Montenegro – the leader among EU candidate countries in minimum wage growth (up 20%)
Over the year, minimum wages in Montenegro increased by more than 20%, outpacing all EU candidate countries. This result put the country at the top of the Eurostat ranking and clearly showed how quickly the region’s economic landscape is changing. The record...
Over the year, minimum wages in Montenegro rose by more than 20%, outpacing all EU candidate countries. This result put the country at the top of the Eurostat ranking and clearly showed how quickly the region’s economic map is changing.
A record leap under the “Europe Now 2” program
From July 2024 to July 2025, Montenegro’s minimum wage increased by more than 20% — an absolute record among all European Union candidate countries. North Macedonia came in second with a similar figure, while in a number of countries declines were recorded.
Such a significant increase was the result of the government program “Europe Now 2”, launched in October 2024 at the initiative of Prime Minister Milojko Spajić. Under the reform, the minimum wage for workers with secondary education was set at 600 euros, and for specialists with higher education — 700 euros.
For comparison: before the reform, the minimum wage in the country was 450 euros. Thus, the increase amounted to +150 euros or +33% in nominal terms, but if measured from July 2024 to July 2025, Eurostat’s calculations show an increase of just over 20% due to recalculation based on annual average figures.
Where Montenegro stands on Europe’s wage map
According to Eurostat, in July 2025 minimum wages in EU countries ranged from 551 euros in Bulgaria to 2,704 euros in Luxembourg. Among candidate countries, the lowest amount was recorded in Ukraine — just 164 euros.
It is important to note that in Europe there are five EU member states where there is no legally established minimum wage
: Italy, Denmark, Sweden, Austria and Finland.
Four wage groups in Europe
Eurostat and Euronews analysts divided the countries into four categories:
High group (more than €1,500) — Luxembourg (€2,704), Ireland (€2,282), the Netherlands (€2,246), Germany (€2,161), Belgium (€2,112), France (€1,802).
Middle group (€1,000–1,500).
Low group (€600–999).
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 end of the “low group” to its upper segment, which improved its position in regional comparison.
The geography of inequality
Europe’s minimum wage map clearly shows the divide between the west and east of the continent.
Western and Northern Europe — leaders in income levels.
The Balkans and Eastern Europe — in the lower part of the ranking, including most EU candidate countries.
Economist at the European Trade Union Institute (ETUI), Dr. Sotiria Theodoropoulou, explains: “Higher productivity means higher wages. Countries with developed industry, a financial sector and high technologies can afford to pay more and have stronger positions in negotiations with employers”.
Adjusting for purchasing power changes the picture
If minimum wages are recalculated in purchasing power standard (PPS), the gap between countries narrows. For example:
In euros, Luxembourg gets 4.9 times more 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 candidates — in Albania (566).
Notably, Montenegro, North Macedonia and Turkey, in PPS terms, are ahead of some EU member states, including Malta, Hungary and Slovakia.
Who gained and who lost over the year
From January to July 2025, the minimum wage in most countries remained unchanged.
Increase: North Macedonia (+7.7%), Greece (+6.1%).
Decline: Turkey (−21.2%) and Ukraine (−9.9%) — mainly due to inflation and exchange rate fluctuations.
If we look year on year (July 2024 — July 2025), then:
Leaders among candidates — Montenegro and North Macedonia (growth of 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%) posted modest gains, but due to inflation real incomes there declined.
What’s next for Montenegro
Economists note that rapid minimum wage growth is a double-edged sword.
On the one hand, it raises living standards and stimulates domestic demand.
On the other — it creates pressure on businesses, especially in the small and medium-sized sector, and may accelerate inflation.
Montenegrin authorities expect that higher household incomes will give the economy an additional boost and help narrow the gap with Europe’s wealthier countries. However, experts warn: for a lasting effect, it is necessary not only to raise wages, but also to invest in productivity growth, education and innovation.
