Montenegro’s Pension and Disability Insurance Fund (PIO) recorded total revenues of €394.18 million in the first half of 2025, marking a 10.27% increase compared to the same period last year. However, the fund reported a deficit of €232.32 million by the end of June — more than double the €112.24 million deficit recorded in 2024.
Revenue from pension contributions amounted to €161.85 million, a sharp drop of around 66% from €245.23 million collected in the same period in 2024. The deficit is largely covered by general budget funds.
The significant decline in contributions follows the reduction of payroll taxes introduced in January 2025 under the “Europe Now 2” reform, which reduced both employee and employer pension contributions to boost net wages. While employers had the option to transfer the tax savings to employees through higher salaries, this was not mandatory.
As of June 2025, 66,596 pensioners were receiving the minimum pension of €450, introduced through amendments to the Pension Law effective January 1, 2024. The Fund disbursed top-up payments to 18,688 beneficiaries to reach the new minimum threshold.
The total number of pension beneficiaries reached 131,491 in June, with 120,724 residing in Montenegro and 10,767 abroad. Compared to December 2024, the number of pensioners rose by 0.91%.
The PIO Fund noted a positive trend in pension structure, with a growing share of old-age pensions and declining shares of disability and other pension types — many of which are no longer granted under current legislation.
