The Prime Minister of Montenegro announced an average salary of 1,000 euros
Montenegrin Prime Minister Milojko Spajić announced that the average salary in Montenegro will soon be 1,000 euros, that contributions to the Pension and Disability Insurance Fund (PIO) will be reduced, which will not be abolished, that the value added tax, which amounts to 21 percent, will not be increased and that there will be no need for responsibility for the implementation of those measures.
“We are reducing income from contributions and compensating with various other measures. The minimum wage will be 700 euros on average,” Spajić said at the press conference on the occasion of the presentation of the Fiscal Strategy for the period 2024-2026.
The minimum salary of 450 euros should be increased to 600 euros for employees who have completed high school and to 800 euros for those who have a university degree.
Contributions for pension and disability insurance (PIO) from the current 20.5 percent will be halved, as the employer’s portion of 5.5 percent will be abolished, and the employee’s portion will be reduced from 15 percent to around 10 percent.
By reducing the contribution, the state would lose an income of 107 euros per employee with a daily salary. Part of that money would be compensated by the budget at the expense of increasing the collection of taxes and contributions based on the increase of minimum wages to 600 and 800 euros.
Spajić said that the “Europe Now 2” program refers to 300,000 employees in Montenegro who will have significant salary increases.
He added that the fiscal situation has never been better, that the debt has been reduced from 100 percent to 55 percent of the gross domestic product.
He announced that it will not be necessary to borrow a euro for the implementation of these measures. “Every euro will go to infrastructure projects or to pay off old debt,” Spajić said.
Spajić also announced that the VAT rate will not increase and will remain at 21 percent.
Source: Beta
Photo: Pixabay, VladaCG
Source: bizlife.rs
