Organizing a funeral entails a financial challenge alongside the emotional burden. At such times, many families wonder if there is any possibility of financial assistance or reimbursement to cover at least part of the funeral costs. In this article, we clarify who actually pays the funeral expense allowance in Croatia, under what conditions, and what role private insurance might play.

A Common Misconception — HZMO and Funeral Costs

Many mistakenly assume that the Croatian Pension Insurance Institute (HZMO) pays a funeral expense allowance, similar to how it was handled under certain past regulations or how it is arranged in other countries in the region. This is not the case in Croatia today; the HZMO deals with pensions and pension insurance rights, whereas the funeral expense allowance falls under the social welfare system and is paid by the Croatian Institute for Social Work, not the HZMO.

Who Is Eligible for the Funeral Expense Allowance

Eligibility for the funeral expense allowance is granted to the person who has paid the funeral costs for a deceased individual who had no person legally or contractually obligated to provide their maintenance—that is, someone who had no one legally required to care for them or cover their funeral expenses. This entitlement is also granted to a person who has covered the funeral expenses of a deceased individual who, at the time of death, was a recipient of the guaranteed minimum benefit, a member of a household receiving the guaranteed minimum benefit, or a recipient of accommodation or organized housing services based on a decision by the competent authority.
In other words, this benefit is primarily intended for socially vulnerable individuals and their families; it is not a general, universal funeral allowance available to all citizens regardless of their financial status.

Amount of the benefit

The reimbursement covers basic funeral costs at the place of burial—or at the beneficiary’s last place of residence in the Republic of Croatia if the funeral takes place abroad. The reimbursement amount also includes the cost of transporting the deceased to the burial site or to the national border in the event of a funeral abroad. Therefore, the reimbursement is not a fixed sum but is determined based on the actual, basic funeral costs in the specific case.

Where and how to submit a request

A request for reimbursement of funeral costs must be submitted to the regional office of the Croatian Institute for Social Work responsible for the area where the beneficiary or the deceased resided. It is important to note that, after paying the reimbursement, the Institute is required to seek repayment from the deceased person’s heirs, except in cases of so-called *bona vacantia* (ownerless property)—that is, when the deceased has no heirs and their property passes to the local self-government unit.

Private life insurance and funeral costs

In addition to the social welfare reimbursement, a portion of the funeral costs may be covered by private life insurance if the deceased held a policy covering death benefits. The terms and payout amount depend entirely on the type of policy and the insurance company that issued it; therefore, the family is advised to check whether the deceased held such insurance and to contact the insurance company for information regarding the payout process. Some insurance policies cover only funeral expenses (so-called funeral insurance), while others pay a lump sum to the policy beneficiaries regardless of how the money is used. Families are advised to review the deceased’s documents to determine whether such a policy exists.

Employer and compassionate assistance

In some cases, if the deceased was employed, the employer may—though is not always legally required to—pay a compassionate grant or solidarity payment to the family following the death of the employee or a close family member. The conditions and amount of such assistance depend on the specific employer’s internal policies and collective bargaining agreements; therefore, the family is advised to inquire with the deceased’s employer about potential eligibility for this type of assistance.

Advice for the Family

Since the funeral expense allowance from the social welfare system is not available to all citizens but is instead tied to specific social criteria, families are advised to verify eligibility in advance, contact the Croatian Institute for Social Work for accurate information, and check if the deceased held private insurance that might cover a portion of the costs. Although funeral homes do not issue these allowances themselves, they can assist the family by directing them to the appropriate institutions and providing information on standard procedures.

Conclusion

Financial assistance for funerals is available in Croatia, but it is subject to specific social conditions and is disbursed through the Croatian Institute for Social Work rather than the Croatian Pension Insurance Institute (HZMO). Additionally, private insurance and potential employer assistance can further alleviate the financial burden on the family. Our team at In Memoriam – Zagreb is happy to guide you to the right institutions and answer any questions regarding funeral arrangements; we are available 24 hours a day whenever you need us.