Montenegro is the leader among EU candidates in increasing the minimum wage (20% increase)

In one year, minimum wages in Montenegro have grown by more than 20%, outpacing all EU candidate countries. This result has secured the country a place at the top of the Eurostat rankings and clearly shows how quickly the region's economic map is changing.

Record breakthrough for Europe Now 2

From July 2024 to July 2025, the minimum wage in Montenegro increased by more than 20%, an absolute record among all candidate countries for the European Union. In second place was North Macedonia with a similar indicator, while a number of countries recorded a decline.

This significant growth was the result of a government program "Europe Now 2", launched in October 2024 on the initiative of Prime Minister Milojko Spajic. According to the reform, minimum wage for workers with secondary education was set at the level 600 euro, and for specialists with higher education - 700 euro.

For comparison: before the reform, the minimum wage in the country was 450 euros. Thus, the increase was +150 euros or +33% in nominal terms, but if we count from July 2024 to July 2025, in Eurostat calculations the increase was just over 20% due to recalculation based on average annual figures.

Where is Montenegro on the European salary map

According to EurostatIn July 2025, minimum wages in EU countries ranged from 551 euro in Bulgaria to 2 euros in LuxembourgAmong the candidate countries, the smallest size was recorded in Ukraine - only 164 euros.

It is important to consider that there are five EU member states in Europe where there is no statutory minimum wage: Italy, Denmark, Sweden, Austria and Finland.

Four salary groups in Europe

Eurostat and Euronews analysts divided countries into four categories:

1. High group (more than €1) – Luxembourg (€500), Ireland (€2), Netherlands (€704), Germany (€2), Belgium (€282), France (€2).
2. Middle group (1–000 €).
3. Low group (600–999 €).
4. Very low group (less than €600) – North Macedonia (€584), Turkey (€558), Bulgaria (€551), Albania (€408), Moldova (€285), Ukraine (€164).

After the October reform, Montenegro moved from the lower limit of the “low group” to its upper segment, which improved its position in regional comparison.

Geography of Inequality

A map of minimum wages in Europe clearly shows the gap between the west and east of the continent.

• West and North of Europe — leaders in terms of income level.
• Balkans and Eastern Europe — at the bottom of the ranking, including most of the EU candidate countries.

Dr Sotiria Theodoropoulou, an economist at the European Trade Union Institute (ETUI), explains: "Higher productivity means higher wages. Countries with developed industry, financial sector and high technologies can afford to pay more and have stronger bargaining positions with employers".

Adjusting for purchasing power changes the picture

If the minimum wages are recalculated into purchasing power standard (PPS), the gap between countries is decreasing. For example:

• In euros, Luxembourg receives 4,9 times the minimum wage than Bulgaria.
• In PPS, the difference is “only” 2,3 times.

In terms of purchasing power, the lowest minimum wage in the EU is in Estonia (886), and among the candidates - Albania (566).

Notably, Montenegro, North Macedonia and Türkiye are ahead of some EU member states in PPS, including Malta, Hungary and Slovakia.

Who gained and who lost over the year

From January to July 2025, the minimum wage remained unchanged in most countries.

• Height: North Macedonia (+7,7%), Greece (+6,1%).
• Drop: Türkiye (-21,2%) and Ukraine (-9,9%) - mainly due to inflation and exchange rate fluctuations.

If you look year on year (July 2024 - July 2025), then:

• The leaders among the candidates are: Montenegro and North Macedonia (growth over 20%).
• Leader in the Eurozone Croatia (+15,5%), followed by Lithuania (+12,3%).
• France showed minimal growth (+2%), while Germany (+5,2%) and Spain (+4,4%) added slightly, but due to inflation, real incomes there fell.

What's Next for Montenegro

Economists note that the rapid growth of the minimum wage is a double-edged sword.

• On the one hand, this raises the standard of living and stimulates domestic demand.
• On the other hand, it creates pressure on businesses, especially in the small and medium sector, and may accelerate inflation.

The Montenegrin authorities hope that the increase in the population's income will give an additional boost to the economy and help reduce the gap with richer European countries. However, experts warn that for a sustainable effect it is necessary not only to raise wages, but also to invest in the growth of labor productivity, education and innovation.