The government submitted the new Pension Insurance Act to parliamentary procedure at its session on Thursday, which brings a key innovation: the introduction of an annual pension supplement, colloquially called the 13th pension, but it will not be in full amount but will depend on years of service.
"We are improving the rights of pensioners, strengthening the fairness and sustainability of the pension system, and taking important steps towards a safer and fairer future for all pensioners," said Prime Minister Andrej Plenković at the beginning of the Government session.
The goal is to increase pensions and the adequacy of pensions, so that the overall average pension is 800 euros by the end of the mandate, we are reducing differences in pensions, and we are enabling greater participation of pensioners in the labor market, stated Minister of Labor, Pension System, Family and Social Policy Marin Piletić.
"The Pension Insurance Act (ZOMO) does not only concern one million and 230.000 pensioners, but also applies to all insured persons, of whom there are one million and 756.000," Piletić emphasized.
New, more favorable formula for adjusting pensions twice a year
The law introduces a new, more favorable formula for adjusting pensions twice a year in a ratio of 85 to 15 in favor of wage growth, For each child, 12 months of service for mothers are added, instead of the previous six months, which will represent an increase in pensions for future beneficiaries of an average of three percent for each child, and the bonus for later retirement is also redefined, i.e. the requirement of 35 years of service and the five-year limit are abolished.
Introduction of a permanent annual allowance
The key innovation is the introduction of a permanent annual supplement for all pensioners on retirement. Although it is colloquially called the 13th pension, it will not be in the full amount of the monthly pension. Regardless of the amount of pension income, the amount of the annual supplement is linked to the full years of pension service, which are taken into account when calculating the amount of the pension, and for those beneficiaries whose pension is determined without taking into account pension service, a minimum period of 15 years is set for determining the annual supplement.
"The government will determine the amount of the annual allowance in October with a decision and payment in December, so that it will be paid as early as 2025," said Minister Piletić.
From January 1, 2026, the minimum pension will increase by about three percent, and disability pensions by 10 percent, the penalty for early retirement after reaching the age of 70 will be abolished, and retirees who take up employment after the age of 65 will be allowed to work full-time with the payment of 50 percent of their pension.
"The current pension value for the lowest pensions will be 106 percent," he added.
The new law will allow craftsmen and the self-employed to receive a 50 percent pension without interruption of work. Disability pension recipients will be allowed to work up to 3,5 hours a day and their check-ups will be abolished.
"We are also enabling the addition of service on various grounds and are equalizing disability pension beneficiaries due to partial loss of working capacity with other beneficiaries," the minister said.
The legislative proposal prescribes an increase in the census for determining the fact of support for family members when exercising the right to a family pension to the amount of the lowest pension for 15 years of pension service if the family member lived in the same household with the deceased insured person or beneficiary, or if not, the census is prescribed in the amount of the lowest pension for 15 years of pension service increased by 20 percent.
The requirement regarding the prescribed date for the existence of a common-law relationship on March 28, 2008, when it was introduced into the pension system, is also being deleted.
Photo: HINA/Zvonimir Kuhtic
