Pensions in Montenegro will increase by 3.1% in May, based on wage growth and inflation data from the Statistical Office (Monstat), reports Vijesti.
The official announcement from the Pension Fund’s Management Board is expected soon, with the increased pensions scheduled for payment between June 18 and 20.
The average pension in April was €525, so the 3.1% adjustment means an increase of about €16 per pension.
Until now, the monthly pension payout amounted to €65.6 million. After the increase, this will rise by approximately €2 million.
The increase does not apply to pensioners receiving the minimum pension of €450, which is frozen until the start of next year. Around 60% of pensioners fall into this category, so roughly 40% will benefit from the raise.
According to the Law on Pension and Disability Insurance, pensions are adjusted three times a year—January 1, May 1, and September 1—based on four-month data on average gross wages and inflation. The final adjustment rate is calculated by weighing the higher indicator at 75% and the lower at 25%.
In January, pensions were increased by 6.85%, mainly due to wage growth linked to the rise of the minimum net salary from €450 to €600. With this May increase, the total pension growth for the year will reach 10%, mostly driven by inflation.
The next adjustment will be for September pensions, calculated in early October, based on wage and inflation growth from May to August.
The Pension and Disability Insurance Fund (PIO) reported revenues from contributions of €99.8 million for January to April, while expenditures for pensions and other rights totaled €259.9 million. The deficit of €160 million was covered by other state budget revenues.
As of April, Montenegro has about 127,900 pensioners, with 117,200 residing domestically and 10,600 abroad. There are also 3,500 users of other rights through the Fund, including disability benefits and war veteran allowances.
