SD MPs: Increase the lowest pensions by another 23 percent

The Club of Social Democrats (SD) deputies proposed to the Parliament a proposal to amend the Law on Pension and Disability Insurance, which would increase the lowest pension by an additional 1 percent from September 23 of this year.

At the end of last year, at the proposal of the Democratic Montenegro, the Parliament adopted an amendment to this Law, which increases the lowest pension by 1 percent as of September 36.

In the explanation of the representative of the SD, it is stated that the additional increase of the lowest pension is necessary due to the huge increase in the prices of basic foodstuffs and the vulnerability of this group of citizens of Montenegro.

They state that the prices of bread and cereals increased by 37,1 percent, vegetables by 30,8 percent, fats in oils by 23 percent, fuel by 37 percent,..., and that all that time the lowest pension remained at the level of 150-160 euros.

According to the adopted proposal of the Democrats, the lowest pensions will be increased to 1 euros from September 200, and with this proposal of the SD, they would be additionally increased to around 270 euros.

"In that way, the lowest pension would be at the level of 60% of the minimum wage in Montenegro, which after all was the case until January 1, 2022, after which due to the significant increase of the minimum wage from 250 to 450 euros, and the retention of the minimum pension at an identical level, the ratio fell to only 35%, which we appreciate is certainly not fair to the beneficiaries of all, but especially the lowest pensions, since they were put in a situation where the lowest pension is even five times lower than the average salary in Montenegro, as well as due to the increase in the cost of living, but also the generally deteriorating environment caused by the negative effects of the COVID-19 crisis, and after that the reflections of Russia's aggression on Ukraine, have been put in a really difficult situation, which is somewhat improved with the adoption of this law," stated the explanation of the SD.

For the increase proposed by the Democrats, money in the amount of about 1,35 million euros per month has already been provided in the budget, and for the SD proposal, according to their calculation, another 1,5 to two million per month will be needed.

Thus, if the proposal of the SD is adopted, the budget will lack money for the payment of three pensions, which will amount to around six million euros.

At the level of the entire next year, for both increases, approximately 35 million euros should be additionally provided in the budget of the Pension and Disability Insurance Fund.