Pensions for May will see a 3.1 percent increase, based on the wage growth and inflation data provided by the Statistical Office Monstat, according to “Vijesti”.

The Board of Directors is expected to announce official details in the coming days, with the increased May pension payments slated for disbursement between June 18th and 20th.

The average pension for April stood at 525 euros, meaning this percentage adjustment will translate to approximately 16 euros. Previously, the monthly pension expenditure was 65.6 million euros; this rise will push that figure up by around two million euros.

This adjustment will not apply to pensioners receiving the minimum pension of 450 euros, which is frozen until early 2026. These individuals represent about 60 percent of all pensioners, meaning only about 40 percent will benefit from this increase.

According to the Pension and Disability Insurance Act, pensions are adjusted thrice yearly on January 1, May 1, and September 1. Adjustments are based on four-month averages of gross earnings and price changes compared to the previous four months. The higher figure is multiplied by 0.75, while the lower is multiplied by 0.25, with the total providing the final adjustment percentage.

The January adjustment resulted in a 6.85 percent pension increase, attributed to a rise in gross wages in the last four months of the previous year, following the minimum net wage increase from 450 to 600 euros. Consequently, the May adjustment—primarily reflecting inflation—brings the cumulative increase to ten percent.

The next adjustment scheduled for September will be calculated in early October, reflecting gross wage growth and inflation from May to August compared to the prior four months.

Between January and April, the Pension and Disability Insurance Fund generated 99.8 million euros in contributions but incurred expenses of 259.9 million euros for pensions and other benefits. This resulted in a four-month deficit of 160 million euros, covered by other state taxes and duties.

As of April, the Pension and Disability Insurance Fund reports approximately 127.9 thousand pensioners in Montenegro, with 117.2 thousand residing in the country and another 10.6 thousand overseas. Additionally, there are around 3,500 beneficiaries of various other rights through the Fund, including 2.9 thousand for physical compensation, 506 for caregiving assistance, and three beneficiaries of World War II memorial benefits.

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