Minister Alen Ružić Announces Reorganization of Inclusive Allowance and 2027 Budget Proposal

Minister of Labor, Pension System, Families and Social Policy Alen Ružić announced a reorganization of the inclusive allowance system on Saturday, 2026-11-13. During a Government session, the 2027 state budget proposal was presented, which includes specific allocations for social welfare and disability support. The Ministry of Labor, Pension System, Families and Social Policy has an approved budget of €14.2 billion for the new budget period.

According to Minister Alen Ružić, the largest share of the Ministry's budget is for pension benefits and the budget confirms commitment to raising social standards. However, the inclusive allowance budget for 2027 is expected to be reduced from €1,179,859,000 to €1,140,000,000. This represents a projected decrease of approximately €39.9 million, or 3.4%, compared to the 2026 rebalanced amount of €1.179859 billion.

Reorganization of the Inclusive Allowance System

The inclusive allowance system is undergoing changes to better serve the population. The system aims to focus support on individuals with the most severe disabilities, particularly those with multiple disabilities. Minister Alen Ružić stated that no one's rights will be revoked, but the inclusive allowance must be focused on those with the most severe disabilities.

The need for reorganization comes as the number of persons with disabilities registered in the system has significantly increased. As of early November 2026, there were approximately 70,000 pending cases for the inclusive allowance. To address administrative needs and processing, the number of experts has been increased by 50 percent.

Legislative Changes and Future Outlook

The government has outlined a timeline for legal adjustments to accommodate these changes. The Government plans to initiate the process of amending the Inclusive Allowance Act during the first quarter of 2027. These legislative steps are intended to align the allowance system with the updated budgetary goals and the increasing number of registered individuals.

The proposed budget for 2027 reflects a strategic shift in how the Ministry of Labor, Pension System, Families and Social Policy distributes funds. While the total budget for the Ministry remains substantial at €14.2 billion, the specific allocation for the inclusive allowance is set to decrease to €1.14 billion for the 2027 period.