Prime Minister Milojko Spajić has announced that the government’s new fiscal strategy will be finalized and available for public discussion within the next 15 to 20 days. He clarified that contributions for pension and disability insurance (PIO) will be reduced rather than eliminated, and the PIO Fund will continue its operations as usual, funding pensions under the existing first pillar system.
Responding to a question from Milun Zogović of the Democratic People’s Party (DNP) regarding the progress of the Europe Now 2 program, Spajić noted that the segment aimed at improving the living standards of pensioners has already been implemented.
The next phase of the program, according to Spajić, will focus on enhancing the standards for all employees in Montenegro.
“I emphasize ‘all’ because the previous government increased salaries only for public administration employees. This has led to a greater imbalance in the labor market, as the private sector, which is crucial for the budget, was overlooked,” Spajić explained.
Over the past months, alongside the intense activities aimed at securing an IBAR rating, the government has been dedicated to developing the Fiscal Strategy. This strategy, which aligns with the Budget and Fiscal Responsibility Law and will be adopted by the Parliament, is designed for the duration of the current government’s mandate.
“In accordance with legal regulations, we will prepare the Fiscal Strategy, which Montenegro has not had since 2021, and present it for public debate within the next 15-20 days. The strategy will encompass all fiscal policy measures of the 44th government, including the Europe Now 2 program,” Spajić stated.
He emphasized that the Europe Now 2 program aims to reduce labor tax burdens and increase both the minimum and average wages. This necessitates respecting social dialogue, involving decision-making through tripartite discussions among the government, trade unions, and employers.
“The Fiscal Strategy will be adopted by the Parliament, and I must note that such reforms require broad social consensus, similar to the one achieved during the adoption of the Europe Now 1 program,” Spajić concluded.
When asked whether the implementation of this program entails the abolition of contributions for pension and disability insurance or a reform of the PIO Fund, Spajić clarified:
“I can responsibly state that contributions for pension and disability insurance will not be abolished but will be reduced. The Pension and Disability Insurance Fund will continue to operate as before, financing pensions within the first pillar of the pension system. Contrary to certain public speculations, we do not plan to implement the second pillar, which involves employees contributing to pension and disability insurance,” Spajić concluded.
