Pensions in Montenegro are secure, and their regular payment is guaranteed, according to Vladimir Drobnjak, Director of the Pension and Disability Insurance Fund (PIO). The state ensures the payment of legally prescribed pension and disability benefits, and funds for these purposes are already allocated in the national budget.
Between 2019 and 2023, the PIO Fund saw growth in revenue, an increase in employment, and a decline in its deficit, which reached 6.49 percent in 2023. However, recent reforms, including the “Evropa sad” programs that reduced contribution rates and increased the minimum pension to 450 euros, have created new financial challenges. The shortfall will be covered by the state budget, supported by the Fiscal Strategy 2024–2027.
Key challenges for the Fund include streamlining administrative processes, reducing delays caused by incomplete submissions and frequent employee absences, and accelerating the implementation of electronic data exchange with the Tax Administration to simplify reporting of contributions and salaries.
In 2025, the PIO Fund signed protocols for electronic data exchange with pension funds in Bosnia and Herzegovina, Republika Srpska, and Serbia, allowing faster processing of pensions for Montenegrins who worked in the region. This eliminates the need for individuals to travel abroad to submit documentation.
Digitalization efforts also include the introduction of “PIO Assistant,” an AI-powered tool on the PIO website that provides quick answers to frequently asked questions and facilitates access to pension and disability information.
The Fund continues to modernize services for citizens through online platforms, administrative days in regional offices, and measures to ensure efficient, equal, and timely access to all beneficiaries.
Reforming the pension system remains a priority, with a focus on demographic challenges, the ratio of employees to pensioners, and migration trends. Drobnjak emphasizes that sustainable pensions require not only economic measures but also smart immigration policies and broader social strategies to maintain the Fund’s long-term stability.
