Pensioners to See Monthly Income Increase in Montenegro

Pensioners in Montenegro can anticipate an increase in their monthly income this year, as announced by Vladimir Drobnjak, the acting director of the Pension and Disability Insurance Fund (PIO). This statement was reported by RTV Podgorica. The exact percentage of the increase will be disclosed at the end of January, following the release of official inflation and wage growth data from the statistical office, Monstat.

Drobnjak indicated that those receiving minimal pensions, along with all other pensioners, can expect three regular annual adjustments. The first adjustment is scheduled for January, with the next anticipated on February 20. Despite the lack of significant wage increases or inflation growth in the recent short-term period, he advised against expecting a substantial rise in pension amounts.

He stated, “On the basis of experience, we can make assumptions, but I would avoid projections. We are waiting for the moment to accurately announce how much it will be.”

In addressing concerns about pension payments, Drobnjak reassured that disbursements are secure for this year and the coming years. He also noted that reductions in contributions to the fund, as part of the Europe USA 2 program, have not adversely impacted its operations. This stability was confirmed during the previous year.

“Our budget for 2026 was projected at the end of last year, with an increase of 5.2 percent compared to last year’s budget, amounting to 843 million euros. This budget accommodates all regular pensions and the three annual adjustments,” he emphasized.

Despite high inflation rates, Drobnjak observed that pension increases have remained above the inflation level. In 2022, the real growth of pensions was 2 percent after accounting for inflation, followed by 7.6 percent in 2023, 3.15 percent in 2024, and projected growth of just over 8 percent in 2025.

He highlighted that the living standards of citizens and pensioners in Montenegro have improved over the past few years. “Anyone who is realistic and follows the numbers agrees with this, though inflation is certainly uncomfortable for everyone,” Drobnjak noted.

Looking ahead, he does not foresee an increase in the deficit of the PIO Fund and, thus, does not predict a crisis in its operations. He concluded that for the pension fund to achieve full independence without reliance on state budget transfers, Montenegro would need to see a significant increase in employment numbers.