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Montenegro Raises Retirement Age to 67 Amidst Heated Debate
🇷🇸 Serbia /Economy & Trade

Montenegro Raises Retirement Age to 67 Amidst Heated Debate

From N1 Serbia · (8m ago) Serbian Mixed tone

Translated from Serbian, summarized and contextualized by DistantNews.

TLDR

  • Montenegro has raised the retirement age from 66 to 67 years, requiring at least 15 years of service.
  • The change, intended to address labor market needs and a shortage of doctors, has sparked debate between the ruling coalition and the opposition.
  • Opposition parties warn that the move, coupled with rising public spending, could lead to inflation and further increases in the retirement age.

Montenegro's new Labor Law amendments, which raise the retirement age to 67, have officially taken effect. This significant policy shift, aimed at addressing critical labor shortages, particularly in the healthcare sector, and responding to demands from trade unions and the labor market, has ignited a fierce debate across the political spectrum.

The basic motive for moving the retirement age was to respond to the demands of trade unions and the labor market.

— Mirsad NurkovićDeputy Speaker of the Montenegrin Parliament explaining the rationale behind the new retirement age.

Deputy Speaker of the Montenegrin Parliament, Mirsad Nurković of the Bosniak Party, defended the changes, emphasizing that they are designed to meet the needs of both workers and employers. He highlighted the urgent necessity to retain experienced professionals, especially doctors, in the workforce to mitigate shortages in hospitals and health centers. The law maintains the upper limit of 67 years for mandatory retirement, ensuring a structured transition.

The Labor Law applies to business companies, all public institutions, except public administration. I believe that this somewhat meets the demands of trade unions, but also the needs of the labor market.

— Mirsad NurkovićExplaining the scope of the new Labor Law amendments.

However, the opposition, represented by Nikola Milović of the Democratic Party of Socialists (DPS), has voiced strong criticism. Milović argues that the government's economic policies, characterized by salary increases without corresponding productivity gains, are fueling inflation and destabilizing the Pension and Disability Fund (PIO). He predicts that this fiscal strain will inevitably lead to further increases in the retirement age in the coming years, placing a greater burden on citizens.

Where we have a large shortage of medical staff and if we deny them the opportunity to work for a number of years for which they are capable, I think those were the basic motives.

— Mirsad NurkovićJustifying the retirement age increase by citing the need for doctors.

Milović also pointed to demographic trends, noting the aging population and the consequent rise in healthcare costs. He contends that the dual pressures of a longer working life and increased social spending will deepen deficits in both the PIO and health funds, creating a challenging fiscal outlook for Montenegro. The debate underscores the complex interplay between economic policy, demographic shifts, and social welfare in the country.

The Labor Law defines, as it was before, that the upper limit is sixty-seven years for mandatory retirement.

— Mirsad NurkovićClarifying the upper age limit for retirement.
DistantNews Editorial

Originally published by N1 Serbia in Serbian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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