Pensioners to See Increase in Monthly Payments This Year

Pensioners in Montenegro can anticipate an increase in their monthly payments this year, as announced by Vladimir Drobnjak, the acting director of the Fund for Pension and Disability Insurance. The precise percentage increase will be confirmed at the end of January, following the release of official inflation and wage growth data by Monstat.

Drobnjak explained that retirees receiving minimal pensions, along with all other pensioners, will benefit from three scheduled annual adjustments. The first adjustment is expected in January, with the next set for February 20. Despite a lack of significant wage growth or inflation increases in recent months, Drobnjak cautioned against expecting substantial hikes in pension amounts. He stated, “Based on experience, we can make assumptions, but I would avoid projections until we have concrete figures.”

He further reassured that pension disbursements are secure for this year and the following years. The impact of reduced contributions to the Fund through the Europe USA 2 program has not adversely affected its operations, evidenced by the previous year’s performance.

Drobnjak pointed out that the budget for 2026 has been projected, showing a growth of 5.2 percent compared to last year’s budget, amounting to €843 million. This budget accounts for all regular pensions and the three annual adjustments.

Despite high inflation rates, Drobnjak highlighted that pension increases have consistently outpaced inflation. For instance, in 2022, the real growth of pensions was 2 percent when accounting for inflation, which increased to 7.6 percent in 2023, followed by 3.15 percent in 2024 and slightly over 8 percent projected for 2025.

He emphasized the improved living standards for citizens and pensioners in Montenegro, stating, “Anyone who is realistic and follows the numbers agrees with this, and while inflation is unpleasant, it affects everyone.” Drobnjak expressed confidence that the Fund for Pension and Disability Insurance will not face a growing deficit, suggesting that a crisis in its operations is not anticipated.

He concluded by noting that for the pension fund to be fully independent, without reliance on state budget transfers, Montenegro would need to significantly increase its workforce.