Croatia Rules Out Extra Increase in Elderly Allowance but Announces New Measures

The Croatian government has responded to the Ombudswoman's special report on the rights of elderly people, saying there is no room for an additional increase in the national allowance for older persons, nor for index-linking it twice in the same year. The announcement came as part of the government's official position on the report.

In its response, the government noted that the national allowance was raised to 150 euros on 1 January 2024 and, after adjustments for the cost of living, stands at 160.22 euros from 1 January 2026. "Given increased costs and global economic uncertainty, there is no room for a further increase and double indexation within the same year," the government stated.

The government also pointed out that the allowance is not a pension insurance mechanism, so it cannot be adjusted in the same way as pensions. Instead, it takes into account economic and fiscal possibilities, the guaranteed minimum benefit and the lowest pension for 15 years of service.

Alongside this, the government highlighted other measures aimed at improving the position of older people. It said the average pension has risen from 358 euros in 2016 to around 767 euros in 2026, an increase of 114.5 per cent, while the share of elderly people unable to afford basic needs fell from nine per cent in 2016 to 3.6 per cent in 2025. The budget for pensions and pension benefits this year is 10.2 billion euros, more than double the 4.88 billion euros in 2016.

In response to the Ombudswoman's recommendation to abolish tax on pensions, the government announced an increase in the tax relief for pensioners to 100 per cent, for which an additional 180 million euros is planned. It also announced the adoption of a special law on the rights of elderly people, which should improve their dignified life, social inclusion and institutional protection. An action plan to combat poverty and social exclusion by 2027 is also being prepared.

The government said it has secured almost 200 million euros for the construction of 20 centres for older people, which will provide accommodation for 1,947 users and non-institutional services for 4,921. It also plans to support informal carers, including families of people with dementia, with an additional three million euros. In healthcare, it is expanding palliative care capacities, including 73 coordinators and 73 mobile palliative teams, 130 beds in care homes and an increase in hospital palliative beds from 360 to 796.