The Minimum Wage in Montenegro will be Increased from 222 to 250 Euros

An increase in the minimum wage from 222 to 250 euros has been announced since July. It costs employers 46 euros more, but they will negotiate with them to reduce duties

The minimum wage in Montenegro will be increased from 222 to 250 euros from July 1 this year, and until then negotiations will be held with employers on reducing payroll taxes or introducing a non-taxable part of wages, “Vijesti” has learned in the ruling coalition.

Representatives of all parliamentary clubs of the ruling coalition submitted to the Assembly yesterday a proposal for amendments to the Labor Law, which defines that the minimum wage cannot be less than 250 euros.

The minimum wage is now 222 euros.

On the minimum net salary of 222 euros, the employer pays another 142 euros of various duties, ie the total minimum salary costs him 364 euros.

If the minimum amount was increased to 250 euros, the employer would pay another 160 euros in duties, or a total of 410 euros.

In fact – for the amount of the projected growth of the net minimum wage of 28 euros, the employer would pay another 18 euros in duties or 46 euros in total.

The Social Council has not been previously consulted on this bill. When the minimum wage was last increased in July 2019, it was agreed in principle by the social partners to continue increasing it in the coming years while reducing payroll taxes.

At that time, health insurance contributions were reduced by two percent of gross earnings.

Montenegro is the only country that does not have a non-taxable part of the salary
Montenegro is the only one in the region, and in Europe, that does not have a non-taxable part of its earnings. Employers have been asking for the introduction of this relief for years, but the previous government refused, while, according to “Vijesti”, the new government is ready to talk about it.

The non-taxable part of the salary in Serbia now amounts  about 155 euros.

According to the data from the end of 2019, 14 thousand employees were insured for the minimum wage, and another 40 thousand for the amount between 222 euros and 250 euros.

The deputies who signed this proposal state in the explanation that the current amount of the minimum wage is only a third of the minimum consumer basket.

Higher old age benefits
“We are convinced that the proposed increase will not significantly increase costs in either the private or public sector. The increase in the amount of the minimum wage will have the effect of a significant increase in budget revenues based on the collection of taxes, surtaxes and contributions paid on wages “, it is stated in the explanation.

Yesterday, the deputies of the ruling majority proposed changes which increase the old-age benefits for agricultural producers older than 60 for women and 65 for men from 50 to 70 percent of the minimum pension.

That would mean an increase from 72 to 102 euros.

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The Minimum Wage in Montenegro will be Increased from 222 to 250 Euros - /10


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