Croatia sends over €1 million in pensions abroad daily – here’s where it goes

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Croatia has more than 1.2 million pensioners, and a significant portion of pension payments go to those living abroad.

As tportal reports, according to the Croatian Pension Insurance Institute (HZMO), over €365 million was paid last year to individuals who worked in Croatia but now reside in other countries.

On average, each recipient receives around €170 per month.

Pensions Paid Based on International Agreements

Pensions sent abroad are based on bilateral and multilateral social security agreements.

Croatia has such agreements with 52 countries, including EU nations, members of the European Economic Area (Switzerland, Norway, Iceland), former Yugoslav states, and countries like Ukraine, the USA, Canada, the Philippines, Mexico, and South Africa.

These agreements allow people who worked partly in Croatia and partly abroad to receive pensions from multiple countries where they contributed.

This applies to Croatians who emigrated after working in Croatia, as well as foreign nationals who spent part of their working life in Croatia.

Where Does the Money Go?

In 2023, pensions were sent to between 185,000 and 188,000 individuals each month—more than the population of Split.

Most of these recipients live in Serbia (over 46,000), Bosnia and Herzegovina (over 33,000), and Germany (about 12,000).

On the other hand, the lowest number of pensioners—just eight—were recorded in Bulgaria.

Pension Amounts Vary

The average pension for recipients abroad ranged from €152 to €170 in 2023, increasing twice a year through pension adjustments. However, there are significant differences in the amounts received.

In December, 72,243 pensioners received less than €70, while more than 41,000 received between €70 and €140. At the higher end, 93 pensioners received over €1,500, and 79 received between €1,350 and €1,500.

Although Croatia pays over €1 million per day in pensions abroad, this represents only 4.4% of the total pension expenditure for the year. Many of these pensioners also receive payments from the countries where they spent the rest of their working lives.

With international pension payments continuing to rise, Croatia remains connected to its diaspora through its pension system, ensuring former workers receive their entitled benefits wherever they live.