The Government of Montenegro has assured that the method for calculating pensions will remain unchanged, and that the amount of pension contributions will not affect pension levels. As a result, no reductions in pensions are anticipated in the near future. The government has criticized what it describes as misleading statements by certain high-ranking officials, who are allegedly using inaccurate and populist rhetoric for their pre-election campaigns.
According to the government, significant increases in average wages are driving the highest pension growth seen in recent years. Starting January 1st, pensions are expected to rise by an average of 50-60 euros, continuing the trend initiated by the historic increase of the minimum pension to 450 euros. The calculation of pensions is individualized, based on the conditions set by the Law on Pension and Disability Insurance. It involves a formula that considers an individual’s base salary (gross salary 1), the average salary in Montenegro, and their years of service. This results in a personal pension point value, which is then multiplied by the pension value per point, adjusted three times a year.
The government emphasized that pension contributions have never been a factor in pension calculations, so any future reductions in contributions will not impact pension amounts. They also noted that the previous Minister of Economic Development, who is now the President of Montenegro, did not raise concerns about these issues when the minimum wage was increased under the “Europe Now 1” program, which led to a significant rise in average wages. The same applies to the ongoing “Europe Now 2” program.
The government has demonstrated its commitment to pensioners through changes to the Law on Pension and Disability Insurance and the increase of the minimum pension from 296 to 450 euros, reflecting their dedication to ensuring a minimum standard of living for all citizens without incurring debt.
In conclusion, the government reassured that no measures would undermine the future of pensioners. Instead, those receiving pensions above the minimum amount of 450 euros will benefit from a regular adjustment in January 2025. This adjustment is expected to be around 7-8%, or approximately 50-60 euros, due to the anticipated rise in average wages in Montenegro as a result of the “Europe Now 2” program.
