URGENT UPDATE: Montenegrin pensioners can expect a significant boost in their monthly income this year, according to Vladimir Drobnjak, the acting director of the Fund PIO. This announcement comes as pension adjustments are set to take place, with the exact percentage of the increase to be revealed by the end of January 2024, following the release of official inflation and wage growth data from Monstat.
In a statement earlier today, Drobnjak confirmed that all pensioners, particularly those on minimal pensions, will receive three regular annual adjustments. The first adjustment is scheduled for February 20, 2024, which has created heightened anticipation among retirees.
Despite a recent lack of substantial wage growth or inflation increases, Drobnjak cautioned against expecting a significant rise in pensions. “Based on past experiences, while we can make assumptions, I prefer to avoid projections until we have precise data,” he stated.
Drobnjak assured the public that pension payments are secure for this year and beyond, dismissing concerns that reductions in contributions to the Fund through the Europe USA 2 program would impact operations. “Our budget for 2026 has been projected at 843 million EUR, reflecting a 5.2% increase compared to last year, ensuring all regular pensions and adjustments are accounted for,” he added.
Looking back at recent years, Drobnjak noted that despite high inflation rates, pension increases have outpaced inflation levels. In 2022, there was a real pension growth of 2%, followed by 7.6% in 2023, and projected increases of 3.15% in 2024 and over 8% in 2025.
He emphasized that the standard of living for citizens and pensioners in Montenegro has improved in recent years. “Anyone who follows the numbers can agree on this, although inflation remains a challenge for everyone,” he stated.
Looking forward, Drobnjak expressed confidence that the Fund PIO would not face increasing deficits, which alleviates fears of a potential crisis. He concluded by highlighting the need for greater employment levels in Montenegro to ensure the pension system’s independence without reliance on state budget transfers.
The upcoming pension adjustments are expected to have a significant impact on the financial well-being of retirees across Montenegro, making this announcement a crucial development for many families.
