Montenegrin businesses warn of risks from proposed wage model

The Economic Chamber of Montenegro has warned that the proposed ‘Euro model’ for wage increases could threaten the survival of small businesses and large systems within the transport and freight forwarding sectors.

Igor Banović, President of the Transport Committee, noted that these sectors lack the capacity to raise service prices to offset higher labor costs, as competitiveness is already compromised. He specifically highlighted concerns regarding the impact on companies reliant on the Port of Bar, noting that increased payroll costs may not be compensated by expected growth in cargo throughput.

Business representatives expressed concern that excessive state regulation could drive growth in the shadow economy. They also argued that the proposed wage increases may conflict with European Union minimum wage directives, which are part of national legislation. The Chamber has called for dialogue with authorities to find a sustainable model aligned with economic realities.