Montenegro proposes ‘Euro model’ to raise minimum wages and pensions

Euro model minimum wage increase pension reform Montenegro economy fiscal deficit

The Montenegrin government has proposed the ‘Euro model’, a sweeping economic reform package aimed at significantly increasing minimum wages and pensions starting in 2027. Under the plan, minimum wages would be tiered based on education levels: 1,000 euros for basic education, 1,250 euros for secondary, and 1,400 euros for higher education. Additionally, the program proposes aligning pensions with wage growth four times a year and abolishing pension insurance contributions.

The proposal has met with mixed reactions from various sectors. While some analysts suggest the wage increases could stimulate consumption and economic growth, others warn of severe fiscal and economic risks. Critics, including the State Audit Institution and the Chamber of Crafts, have raised concerns regarding a potential inflationary spiral, the impact on small businesses, and the sustainability of the pension system. There are also warnings that the plan could create an annual budget deficit of 650 to 700 million euros.

Finance Minister Novica Vuković has noted that the Ministry of Finance is still analyzing the proposed laws, and he did not vote for the proposal during a recent government session. Meanwhile, President Jakov Milatović has called for a transparent public debate to assess the potential negative effects and risks of such large-scale reforms.

Entities

Chamber of Crafts of Montenegro · Dragoljub Nikolić · Government of Montenegro · Jakov Milatović · Milan Popović · Milojko Spajić · Montenegro · Novica Vuković · Pension and Disability Insurance Fund

Claims

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

[● 6 SOURCES] Minimum wages for secondary education would rise to 1,250 euros. tvpljevlja.me · www.aktuelno.me · cginfo.me · investitor.me · ziginfo.rs · +1 more
[● 2 SOURCES] Finance Minister Novica Vuković did not vote for the proposal during a recent government session. www.aktuelno.me · tvpljevlja.me
[● 10 SOURCES] The Euro model proposes increasing minimum wages based on education levels. etv.me · tvpljevlja.me · www.aktuelno.me · cginfo.me · www.pvinformer.me · +4 more
[● 6 SOURCES] Minimum wages for basic education would rise to 1,000 euros. tvpljevlja.me · www.aktuelno.me · etv.me · investitor.me · ziginfo.rs · +1 more
[● 5 SOURCES] The plan includes the complete abolition of pension insurance contributions. etv.me · tvpljevlja.me · www.portalanalitika.me · ziginfo.rs · mondo.rs
[● 2 SOURCES] The program aims to align pensions with wage growth four times a year. tvpljevlja.me · investitor.me
[● 6 SOURCES] Minimum wages for high education would rise to 1,400 euros. tvpljevlja.me · www.aktuelno.me · etv.me · investitor.me · ziginfo.rs · +1 more
[○ 1 SOURCE] The program could create a budget deficit of 650 to 700 million euros annually. tvpljevlja.me
[● 2 SOURCES] The Euro model could trigger an inflationary spiral and impact state borrowing capacity. etv.me · www.portalanalitika.me