Montenegro has centralised salary administration for approximately 37,000 public-sector employees across 413 institutions, with the Finance Ministry extending the system to the Ministry of Defence and the armed forces as part of the latest expansion. The most recent phase brought around 2,200 employees from the defence sector into the platform, widening the government’s coverage of public-sector employment and payroll expenditure.
The system has grown considerably since October 2023, when it covered 11,133 employees across 147 institutions. The expansion has brought a substantially larger share of public-sector payroll administration under a common framework. The Finance Ministry plans to incorporate approximately 30 healthcare institutions employing around 10,000 people by the end of 2026. If completed as planned, the system would cover roughly 46,500 employees across 450 institutions.
The expansion comes as Montenegro prepares its 2027 budget and considers further salary reforms that could increase labour costs across central and local government. Public-sector wages account for a major share of government expenditure, making the management of salaries and related employment costs an important element of fiscal planning.
Centralised payroll administration provides the Finance Ministry with a common platform for monitoring employee numbers, salary grades, supplements and other employment-related expenses across participating institutions. Consolidating this information can also help identify discrepancies in payroll records and provide a clearer basis for estimating the budgetary effects of proposed wage increases. The reform does not automatically reduce the number of public employees or lower total payroll expenditure. Its primary purpose is to strengthen oversight, standardise administration and improve visibility over costs previously managed separately by individual institutions.
Broader institutional coverage is also intended to support medium-term budget planning by providing policymakers with a more comprehensive picture of public-sector employment expenditure. This information is relevant when assessing how salary decisions affect recurring budget obligations and the government’s overall wage bill. The planned inclusion of healthcare institutions would further extend the centralised system’s reach, bringing the projected total to around 46,500 employees and 450 institutions by the end of 2026.
