Pensioners in Montenegro can anticipate an increase in their monthly benefits this year, according to Vladimir Drobnjak, the acting director of the Pension and Disability Insurance Fund (PIO Fund). The specific percentage of the increase will be revealed at the end of January, once official inflation and wage growth data is published by Monstat.
Drobnjak confirmed that all pensioners, including those with minimal pensions, will receive three regular annual adjustments. The first adjustment is expected in January, with a subsequent adjustment scheduled for February 20, 2024. While recent trends show minimal growth in wages and inflation, he cautioned that a substantial increase should not be anticipated this year.
“Based on our past experience, we can make some assumptions, but I would prefer to avoid projections until we get the exact figures,” Drobnjak stated.
Despite concerns about funding, Drobnjak assured that pension payments remain secure for this year and the next. He noted that reductions in contributions to the PIO Fund, part of the Europe USA 2 program, have not adversely affected its operations. The fund’s financial stability was confirmed throughout the previous year.
In terms of budgeting, Drobnjak highlighted that the budget for 2026 has been projected at €843 million, reflecting a 5.2 percent increase compared to last year. This budget includes provisions for all regular pensions and the planned annual adjustments.
Drobnjak acknowledged that, despite high inflation rates, pension increases have consistently outpaced inflation. In 2022, the real growth in pensions was 2 percent after accounting for inflation, while in 2023 it reached 7.6 percent. The projected growth rates for 2024 and 2025 are 3.15 percent and just above 8 percent, respectively.
He emphasized that there has been a noticeable improvement in the living standards of citizens and pensioners in Montenegro over the last few years. “Anyone who is realistic and follows the numbers agrees with this, and while inflation is unpleasant, it affects everyone,” Drobnjak added.
Looking ahead, he expressed confidence that the PIO Fund would not face a growing deficit, which alleviates concerns about a crisis in its operations. He concluded that for the fund to achieve complete independence without requiring transfers from the state budget, Montenegro would need to double its number of employees.
