Pensioners in Montenegro can expect an increase in their monthly income this year, according to Vladimir Drobnjak, the acting director of the Pension and Disability Insurance Fund (Fund PIO). The precise percentage of this increase will be determined at the end of January, following the release of official data on inflation and wage growth by Monstat, the national statistical office.
Drobnjak announced that all pensioners, including those receiving minimal pensions, will benefit from three annual adjustments to their pensions. The first adjustment is expected in January, with the next scheduled for February 20. He emphasized that while the adjustments are in place, the recent lack of significant wage growth and inflation should temper expectations for a substantial increase.
Despite these constraints, Drobnjak assured that pension payments are secure for both this year and the following years. He clarified that the reduction in contributions to the Fund through the Europe USA 2 program has not adversely affected its operations, as confirmed by last year’s financial results.
The budget for 2026 has already been projected at €843 million, representing a 5.2 percent increase compared to last year. This budget accounts for all regular pensions and includes the three annual adjustments.
Drobnjak noted that despite high inflation rates, pension increases have outpaced inflation over the past few years. He provided specific figures, stating that real pension growth was recorded at 2 percent in 2022, 7.6 percent in 2023, and is projected at 3.15 percent for 2024, with expectations exceeding 8 percent for 2025.
He observed that the living standards of citizens and pensioners in Montenegro have improved in recent years, and he acknowledged that while inflation is a challenge, it affects everyone.
Looking ahead, Drobnjak expressed confidence that the Fund PIO will not experience a deficit, allowing it to maintain stable operations without reliance on government budget transfers. He concluded by stating that for the Fund to be entirely independent, Montenegro would need to double its number of employed individuals.
