Montenegro’s private security sector asked on 4 November for contract-price adjustments and gradual application of the Euro model, warning that announced minimum wages could add up to 13 million euros in annual gross wage costs. The Chamber of Economy of Montenegro and the Association of Security Managers of Montenegro said the measures would help raise wages while preserving jobs.
The proposals were discussed at a meeting at the Chamber of Economy of Montenegro, attended by its vice-president Nikola Vujović, Association president Dragan Radulović and representatives of companies employing more than 1,000 workers. The organisations said the sector’s ability to absorb higher labour costs was limited by fixed-price contracts and the risk of losing clients.
Financial statements for 2025 cited at the meeting showed that 59 companies provided physical protection for people and property, employing 2,225 people. Their business revenue totalled 38.1 million euros, net profit was 3 million euros and annual gross wage costs were 22.4 million euros.
The estimated increase in wage costs would be more than four times the sector’s total annual net profit. Company representatives said existing business could not cover the extra costs, while raising service prices could lead to client losses and job cuts.
Contracts with public-sector customers were signed at fixed prices that do not track changes in legally required labour costs, the organisations said. Providers would therefore have to meet higher wage obligations for the same contracted revenue. Delays in payments owed by state bodies and companies add to the pressure on their operations.
Private clients regularly settle their bills, but have signalled they may cancel contracts or reduce the scope of security services as their own costs rise. The sector’s representatives warned that falling demand, fixed contract revenue and higher labour costs could force companies to reduce staffing.
The Chamber and the Association proposed a mechanism to adjust prices in existing and future public procurement contracts when labour costs change by law, as well as timely payment of obligations by state bodies and companies. They also proposed setting a minimum acceptable hourly price for security services that covers statutory labour costs, including supplements for night and holiday work, and bars bids below that level.
The organisations called for gradual application of the Euro model and consideration of targeted support for labour-intensive sectors. They said they were ready to provide detailed analyses and proposals to the relevant institutions and take part in developing measures to increase wages, preserve jobs and support stable operations in private security.
