HZMO announces 5.40 percent pension increase in Croatia

The Croatian Pension Insurance Institute (HZMO) has announced a 5.40 percent increase in the current value of pensions, effective July 1, 2026. Following a meeting of the Governing Council on August 26, 2026, the current value of the pension (AVM) was set at 15.64 EUR, up from 14.84 EUR on January 1, 2026.

The adjustment rate is calculated based on official data from the Croatian Bureau of Statistics, specifically combining the rate of change in the average consumer price index and the average gross salary of all employees in Croatia over the previous six-month period. Because the share of the consumer price index change was less than 50 percent, the adjustment was determined by combining 15 percent of the consumer price index change with 85 percent of the average gross salary change.

Increased pension payments, including the retroactive difference for July 2026, will be paid out in September alongside the August pension. Additionally, the council set the lowest pension for one year of pension service at 16.58 EUR as of July 1, 2026.