In recent years, we’ve seen a noticeable rise in the number of retirees returning to or remaining in the workforce. According to Eurostat and national data, Croatia stands out among EU countries for this trend.
But what’s driving it? What legal options are available for working while retired, and how does it all fit into the broader picture of Croatia’s working life and labour market?
Croatia Leads the EU in Part-Time Employment Among Retirees
Eurostat’s 2023 data reveals that 89.4% of employed retirees in Croatia work part-time—the highest percentage in the European Union. In contrast, just 3.4% of non-retired workers in Croatia work part-time.
This isn’t a coincidence. Croatian retirees receiving pensions under the Pension Insurance Act (ZOMO) are allowed to work up to half of full-time hours without losing their pension entitlement. Exceptions include recipients of partial disability pensions or those engaged in specific activities (e.g. agriculture, consultancy, or contractual freelance work), who may be allowed to work longer hours without having their pensions suspended.
What Changes in 2026?
As of January 1st, 2026, important changes will come into effect for retirees wishing to work:
- Recipients of old-age, early retirement, and survivors’ pensions aged 65+ will be allowed to work more than half-time or run a business while still receiving 50% of their pension.
- Recipients of full disability pensions, on the other hand, will lose their pension if they work more than 3.5 hours a day or start a business that requires insurance contributions.
These changes could significantly affect the financial planning of retirees looking to stay active and supplement their income.
Why Are Retirees Choosing to Work?
According to Eurostat, 28.6% of retirees work due to financial need, while 36.3% do so because they enjoy their jobs.
In Croatia, the average pension after 40+ years of service is €801.02, while the average salary is €1,451. Although the pension-to-wage ratio is relatively high at 55.2%, for many, it’s simply not enough to cover rising living costs.
As of February 2025, 36,483 people over the age of 65 were employed—double the number from five years ago. The total number of employed people aged 60 and older has reached 147,000, and the growth continues.
Croatia Among Countries with the Shortest Working Life Expectancy
Despite the growing number of older employees, Croatia still has one of the shortest expected working lives in the EU – 34.8 years, according to Eurostat. That’s significantly below the Netherlands (43.8), Sweden (43), or Germany (40).
Interestingly, Croatia has seen a steady increase in the number of insured individuals: 1,783,516 as of June 2025, up 2.55% compared to the previous year. Still, the short working lifespan combined with a high share of older citizens poses a challenge to the sustainability of the pension system.
What Should Employers, Advisors, and Retirees Know?
Whether you’re a retiree considering re-entering the workforce via employment, freelance contracts, or independent business activities – it’s essential to understand the legal frameworks and tax implications. Employers, too, should be aware of the opportunities to engage experienced retirees without unnecessary administrative burdens.
How Can CONEO Croatia Help?
Although Croatia’s working life expectancy remains short, more and more retirees are opting to continue working. While many are driven by financial need, others find purpose, social connection, and personal fulfilment in staying active.
With major legislative changes coming in 2026, strategic planning is key—whether you’re a retiree, an employer, or an advisor.
At CONEO Croatia, we recommend staying well-informed about: Tax treatment of income alongside pension benefits, the most efficient forms of work engagement (especially for self-employment), how the upcoming changes may affect your future income.
CONEO Croatia is here to help you navigate legal updates and make informed decisions.
