Retirees in Croatia to be allowed to work full-time

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ZAGREB, 30 June 2025 (Hina) – The Croatian Parliament has passed a new Pension Insurance Act allowing retirees to work full-time while continuing to receive half of their pension.

The law, approved on Friday, will take effect from 1 January 2026, giving authorities time to adapt systems and processes.

This significant change is expected to be taken up by around 8,800 pensioners in its first year of application. According to the Croatian Pension Insurance Institute (HZMO), interest among retirees in remaining in the workforce has been steadily rising.

At the end of May 2025, a total of 36,106 pensioners in Croatia were already employed part-time (up to 50 percent of full working hours) while drawing their pension. This is an increase compared to the same period last year when 31,028 retirees took advantage of the same option.

Croatia currently has 1,230,184 pensioners. The average net pension for May stood at €644.69, which represents 44.8 percent of the average net salary for April. On average, Croatians retire with 31 years of pension contributions.

Retirees most commonly work in wholesale and retail trade and vehicle repair, with 6,022 employed in those sectors. This is followed by manufacturing, professional and scientific activities, administrative and support services, construction, and transport and storage, where a further 3,152 are employed.

In accommodation and food services, 2,605 pensioners are working, while 2,172 are employed in healthcare and social work.

Zagreb leads the country in the number of employed retirees, with 10,171 currently working, followed by Split-Dalmatia County (4,005), and then Primorje-Gorski Kotar, Istria, and Zagreb counties. There are currently 23,349 men and 12,757 women among employed pensioners.

Growth Expected by 2028

With the new law set to take effect in 2026, HZMO projects that 8,811 pensioners will begin working full-time while drawing 50 percent of their pension. The Ministry of Labour and Social Policy forecasts that over 53,000 retirees will be working by 2028 under this scheme.

Additionally, nearly 6,000 pensioners are expected to continue operating businesses past the age of 65 while receiving half their pension.

The delayed introduction of the full-time work provision is due to the need for system and administrative adjustments, which aim to ensure smooth implementation. The financial impact of the new measures is estimated to reach nearly two billion euros by the end of the government’s term.

Further changes set to come into force on 1 January 2026 include a 10 percent increase in invalidity pensions, the elimination of penalties for early retirees upon reaching 70 years of age, and the possibility for recipients of full invalidity pensions to work for up to 3.5 hours a day.

These reforms represent a significant shift in Croatia’s approach to pensions and retirement, aiming to provide more flexibility and economic participation for older citizens.