The average net salary in October, according to the "Europe Now 2" program, increased by only 7,4 percent, even though it was announced a year ago that all salaries would increase by 25 percent, as the then calculator of the Europe Now Movement showed.
This did not fulfill the main pre-election promise of PES and the Prime Minister Milojko Spajić that the average net salary 12 months after the election of the new government will be over one thousand euros, although in the meantime the minimum salary has been increased from 450 to 600 euros and the contribution to pension insurance has been halved, which should statistically have led to this increase.
High salaries in five areas and two municipalities
Detailed data on earnings for October, published by Monstat, also show that out of 19 sectors of activity in only five the average net earnings are over a thousand euros. In the same sectors, banking, communications, real estate, electricity supply and mining, the average net earnings in September, before "Europe Now 2", was over a thousand euros. That is, the increase of the minimum wage by 33 percent and the abolition of half of the contribution did not affect the fact that no new sector exceeded the promised limit of the average wage of one thousand euros.
Also, out of 25 municipalities, in only two the average net earnings in October were over the promised thousand euros, namely in Tivat 1.169 and Zeta 1.071 euros, in which salaries were over a thousand euros even before "Europe Now 2".
This indicates that those who devised "Europe Now 2" did not calculate well, that is, they calculated by how much the minimum wage should be increased and by how much the contributions should be reduced in order to statistically arrive at an average net wage of one thousand euros. The average salary in September was 877 euros and they needed an increase from "Europe Now 2" of at least 14,1 percent to reach the set limit, and they got an increase of 7,4 percent, i.e. they made an error of almost 50 percent of the required growth.
Monstat, when publishing data on projected earnings, added an explanation last week that some employers had not yet paid their October wages, which is why the effects of the "Europe Now 2" program are not fully part of that report. That is, this report did not include the calculated and already paid wages. Monstat has not given such explanations until now.
They also guaranteed the sustainability of the budget
The same people who claimed that this increase in the minimum wage and the reduction of contributions will lead to a projected net profit of one thousand euros, now guarantee that the state budget of the PIO Fund for the next year will be sustainable despite the reduction of contributions for PIO from 20,5 to 10 percent of the gross salary , as well as that the economy will be able to pay increased minimum wages.
Prime Minister Spajić promised a year ago that he would resign if in 12 months the average salary was not one thousand euros, while at the press conference when the budget proposal for the next year was presented, he said that there was no need for a risk analysis for measures from the "Europe Now 2" program. and that he gives a personal guarantee that the state finances will be sustainable.
The data also show that the average net salary for the period January-September this year increased from 814 to 877 euros or by 7,7 percent, without increasing the minimum wage or reducing contributions and any other duties on wages. At this rate, the average net salary would reach the amount of one thousand euros in a year and a half without reducing contributions - a measure that the World Bank, the International Monetary Fund and the European Commission have said is risky and could threaten public finances.
The biggest growth for "consultants"
Monstat data show that in October, the average net salary increased the most in the area of "professional, scientific and technical activities", from 816 to 951, or by 16,5 percent. 16,5 thousand employees work in this area, and it includes all companies registered for consulting activities, which are most often used by foreigners when they establish companies in Montenegro. In addition to the fact that a significant number of these companies were founded in order for that foreigner and his family members to obtain the right to stay, often the employed founder and family members were registered for minimum wages. This is why this area, despite its sounding name, had average wages below average, and it was precisely this increase in the minimum wage that influenced the fact that there is the highest percentage growth here.
The second area with salary growth in October was banking and insurance, where an increase of 14 percent was recorded, that is, from 1.380 to 1.573 euros. In October, 4.710 employees worked in this area, or 1,8 percent of the total number of employees in that month. This shows that high wages in this sector do not have a big impact on the national average due to the small number of employees. In banking, there were very few employees with minimum wages, and this increase, according to the information of "Vijesti", was due to the fact that most banks decided to use the reduction in the employer's share of contributions for an additional increase in his net earnings, even though this was not a legal obligation. .
The October growth of net earnings of 13,9 percent (from 1.121 to 1.271 euros) was recorded in the field of information and communications, which has 11 employees. This area includes telecommunication operators, internet and cable television providers, media... Also, part of the telecommunications companies decided to additionally increase the net earnings of employees based on the reduction of contributions at the expense of the employer.
The lowest growth in mining and utilities
The lowest wage growth in October was recorded in the field of mining of only 1,4 percent. This area includes three Montenegrin mines and quarries, with a total of 1.895 workers. Why there was such a low growth in earnings in this industry (1.053 to 1.068 euros) is difficult to say because it is illogical. Due to the mere conversion of part of the gross salary at the expense of the employee to his net salary, there should have been an increase of about six percent.
It is similar in the area of water supply and waste removal (municipal economy), where a growth of 3,1 percent was recorded, i.e. from 846 to 872 euros. The branch collective agreement for this activity with six thousand workers significantly increased wages last year, so that their minimum wage was already close to 600 euros. The problem is that since the beginning of this year, the prices of water and garbage collection have not been increased, and utility companies barely pay their wages. Here it may be the case that a significant number of these companies did not even pay their October earnings.
There is no average net income of one thousand euros even in the most significant part of the public sector. In state administration and defense with 23 employees, the average October salary is 996 euros, in healthcare with 15 employees, the average salary is now 983 euros, and in education, where 18 employees work, the average is 955 euros.
In the processing industry, an area that should be the basis of the economy, the average October salary was 751 euros, that is, almost 250 euros less than the state administration.
Pensions could increase by three percent in January
The average gross salary for October was 1.137 euros, which is 3,1 percent higher than September's, which was 1.102 euros.
The average gross salary is important because pensions are adjusted according to their growth and not the growth of net earnings. Thus, during the January adjustment, next year, they will compare the growth of gross wages in the period September-December this year compared to the period May-August this year. According to the formula, that percentage would be multiplied by 0,75 percent, assuming that the second inflation adjustment factor currently has a minimal negative value.
So, for example, an increase in gross earnings of four percent would have an impact on the increase of pensions by three percent, that is, the current average pension of 503 euros would have an increase of 15 euros.
Earlier, the Europe Now Movement and the Government promised that all pensions would increase by 50 to 60 euros in January, because they expected that the measures from their program would affect the growth of gross wages by ten percent.
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