Pension insurance system

The first two pillars of pension insurance are compulsory and the contributions for them are deducted by the employer from your salary, the third pillar is voluntary, and by investing in it you receive government incentives

The pension insurance system in Croatia is based on three pillars of insurance - the first two are compulsory and the contributions for them are deducted by the employer from your salary, and the third one is voluntary. 

First Pillar

The first pillar of pension insurance is compulsory and is managed by the Croatian Pension Insurance Institute (HZMO). 

A contribution for pension insurance from the salary in the amount of 20% is calculated for persons insured only in the first pillar (persons who in 2002, at the time of the introduction of the second pillar were more than 50 years old or persons who were less than 50 and more than 40 years old and did not voluntarily join the second pillar). 

The first pillar is based on the principle of intergenerational solidarity and pays the pensions of current pensioners. A pension for insured persons who were insured only in the first pillar of pension insurance is determined on the basis of the Pension Insurance Act. 

The paid contributions are the income of HZMO, which is part of the State Treasury system, i.e. the assigned revenue of the State budget.

Second Pillar

The second pillar is also compulsory pension insurance and is governed by the compulsory pension Funds Act and the pension Insurance companies Act. They are managed by special privately owned pension companies under the supervision of the Croatian Financial services Supervisory Agency (Hanfa).
The contribution rate for insured persons pillar I and Pillar II for compulsory retirement provision based on generational solidarity is 15% and the contribution rate for compulsory retirement provision based on individual capitalised savings is 5% of the gross salary.
If you are insured in the second pillar, the employer allocates five percent of the gross amount from your salary and pays it to the compulsory pension fund that you have chosen. If you decide to change the compulsory pension fund, everything that has been paid up until then is transferred to the new fund. Each Fund shall keep the resources correctly for each individual employee and shall increase them by the return it has received as a result of the investment of those resources.

You can monitor the status of your personal account after registration on the website of the Central Register of insured persons (REGOS).

Insured persons insured under Pillar I and II shall be allowed to choose a more favourable pension. You can choose a pension as if you were insured only in the 1st pillar or basic pension from the 1st pillar and from the 2nd pillar a pension based on individual capitalized savings. The pension is determined on the basis of the pension Insurance Act, the compulsory pension Funds Act and the pension Insurance companies Act.

Third Pillar

The third pension pillar is voluntary and falls under the responsibility of voluntary pension fund management companies. This pillar is similar to an investment fund because your money invests in stocks, bonds and money deposits, but with certain legal limits.

Savings in a voluntary pension fund entitle you to state incentives that amount to 15 percent of the paid contribution in the previous calendar year, up to a maximum of EUR 99.54 per year.

You can withdraw savings in the Pillar III account at the earliest at the age of 55 through one of the selected forms of pension, regardless of employment status.
If you have become a member of the Fund by 31.12.2018, you can be entitled to a pension at the age of 50.
You can change the voluntary pension fund, but pay attention to the cost of this transition.

Pension insurance - registration

Pension insurance based on generational solidarity is a part of the pension insurance system in which insured persons are provided with rights on the principles of reciprocity and solidarity in case of old age, incapacity, partial or complete loss of working capacity and bodily injury, and their family members' are provided with rights in case of death of the insured person, i.e. the beneficiary of the rights.
Persons insured in the pension insurance system on the basis of generational solidarity are compulsorily insured all employed persons and persons who perform independent or professional activity and on the basis of that activity are covered by compulsory pension insurance. These are: employees and persons equated to them (persons appointed to certain positions, etc.), independent professionals (craftsmen, sole proprietors, lawyers, public notaries, etc.), persons who are professionally trained to work without concluding an employment contract, farmers and some other groups of persons (caregivers to disabled Homeland War veterans, caregiver parent, board members, athletes, etc.).
In case of reduced working capacity and bodily injury, due to an injury at work or an occupational disease, persons covered by this insurance also include pupils and students during practical classes, persons serving a sentence during work, persons participating in rescue from natural disasters, etc.
The status of the insured person is established by submitting an application for insurance. The application is submitted by the employer of the insured person or the insured person themselves when they are obliged to pay pension insurance contributions.
The Ministry of Finance, i.e., the Tax Administration, is responsible for collecting the contributions.
After termination of the compulsory pension insurance, it is possible, within twelve months, to register for the so-called extended insurance, which is voluntary and through which the insured persons keeps the insurance, without restrictions. Extended insurance can also be realised according to the regulations of the European Union (EU) and after the termination of insurance in an EU member state, i.e., a country with which a social insurance contract has been concluded.
The application for compulsory pension insurance is submitted to the regional department/office of the Institute. It is submitted by employers and other persons obliged to submit the application, bearing in mind that from 1 January 2014, all employers with more than 3 insured persons are obliged to submit the application electronically.
e-Applications is a web app that allows users to register/deregister from pension insurance, to make changes in their status during the insurance period, to submit information on the start/ termination of business of contributors, as well as changes in the data of contributors.
From 1 July 2013, the Croatian Pension Insurance Institute has been providing electronic record keeping of data on the employment-law status of insured persons - an electronic record, as a replacement for the employment record book.
Electronic record (as proof of completed length of service) can be obtained via e-Citizens (with an e-Pass credential- username and password) and on the website, or in person at all regional departments and offices of the Institute, by presenting your identity card and providing your Croatian Personal ID Number.
Pensionable service is a collective name for compulsory pension insurance periods and extended insurance periods (insurance period) and for periods outside the insurance system that are recognised as pensionable service under certain conditions.

Electronic services of the Croatian Pension Insurance Institute for natural persons

Electronic services of the Croatian Pension Insurance Institute for legal persons  

How can insured persons obtain electronic documents from REGOS?

REGOS is authorized to make available the insured persons’ reports in the Register to insured persons and other persons, as well as to persons obliged to submit data, electronically, respecting the principle of confidentiality.
The development and improvement of the REGOS e-Services has enabled a faster and more efficient way of communicating with citizens to whom documents are available in electronic form with the use of valid e-Citizens system credentials.

The following documents can be obtained free of charge through REGOS e-services:
Bank document - JOPPD Report on receipts and paid contributions for pension insurance from 1 January 2014 from the JOPPD Form
• Confirmation of the balance and transactions on the personal account
• Extract from the REGOS register for the period before 31 December 2013
• Certificate of membership in the compulsory pension fund
• Notice of the monetary value of the assets in the personal account
• Copy of the registration in the compulsory pension fund
• Extract from the register for other income - for the period before 31 December 2013
• Certificate of ownership of shares.
Based on the online request, REGOS creates the requested document in electronic form and immediately delivers it to the entered e-mail address.