Starting October 1, approximately 300,000 employees in Montenegro will see an increase in their wages, according to Finance Minister Novica Vuković.
In a statement addressing frequently asked questions about the Fiscal Strategy, Vuković highlighted that this wage increase particularly benefits those earning minimum wage. Workers with a high school education can expect an increase of up to 150 EUR, while those with higher education can expect up to 350 EUR.
He added that the minimum wage will be set at 600 EUR for jobs requiring up to a V level of education and 800 EUR for jobs requiring a VI level of education, aiming to achieve an average wage of 1,000 EUR.
Regarding pensioners, Vuković announced that they can also expect a new increase—about an eight percent rise in their income.
“Starting in January next year, all pensions above the minimum will increase by an average of about 50 EUR,” he said.
For businesses, Vuković stated that they can look forward to an improved business environment. The reduction in the pension and disability insurance (PIO) contribution rate paid by employers will result in significant savings, which can be used for additional hiring or offsetting the costs of the increased minimum wage.
He explained that employers will save on every wage of 550 EUR or more, easing operations and stimulating growth.
When asked about the impact of the reform on the tax burden on wages, Vuković responded that this reform will enable Montenegro to have the lowest tax burden on labor and consequently the lowest labor costs in Europe.
“Lower tax burdens will also lead to reductions in unemployment and informal employment. I am confident that all these measures will contribute to the further development of our economy and the improvement of the living standards of all citizens,” Vuković concluded.
