According to the draft of the Economic Reform Program (ERP) for 2024-2026, discussed in a public forum by the Ministry of Finance yesterday, the average salary in 2024 is projected to increase by five percent. This matches the forecasted inflation rate, indicating that there will be no real salary growth next year. The same document predicts a four percent increase in average wages for 2025, accompanied by an inflation rate of 3.4%. In 2026, a four percent increase in income is anticipated, along with a price growth of 2.5%.
The pre-election program of the current Prime Minister, Milojko Spajić, pledged that within a year of taking office, the minimum wage would be 700 EUR, while the average wage would reach 1,000 EUR. As the new government was elected at the end of October, according to this promise, these salary levels were expected to be achieved by November of the following year.
According to the current forecasts from the ERP, the average salary at the end of the year will be 843 EUR, and with all three planned increases by the end of 2026, it will reach 911 EUR.
To achieve an average salary of 1,000 EUR by November of the next year, there would need to be a 25% increase over 12 months. According to these predictions, this level will not be reached even in three years.
The adoption of the Economic Reform Program is a commitment of Montenegro arising from the accession negotiations with the European Union. It is submitted to the European Commission (EC) for assessment each year, and the EC monitors its implementation. Based on the fulfillment of obligations outlined in the ERP, the EC evaluates how much progress Montenegro has made in economic reforms.
As announced during the public discussion, the government will adopt the ERP by the end of the year and submit it to the Parliament. The Parliament, however, does not decide on it but only becomes acquainted with it, after which it is sent to the European Commission.
While the government promises absolute employment and continued economic growth for domestic purposes, which is expected to fill the state budget and lead to a significant rise in citizens’ living standards, the document submitted to the European Commission mentions symbolic employment growth, slight productivity growth, and a symbolic increase in wages just above the inflation rate.
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