The collection of contributions for pension and disability insurance equaled the amount needed for the payment of pensions, which is the first time since the 80s of the last century that the PIO Fund is sustainable, "Vijesti" has learned.
In April, the collection of contributions amounted to 43,5 million euros, while 43,6 million euros were needed to pay pensions. In May, 42 million euros were collected from contributions.
Ten years ago, in 2013, 58 percent of the money needed to pay pensions was provided from the collection of contributions, and in 2019, 78 percent. The state used to compensate the PIO Fund for the missing part of the money from other budget revenues, and now that money can be used for other needs.
The state may not use any excess contributions from pension insurance for any other purpose than for the payment of pensions. In the next two days, the government and the PIO Fund should make a decision on the regular adjustment of pensions based on wage growth and inflation in the first four months of this year, which would mean an increase in pensions by about 5,5 percent, but also in connection with the announced extraordinary adjustment of pensions for additional about three percent.
The average pension now amounts to 374 euros and with this increase it would be higher by about 30 euros. This pension increase would increase the expenses of the PIO Fund by around 3,4 million euros per month.
The collection of contributions started to grow significantly during the last year, and the growth continued this year as well. From the beginning of the year to the end of May, 177 million euros were collected from pension insurance contributions, or 50 million more than in the same period last year, and 30 million more than the budget plan for this year.
The increase in the collection of contributions was influenced by the increase in wages and the number of employees, as well as the reduction of the gray economy in the area of work and salary payments.
The number of employees at the end of April was, according to the data of the Monstat Administration of Statistics, 238 thousand, which is 21 thousand more than in the same month last year, and 30 thousand more than in April 2019.
The average net salary in April was 786 euros, which is 79 euros more than last year, and 275 euros more than in the same month of 2019.
In the summer months in Montenegro, the number of workers increases due to the season, so a continuation of the trend of increasing income from contributions for pension and disability insurance can be expected.
Surplus income of 117 million
The net collection of total revenues for the first five months amounted to 984 million euros, and, according to "Vijesti" information, it is 235 million more than last year, and 117 million more than the collection plan for that year.
Higher collection compared to the plan was realized for almost all items.
Collection of value added tax (VAT) amounted to 388 million or 35 million more than the plan. 127 million euros, or 30 million more, came into the budget from corporate profit tax, 108 million euros, or 11 million more than planned, from excise taxes, 193 million euros, or 34 million more than planned, from total contributions,...
The Government previously announced that the excess revenue will be used to repay old debts in order to reduce new debts and the total public debt.
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