August the 28th, 2026 – Croatian pensions are set to increase once again following the latest adjustments, with differences set to be paid for July 2026.
The Croatian Pension Insurance Institute (HZMO) has announced that at the recently held 26th session of the Management Board a Decision was adopted on the current value of the pension (AVM) from the 1st of July 2026, which amounts to 15.64 euros. Poslovni reports that it was calculated on the basis of the published official data of the Croatian Bureau of Statistics. “Since the AVM from the 1st of January 2026 amounted to 14.84 euros, and the rate of increase of the AVM from the 1st of July 2026 is 5.40%, the new AVM amounts to 15.64 euros,” HZMO states.
They explain that the rate of adjustment of the current value of the pension, which is applied on the 1st of January and the 1st of July of every calendar year, is determined by adding the rate of change of the average consumer price index in the previous half-year relative to the half-year preceding it and the rate of change of the average gross wage of all employees in the Republic of Croatia in the previous half-year relative to the half-year preceding it.
If the share of the rate of change of the average consumer price index in the sum of the rates is less than or equal to 50 percent, the pension adjustment rate is determined by adding 15% of the rate of change of the average consumer price index and 85% of the rate of change of the average gross wage. If the share of the rate of change of the average consumer price index in the sum of the rates is greater than 50%, the pension adjustment rate is determined by adding 85% of the rate of change of the average consumer price index and 15% of the rate of change of the average gross wage.
The share of the rate of change of the consumer price index in the sum of the rates of change is less than 50 percent, which means that the annual pension growth rate is determined by adding 15% of the rate of change of the average consumer price index and 85% of the rate of change of the average gross wage, so that the adjustment rate from the 1st of July 2026 amounts to 5.40%. “Pensions increased according to the new current value will be paid in September (with the pension for August), together with the difference for July 2026,” they emphasised.
At the session, a Decision was also adopted on the lowest pension for one year of pensionable service from the 1st of July 2026, according to which the lowest pension for one year of pensionable service from the 1st of July 2026 amounts to 16.58 euros, as well as a Decision on the base for determining compensation due to physical impairment and on the adjustment of cash benefits due to physical impairment from the 1st of July 2026, according to which the base for determining compensation due to physical impairment arising from a work injury or occupational disease amounts to 358.48 euros.
