Montenegro plans to raise the lowest wage to 1,000 euros net from January 2027, while minimum wages for more demanding jobs would amount to 1,250 and 1,400 euros.

These are net amounts that workers would receive in their accounts, after taxes and contributions are calculated.

According to a statement by the Office of the Prime Minister of Montenegro from September 17, Prime Minister Milojko Spajić presented the 'Euro model' program, announcing higher incomes in the private and public sectors. The Government has adopted proposals for the necessary laws, but the announced amounts should for now be distinguished from the minimum wages already in force.

The lowest minimum wage would rise by 400 euros

In Montenegro, there are currently minimum wages of 600 and 800 euros net, depending on the qualifications required for the job.

A shift from the lowest 600 to 1,000 euros would mean an increase of 400 euros per month, or 66.7%.

The new proposal provides for 1,000 euros for jobs requiring qualification levels 1 and 2, 1,250 euros for secondary school qualifications at levels 3 and 4, and 1,400 euros for level 5 and above in the Montenegrin system. The highest threshold therefore also includes higher vocational education, and not exclusively university education. What is decisive for determining the minimum wage are the requirements of the job, and not only the diploma the employee holds.

Why can't Croatia achieve this?

In Croatia, the minimum wage for 2026 amounts to 1,050 euros gross, which brings a worker without additional tax relief approximately 800 euros net, with differences depending on place of residence.

The announced Montenegrin minimum of 1,000 euros net would be noticeably higher than that amount. However, it is not correct to claim in advance that it will certainly surpass the Croatian minimum wage for 2027, whose official amount is still unknown. If the Croatian one were to rise to approximately 1,000 euros net, it would be equal to the lowest Montenegrin one, while the thresholds there of 1,250 and 1,400 euros would remain higher.

This raises the justified question of whether Croatia can secure a similar shift for its lowest-paid workers.

Is this kind of growth really feasible?

Spajić's plan relies on a strong reduction in taxes and contributions so that a larger share of the money set aside by the employer ends up with the worker. However, reducing levies does not automatically cover the entire increase in the minimum wage, so costs would still rise for some employers. At the same time, the state must make up the revenues from which it finances pensions and other obligations. The Government is counting on higher consumption, employment, and the suppression of the grey economy, and for 2027 it projects a budget deficit of around 4 to 5% of GDP. Feasibility therefore also depends on whether the expected revenues will materialize and whether companies can sustainably pay higher wages in the long term.

Will higher wages also bring a more expensive life?

Will the increase in the minimum wage further fuel inflation and make life significantly more expensive? That risk exists, companies may pass some of the higher costs on to customers, and higher consumption may further push up prices where supply does not keep pace with demand.

The IMF already warned in 2025 that wage growth in Montenegro contributes to inflationary pressures, although that is not an assessment of the new 'Euro model'. How much the new reform would affect prices cannot yet be said reliably. Workers would truly gain in living standards if their incomes grow faster than the costs of housing, food, and other everyday needs.

Fewer departures and fewer under-the-table payments?

If Montenegro increases purchasing power enough before joining the EU, it could reduce some of the economic reasons for leaving for Germany, Austria, and other Western countries. That is a possible effect, not a guarantee; staying is also influenced by housing, job security, and the quality of public services.

A higher officially reported minimum wage could reduce the room for the practice in which an employer officially pays the minimum, and gives the rest 'under the table'. Lower levies could additionally encourage reporting the full wage. However, reducing the grey economy will also require effective oversight, because the prescribed amount alone does not ensure that every employer will comply with it.

Workers will judge by what remains after the bills

Montenegro's announcement is significant enough to deserve attention beyond its borders, but success will only be able to be assessed through payouts, prices, and the sustainability of jobs. If employees are left with noticeably more after rent, food, and utilities, the reform will have real meaning and could convince some people to seek their future at home. For Croatia, such a result would be one more reason to talk more seriously about the level of the lowest wages. Because for a worker who puts in a full month, it is not enough to hear that the economy is progressing if they still struggle to cover basic costs with their wage.