The Pension and Disability Insurance Fund (PIO) in Montenegro reported a deficit of €189.82 million for the first 11 months of 2024, with an expected year-end total exceeding €200 million. In October and November, during the implementation of the “Europe Now 2” program, the deficit was €49.4 million. The total expenses of the fund reached €670.55 million, with pension payments accounting for 99.87% of the costs. However, revenue from pension contributions covered only 71.69% of the expenditures, and the government covered the remaining 28.31%.
The deficit for 2025 is projected to rise to €389.1 million, with expenses totaling €783.7 million. A key factor contributing to the deficit is the reduction in employee contribution rates from 15% to 10% and the increase in minimum pensions to €450, which took effect in January 2024.
In terms of pension adjustments, pensions are set to increase three times a year (January, May, and September). Due to the recent wage increases under the “Europe Now 2” program, a higher pension adjustment is expected in February compared to previous increases.
As of November 2024, the PIO Fund disbursed pensions and other rights to 130,111 beneficiaries, with 46,595 individuals receiving the minimum pension of €450.
