Montenegro approves ‘Euro model’ wage and pension reform

Euro model minimum wage increase Montenegro economy pension reform tax reform

The Montenegrin government has approved a comprehensive economic reform package known as the ‘Euro model,’ set to take effect in January 2027. The plan introduces a tiered minimum wage system based on education levels: 1,000 EUR for basic education, 1,250 EUR for secondary education, and 1,400 EUR for higher education. This reform is expected to affect over 250,000 employees across both the public and private sectors.

To fund these increases, the government plans to abolish the 10 percent pension and disability insurance contribution for employees, effectively increasing net pay. Revenue gaps will be addressed by increasing corporate profit taxes (specifically raising the rate from 12 percent to 15 percent for certain brackets), implementing a tax on vacant secondary properties, and retaining a larger share of various taxes previously allocated to municipalities. Additionally, the government aims to combat the shadow economy and improve the collection of assets from organized crime.

The reform also includes adjustments to the pension system, with pensions to be synchronized four times a year starting in 2027. Prime Minister Milojko Spajić stated the goal is to raise living standards and prevent youth emigration. However, the plan has faced criticism from the Center for Economic and European Studies (CEES), which warned that high wage costs could threaten employment in the private sector, particularly in the northern region, and from opposition groups who criticized the lack of public debate.

Entities

Aleksandar Vučić · Center for Economic and European Studies · Government of Montenegro · Institute of Alternatives · Milojko Spajić · Monstat · Montenegro · Serbia · Union of Employers of Montenegro

Claims

What the coverage asserts, and how many sources carry each claim.

[● 3 SOURCES] The plan involves abolishing the middle corporate income tax rate of 12 percent. radiotivat.com · www.rtvslon.ba
[● 3 SOURCES] The Union of Employers of Montenegro expressed concern regarding the announced wage increases. sindikatcg.me
[● 13 SOURCES] Minimum net wages will be 1,000 EUR for basic education, 1,250 EUR for secondary education, and 1,400 EUR for higher education. www.biznismagazin.rs · sindikatcg.me · radiotivat.com · novaekonomija.rs · informacijecrnagora.me · +6 more
[● 10 SOURCES] Pensions will be adjusted four times a year starting in 2027. sindikatcg.me · radiotivat.com · novaekonomija.rs · www.biznismagazin.rs · www.kiskegyed.hu · +2 more
[● 7 SOURCES] The wage increase program will affect more than 250,000 employees. novaekonomija.rs · ekonomiaonline.com · informacijecrnagora.me · www.kiskegyed.hu · szmsz.press
[● 4 SOURCES] The plan includes abolishing contributions for pension and disability insurance. radiotivat.com · informacijecrnagora.me · www.rtvslon.ba
[● 12 SOURCES] The Montenegrin government adopted a set of laws to implement the 'Euro model' starting January 2027. www.biznismagazin.rs · sindikatcg.me · radiotivat.com · novaekonomija.rs · informacijecrnagora.me · +4 more
[● 2 SOURCES] The Institute of Alternatives criticized the reform package for lacking public debate and impact assessments. informacijecrnagora.me