UPDATE: Pensioners in Montenegro can expect an increase in their monthly income this year, according to Vladimir Drobnjak, the acting director of the PIO Fund. This announcement comes amid anticipation of official inflation data from Monstat, expected at the end of January 2024.
Drobnjak emphasized that pensioners will benefit from three regular annual adjustments, with the first scheduled for February 20, 2024. While he confirmed that adjustments are on the way, he cautioned against expecting substantial increases due to recent trends in inflation and wage growth.
“Based on recent experience, we should not expect a significant increase,” Drobnjak stated. He noted that fluctuations in inflation and wages have been minimal in the short term. However, he reassured pensioners that payments remain secure for this year and beyond.
The projected budget for the PIO Fund in 2026 is set at 843 million EUR, marking a 5.2 percent increase compared to last year. This budget will cover all regular pensions and the three scheduled adjustments. Drobnjak clarified that despite the high inflation rates, pension increases have outpaced inflation in recent years.
In 2022, the real pension increase was 2 percent after factoring in inflation. In 2023, it rose to 7.6 percent, with projections of 3.15 percent in 2024 and over 8 percent in 2025.
Drobnjak expressed optimism about improving living standards for citizens and pensioners in Montenegro, stating, “Anyone who is realistic and follows the numbers agrees with this.” He acknowledged the challenges posed by inflation but remained hopeful about the stability of the PIO Fund, asserting that a growing deficit is not anticipated.
To ensure the PIO Fund’s independence from state budget transfers, Drobnjak highlighted the need for a significant increase in employment within Montenegro. The outlook remains positive, with pensioners encouraged to look forward to upcoming adjustments.
Stay tuned for further updates as the situation develops.
