Nišić: The average pension until the end of 2024 will be 550 euros

The minister said that a detailed analysis of the status of the so-called proportional pensioners is being done, and that she will propose a solution when it is finished

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Photo: Flickr Government of Montenegro
Photo: Flickr Government of Montenegro
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

The minimum pension will amount to 450 euros from January and will be 52 percent higher than now, while the average pension at the end of next year, due to the increase in the minimum and with regular adjustments, will rise from the current 397 to around 550 euros, or by 39 percent, the minister said. of Labor and Social Welfare, Naida Nišić, at today's press conference on the occasion of proposing changes to the Pension and Disability Insurance Act (PIO).

She stated that 105 million euros will be needed to increase the minimum pension, and that their increase is the first set of measures to improve the standards of the most vulnerable citizens.

She also said that a detailed analysis of the status of the so-called proportional pensioners is being done, and that she will propose a solution when it is finished.

The employee of the Pension and Disability Insurance Directorate, Irena Obradović, said that the beneficiaries of these pensions received this right based on interstate agreements and that the amounts of their pension parts in the countries where they worked are determined based on the length of investment in the pension fund and the amount of the base. She said that it is necessary to analyze whether it is fair that someone with a few years of service in Montenegro and payments to the PIO Fund receives the amount of the minimum pension.

Minister Nišić stated that the limit of the minimum pension will not increase for the next two years with regular adjustments, while other pensions above that amount will.

When asked by "Vijesti" whether they checked whether it was constitutional to harmonize some pensions and not others, so that it would not happen that the decision would later fall before the Constitutional Court, the minister said that they did not have time to check and that the position of the ministry is that it is not legally questionable that she considers it to be in accordance with the Constitution.

"Whether the proposal of the Law is constitutional or not can only be checked when it is adopted. This proposal will be before the parliamentary Legislative Committee, which checks its legality. We believe that it is legal. How many years should beneficiaries with a minimum pension of 295 have to wait to the amount of their pension increases to 450 euros through regular adjustments," said Nišić.

Naida Nišić
photo: Flickr Government of Montenegro

When asked why they did not give a positive opinion on the proposal to amend the PIO Act on more favorable retirement for the remaining group of defunct metal processing factories and mines, Obradović replied that similar amendments to the law only for this group of former workers had already been adopted, and that it was an injustice towards workers with the same problems from other industries.

He stated that the proposal was rejected because it did not have a fiscal analysis of how much the PIO Fund budget would cost. Obrodović also stated that workers from this industry already have a benefited work experience.

Minister Nišić asked all deputies not to propose changes to the law without a fiscal assessment.

He also stated that changes in the law now allow retirement with 40 years of effective service, regardless of age, and that an error has been corrected, so pensions will be adjusted three times a year based on statistical data on wage growth and inflation based on four-month data. "Due to the decision of the Constitutional Court, the retirement age has been equalized to 65 for both sexes with a minimum of 15 years of service. All transitional norms that provide the possibility to retire before that deadline, which were valid until now," said Nišić.

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