Wages in Montenegro under the pressure of global crisis
Wages in Montenegro under the pressure of global crisis

Summary/Abstract: Wages in Montenegro are regulated in practice by the Labour Law and by collective agreements. After the fall during the 1990s, the living standards of the Montenegrin population started to recover at the beginning of this decade and, thus, workers’ wages have been continuously growing since 2000. The global economic crisis has not, up to the middle of 2009, disrupted that trend: the average net wage in June of this year was €466, which was 18.6 % higher than in June 2008. However, the reduction in economic activity as a result of the global crisis forced the government to announce in July more radical savings measures which will be implemented this autumn. These savings measures are supposed to lead to a 10 % reduction in wages in the public sector. In addition, there are projected changes to the General Collective Agreement and the method of determining the minimum wage in Montenegro. The practical implementation of these measures will depend on the results of this year’s tourism season.

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