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Union of Free Trade Unions of Montenegro urges amendments to the Labor Fund Law for pension contributions

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The Union of Free Trade Unions of Montenegro (USSCG) has sent an initiative to all parliamentary clubs in the Assembly, proposing amendments to the Law on the Labor Fund.

  • “With this initiative, we have proposed expanding the scope of the Labor Fund’s powers to allow it to pay pension and disability insurance contributions based on the minimum wage for employees who have met one of the pension eligibility criteria, but whose employers have not made contributions for the effective years of service,” explained USSCG representatives.

They added that there are designated financial resources available for the implementation of this initiative, as contributions are allocated for the Labor Fund.

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  • “These funds amount to approximately five million euros annually, with only seven percent used for the current responsibilities of the Fund, while 93 percent is redirected to other budgetary units,” stated USSCG.

The union emphasized that employees are unable to receive full pension rights due to employers’ failure to pay pension and disability contributions during salary payments, which directly results from the inaction of the relevant authorities, thus representing the state’s responsibility.

  • “Given this, we urge you to initiate the process in Parliament to amend the Law on the Labor Fund, so that the missing contributions are paid, correcting the injustice to many employees and creating conditions for them to receive their entitlements based on the effective years of service,” the USSCG’s urgency reads.

As a reminder, the Union had submitted the same initiative to parliamentary clubs in 2021 and 2022, but has yet to receive a response.

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