In accordance with the Ordinance on the Amounts of Bases for Calculating Contributions for Mandatory Insurances for 2026 (Official Gazette 150/25), we bring you the new monthly bases for calculating contributions.

Lowest and Highest Monthly Base for Calculating Contributions:
• Lowest monthly base (applicable to all – company employees or craftsmen/tradesmen): €757.34 (0.38 × average salary). This is the legal “minimum” below which contributions cannot be calculated for a person working full-time (e.g., in cases of sick leave, etc.).
• Highest monthly base: €11,958.00 (6.0 × average salary). This is the legal “maximum” for calculating contributions for pension insurance.

New minimum wages have also been determined for all individuals performing independent /craft business activities.
For a sole proprietor paying income tax (obrtnik dohodaš), the minimum gross wage is set at €1,295.45 (same minimum wage is applicable also for companies directors/board members).

(This amount is calculated by multiplying a coefficient of 0.65 by the average gross salary in the Republic of Croatia paid in legal entities for the first three quarters of the previous year, which for 2025 amounted to €1,993.00 – according to the Croatian Bureau of Statistics, Official Gazette No. 133/25).

Flat-rate Sole Proprietors (Paušalisti):
1. If your flat-rate craft is your sole or primary occupation
For 2026, the base for the calculation of contributions is €797.20. The following rates from the Contributions Act apply for: Pension (MIO 1) = 15%, Pension (MIO 2) = 5%, Health Insurance = 16.5%.
2. If you are a flat-rate sole proprietor alongside employment
If you are employed and the craft is your “secondary activity,” contributions are not paid monthly. Instead, they are calculated annually after the submission of the PO-SD form. The rates are: Pension (MIO 1) = 7.5%, Pension (MIO 2) = 2.5%, Health Insurance = 7.5%.

NEWS – Sole Proprietorship and Working During Retirement

Under the new Pension Insurance Act (Official Gazette No. 96/25), starting January 1, 2026, changes are introduced for sole proprietors.

Craft/Business alongside retirement: Retirees over the age of 65 will be able to open or continue running a craft business while receiving 50% of their pension (factor 0.5), with significant rates relief regarding the payment of contributions for secondary activities.
Pursuant to Art. 7, item 6 of the Law on Contributions (Offical Gazette No. 84/08 – 152/24), performing a craft business activity while being employed is considered to be the performance of another ‘’ side’’ activity.

What does this actually mean?

When you are employed (or retired), contributions for your pension and health insurance are already covered through your salary/pension. Therefore, your craft business is not considered your primary insurance but an additional source of income.

Main advantages of running a craft business “alongside retirement”:
• No monthly payment slips: You do not pay contributions every month.
• Payment by Tax Administration decision: The Tax Administration will send you a single annual decision with the amount due for the previous year.
• Lower rates: Contributions for secondary activities are usually significantly lower than when the craft business is your only job.

How are contributions calculated in 2026?

Considering the significant increase in bases and new legal incentives for retirees, 2026. brings more demanding financial conditions for active sole proprietors, but also opens doors for easier business operations for those running a craft business as a secondary activity (alongside retirement). Plan ahead to ensure the stability of your business in the coming year.

Author, Admin