NewsEurope Now movement representative criticizes President Milatović's pension reduction claims

Europe Now movement representative criticizes President Milatović’s pension reduction claims

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Tonći Janović, a representative of the Europe Now Movement, has criticized President Jakov Milatović for his recent statement predicting that pensions will decrease with the implementation of the “Europe Now 2” program. Janović described this prediction as evidence of Milatović’s misunderstanding of fundamental economic concepts and labeled it as part of a series of misleading statements about the government’s actions and the “Europe Now 2” program. He accused Milatović of irresponsibly disturbing the public with these claims while focusing on his election campaign for Podgorica.

Janović clarified that the “Gross 1” salary encompasses net salary, personal income tax, and mandatory social security contributions paid by the employer on behalf of the employee. On the other hand, “Gross 2” salary includes “Gross 1,” local taxes, and additional employer contributions.

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He explained that changes in “Gross 1” salary due to the “Europe Now 2” program involve shifting contributions from the employee’s gross salary to net salary, along with an increase in the base amount due to the higher minimum wage. Since all pension calculations and adjustments are based on “Gross 1” salary, the increase in the minimum wage to 600 or 800 euros, and consequently the rise in average wages, will lead to an increase in pensions, not a decrease.

Janović accused Milatović of misusing his position to advance party interests rather than serving the public equitably. He compared Milatović’s actions to the reasons why citizens removed the previous president, suggesting that Milatović’s approach reflects not only a lack of economic understanding but also arrogance and malice.

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