euros.
Goal: Minimum Pension of 700 Euros The government aims to raise the minimum pension to 700 euros by the end of its term, significantly improving pensioners’ living standards.
What Do Critics Say? Although the law brings many positive changes, the opposition and unions express dissatisfaction, claiming that the pensioners’ standard of living has deteriorated over the past decade and inflation has eroded the real value of pensions. Some amendments seeking additional rights and better pension indexation with wage and price growth were also rejected.
Conclusion This law is a big step forward for Croatian pensioners. More rights, higher pensions, and the ability to work without losing pension benefits sound like a dream finally coming true. But, as always, the question remains – will all this really be implemented properly?
If you have an opinion on these changes, or you already see pensions going up, or maybe you think this is just another political game, drop a comment below. Let the people’s voice be heard!
Provocative headline: “Finally! 13th Pension and Higher Benefits – Will Pensioners Really Breathe Easier?”
Slug: “pension-system-revolution-13th-pension-higher-benefits-rights-caregiving-parents”
