Croatia to increase pensions by approximately 5.38 percent

More than 1.2 million pensioners in Croatia are expected to receive a pension increase of approximately 5.38 percent next week. This adjustment is significantly higher than the 2.68 percent increase seen in January, driven largely by higher inflation rates.

The adjustment is a legal requirement calculated twice a year based on the ratio of average wage growth and inflation (85:15 in favor of the higher growth factor). While these adjustments typically occur in January and July, delays in statistical data often push payments to September or October. However, pensioners will receive retroactive payments for the months they waited.

The impact will vary among recipients. The adjustment does not simply add a percentage to existing pensions but recalculates the total value based on a new current value, estimated at 15.64 euros per year of service. Consequently, those with higher pensions may see larger absolute increases, with some receiving up to 130 euros more, while those with lower pensions will see smaller increases.