As of August 1, 2025, significant amendments to the Mandatory Health Insurance Act have come into effect, bringing higher sick leave compensation and simplified administrative procedures. These changes provide greater financial security for insured individuals during temporary incapacity for work.
Changes Introduced by the Amendment to the Law
Under the new regulations, the minimum monthly sick leave compensation has increased from €110.36 to €353.15, while the maximum compensation has risen from €565.04 to €995.45. Insured individuals are now entitled to 100% of the compensation base for caring for a child under the age of seven, instead of the previous limit of three years. Additionally, a new right to reimbursement of transportation costs for medical purposes has been introduced, calculated at a rate of 0.025% of the budget base per kilometre.
The list of individuals exempt from the obligation to report to the Croatian Health Insurance Fund (HZZO) every three months has also been expanded, significantly reducing administrative burdens for insured persons.
These increases apply to all sick leaves that began before August 1, 2025, and are still ongoing, as well as those opened after that date. This ensures higher compensation for those on long-term sick leave, contributing to financial stability during recovery.
Conditions for Compensation and Benefit Payments
Sick leave compensation and parental benefits are paid depending on the insurance status and previous insurance history:
- To be eligible for sick leave compensation, an individual must have at least 9 consecutive months of insurance or 12 months with interruptions within the past two years.
- If this condition is not met, the compensation is 25% of the budget base (€110.36) for the entire duration of the sick leave.
- For maternity and parental benefits, at least 6 consecutive months of insurance or 9 months with interruptions within the past two years are required.
- If this condition is not met, the benefit amounts to 159% of the budget base (€701.89) for the entire duration of the entitlement.
- If only one or no salary has been paid, the compensation base is set at the minimum base (€683.24).
Amount of Compensation Covered by the Croatian Health Insurance Fund (HZZO)
If the insured person meets the conditions of prior insurance, the compensation is paid according to the following rules:
- 70% of the base for the first six calendar months of continuous sick leave (Art. 55 of the Health Insurance Act)
- 80% of the base from the seventh to the end of the eighteenth month of continuous sick leave
- 50% of the last paid compensation after the eighteenth month of continuous sick leave (Art. 52 of the Health Insurance Act)
The compensation is not reduced to 50% in cases of treatment for malignant diseases, care for a child suffering from a malignant disease, hemodialysis or peritoneal dialysis, and procedures involving the donation and transplantation of human body parts.
If the condition of prior insurance is not met, the compensation amounts to 25% of the budget base (€110.36) for the entire duration of the sick leave.
Special Cases with the Right to 100% Compensation
Certain situations are subject to special rules. In these cases, the compensation amounts to 100% of the base, with a maximum limit of €995.45 per month. This includes pregnant women and new mothers, individuals caring for a sick child under the age of seven, living donors of tissue and organs for the benefit of another person and individuals in isolation as carriers of infectious diseases. It is important to note that compensation is only paid if the insured person meets the conditions of prior insurance.
Additional Amendments to the Mandatory Health Insurance Act
The amendments also include:
- Provisions related to the obligation of insured persons with registered unemployment status to report in person to the Croatian Health Insurance Fund (HZZO)
- Increases in both the minimum and maximum compensation amounts, including compensation for temporary incapacity for work due to infectious disease outbreaks, which are financed from the state budget
- The right of insured persons to financial reimbursement for transportation costs related to the use of healthcare services under the mandatory health insurance system
These amendments further simplify administrative procedures and provide broader protection for insured individuals.
How Can CONEO Croatia Help You?
The increase in sick leave compensation represents a significant step forward in improving the social security of insured persons in Croatia. These changes provide greater financial support to individuals facing temporary incapacity for work, thereby improving their quality of life during recovery.
If you would like to know how these changes may affect your company or your employees, feel free to contact us at CONEO Croatia. Our team of experts will help you prepare and take full advantage of the new regulations.
