Montenegro’s Social Council has announced plans to place an initiative for an annual bonus on the agenda, aimed at addressing the financial needs of both employees and pensioners. This development comes in response to increasing concerns regarding the lack of thorough consultations before proposing legislation related to labour issues.
The Social Council expressed apprehension that lawmakers often submit bills without adequate dialogue with social partners, undermining established agreements. In a statement, the Council highlighted its constitutional role in aligning the social status of employees and stressed the importance of fostering social dialogue, which is essential for societal cohesion and economic needs. The message was co-signed by Naida Nišić, the Minister of Labour, along with key representatives from employer and trade union organizations, including Slobodan Mikavica, Srđa Keković, and Duško Zarubica.
The Council underscored that enhancing social dialogue is crucial for closing Chapter 19 on social policy and employment, as Montenegro frequently faces criticism from the European Commission for enacting laws in these sectors without engaging social partners. One such proposal was recently introduced by Nik Đeljošaj, the Deputy Prime Minister for Economic Affairs, which outlines a plan for a thirteenth salary and pension bonus.
The proposed law, championed by Artan Cobi, is currently under parliamentary procedure. If approved, citizens would receive a bonus equivalent to half the minimum wage, amounting to 300 euros for employees and 180 euros for pensioners, based on a minimum wage of 600 euros and a minimum pension of 450 euros. As of October 2023, the average pension in Montenegro was reported at 554 euros, while the average salary exceeded 1,000 euros.
In response to this initiative, the PES parliamentary group has urged Đeljošaj to align the proposal with the Social Council’s recommendations and ensure its sustainability. They emphasized that prior consultation is essential, particularly given that Đeljošaj is also a member of the Council, and it has been standard practice in the development of previous programs.
Following the Social Council’s reaction, the Albanian Forum expressed readiness to bring this initiative to the Council’s agenda. They mentioned having a legislative package aimed at ensuring revenue, which includes amendments to laws related to VAT and administrative fees. This new legislation would impose obligations on large international digital platforms to contribute through VAT and a special digital tax.
The proposal aims to provide an annual bonus that would be exempt from taxes and contributions, alleviating any additional fiscal burden on employers. The goal is to enhance employee satisfaction, curb talent outflow, and stimulate consumer spending, which could, in turn, boost state revenue through increased VAT.
Despite these ambitions, the initiative has drawn skepticism from economic analysts. Mirza Mulešković raised concerns about Montenegro’s economic capacity to handle such financial measures at this time. He acknowledged the social rationale behind the proposal, given the rising cost pressures on pensioners and employees, but questioned its feasibility. Mulešković warned that the law could exacerbate the difficulties faced by many businesses that are already struggling financially.
The proposal’s path forward remains uncertain, as stakeholders await further discussions within the Social Council and the parliamentary process. The outcome will significantly impact both employees and pensioners in Montenegro, as well as the broader economic landscape.
