Prime MinisterMilojko Spajićhas announced a new government salary-increase model, the “Euro Model,” which will be implemented from January 2027. The model envisages a minimum salary of 1,000 EUR for employees in positions requiring primary and lower-level education, 1,250 EUR  for employees in positions requiring secondary education, and a minimum salary of 1,400 EUR for positions requiring higher education.

At its session held earlier today, the Montenegrin Cabinet adopted a set of laws that will enable the implementation of the new salary-calculation model from January 2027.

You can find the Prime Minister’s statement below.

In the modern world, countries are not divided into large and small, but into those that adapt to the current moment while rapidly planning for the future, and those that are constantly burdened by the problems of the past.

For a long time, Montenegro was trapped in a labyrinth of a feudal low-salary economy, as well as the Balkan nationalism and wars—a system in which work did not pay off and was not encouraged. Discouraged, young people left the country in waves.

After many years, we have begun changing this model by implementing a series of successful reforms, demonstrating that the economy can become the number one issue in the Montenegrin politics.

We have also realised that the most important resource of our country is our people. Some countries took the loss of this resource too lightly when joining the EU, only to bitterly regret it later when some of them lost more than 20% of their population. We will not allow such an exodus to happen to us or overshadow all the benefits of the EU integration.

Yesterday, the Parliament adopted a set of legislative amendments through which we are fulfilling all the final benchmarks of the IBAR process: in just two years, going from zero to practically 100%, completing the technical part of the EU accession process. Accelerated economic reforms and the strengthening of the rule of law are producing the first results, along with strong economic growth in the second quarter.

Considering the information that the European Commission has so far approved a total of 89.3 EUR million in disbursements to our country from the Growth Plan, that we are recording an excellent tourist season with visitors from around the world and that the expansion of reputable domestic and foreign companies has been announced, we have additional reasons for optimism.

While we are rapidly closing chapters in Brussels, in Montenegro we are opening new ones—those that bring the European standards and European economic benefits even before formal EU membership.

It is with great pleasure that I inform the public that the conditions have been met for salaries in Montenegro to be calculated according to the binding criteria of the government’s EURO MODEL programme from the beginning of next year.

This innovative programme guarantees that the minimum net salary for workers with primary or lower education will be 1,000EUR; those with secondary education will receive at least 1,250 EUR; while employees with higher education will receive a minimum net monthly salary of as much as 1,400 EUR.

In parallel, there will be a significant increase in salaries above the minimum level. For every euro that an employer allocates to your salary, you will retain 92 cents in the case of higher incomes, and up to 97 cents for the lowest salaries.

Specifically, an employer who currently allocates 1,980 EUR for a net salary of 1,600 EUR will, from January, pay the same total amount while the employee will receive 1,870 EUR.

How? The Government will go a step further in reducing the tax burden on labour—enabling employers to emerge from the reform as winners as well. They will retain satisfied workers while benefiting from the prosperity of the EU single market and access to EU funds.

Furthermore, there will be a further increase if the social partners accept the Government’s request for the increase in the coefficient calculation value to be applied equally to both public and private sectors. In that case, the given net salary would exceed 2,000 EUR.

In this way, salaries will rise for everyone—in both private and public sectors, for those on minimum salaries as well as those on average and higher salaries.

According to the programme’s calculations, more than 250,000 employees would be covered by the increase, with the largest percentage increases going to those who are most vulnerable.

I particularly want to emphasise that we also care about those who have built this country over decades. From 2027, pensions will be adjusted four times a year so that they fully track salary growth. The average April pension will finally rise above 600 EUR, while the minimum pension will significantly exceed 500 EUR.

And let me be absolutely clear: this applies to all pensioners. As early as December this year, without waiting for 2027, every pensioner will receive an additional 100 EUR for the winter.

And let me immediately answer the question: who will pay for all this, and how?

The reform has been carefully planned and is fully covered by increased consumption and employment, the suppression of the informal economy, the expected return of the diaspora, spending discipline, as well as active tax measures that do not affect the living standards of the poor and the middle class.

Additional state revenue will also come from more efficient confiscation of unlawfully acquired assets through legal mechanisms aimed at combating organised crime and corruption.

In the period ahead, we will pay particular attention to taxation of vacant tertiary properties—that is, houses and apartments that owners keep closed while young people who want to start families and begin new lives have nowhere to live or are forced to pay unrealistically high rents.

The fact that everything has been carefully taken into account is also demonstrated by the deficit projection, which shows that we will pass through the transitional year of 2027 with a deficit of around 4–5%, while by 2028 the deficit is expected to be around 3%, thus satisfying the Maastricht criteria.

We know what challenges lie ahead: imported inflation, primarily driven by the wars in Ukraine and the Middle East; rising energy and food prices and the still unpredictable geopolitical situation.

That is precisely why the Euro Model is a necessary reform, because subsidies and sales promotions have a short-term effect, while a resilient salary and tax structure remains a permanent defence mechanism.

The Euro Model is above all a modern economic programme and a response to calls from social partners and employees, but also a supra-political initiative that must serve as the connective tissue of all structures that want what is best for Montenegro.

All analyses show that, in this way, the average net salary in our country will rise in a very short period from the current level of around 1,000 EUR to more than 1,400 EUR—which is higher than in Greece, Bulgaria, Romania and Hungary. In our region, our only strong competition is Croatia, with which we will soon formally join the European community of the best.

And finally, a message to those who will be caught by the announcement of this reform in Munich, Vienna, Dublin, Zurich or Chicago - you no longer have to choose between family and a decent life.

Montenegro is waiting for you. It is time to live by the EURO MODEL!

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