Montenegro's Euro model proposes significant wage and pension increases

Euro model minimum wage increase Montenegro economy pension reform Milojko Spajić

Montenegrin Prime Minister Milojko Spajić has defended the 'Euro model,' a government economic program designed to increase minimum wages and pensions to prevent emigration and boost living standards. Starting in January 2027, the model proposes minimum net salaries based on education levels: 1,000 euros for primary education, 1,250 euros for secondary, and 1,400 euros for higher education. The plan also includes abolishing certain pension and disability insurance contributions and adjusting pensions four times a year to match salary growth.

The proposal has met with varying reactions. The URA party, led by Dritan Abazović, has criticized the government's pension projections, arguing that average pensions should be at least two-thirds of the average salary rather than the proposed 40 percent (approximately 600 euros). Labor unions, including the Union of Free Trade Unions of Montenegro, are pushing for an increase in the coefficient value from 90 to 100 euros to boost wages.

Economic concerns have been raised regarding the impact on municipal and state-owned enterprises. Preliminary analyses from companies such as 'Sports Facilities' suggest that salary costs could rise by as much as 32 percent, posing a significant financial burden. Additionally, analysts have noted the need for improved working conditions alongside wage increases to ensure long-term economic stability and successful integration into the European Union.

Entities

Dritan Abazović · Euro model · Europe Now Movement · European Union · Government of Montenegro · Milojko Spajić · Montenegro · Nikola Zirojević · Novica Vuković · URA · Union of Free Trade Unions of Montenegro

Claims

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

[● 5 SOURCES] The Euro model proposes minimum net salaries between 1,000 and 1,400 euros starting January 2027. www.vecernji.ba · www.vijesti.me · borba.me · www.pvinformer.me · www.sjevercg.me
[● 4 SOURCES] The URA party proposes that the average pension should be at least two-thirds of the average salary. informacijecrnagora.me · www.portalanalitika.me
[● 3 SOURCES] The Euro model is sustainable according to all analyses. borba.me · www.vijesti.me · www.vecernji.ba
[○ 1 SOURCE] Under the government plan, pensions would be adjusted four times a year starting in 2027 to track salary growth. www.vecernji.ba
[○ 1 SOURCE] The 'Moj dom' tenants' association calls for the regulation of the rental market to bring rental income into legal flows. onogost.me
[DISPUTED] The government's current pension plan aims for approximately 40 percent of the average salary, or about 600 euros. informacijecrnagora.me · www.portalanalitika.me
[● 4 SOURCES] Minimum net salaries will be 1,000 euros for primary education, 1,250 euros for secondary, and 1,400 euros for higher education. www.vecernji.ba · www.vijesti.me · www.pvinformer.me · www.sjevercg.me
[○ 1 SOURCE] The government plans to abolish contributions to pension and disability insurance. www.vecernji.ba
[● 2 SOURCES] The Sports Facilities company estimates that salary costs will increase by approximately 32 percent. www.pvinformer.me · www.sjevercg.me