Over the course of a 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 second with a similar figure, while several countries recorded declines.
This significant growth 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 wagefor workers with secondary education was set at€600, while for university graduates it was set at€700.
For comparison: before the reform, the minimum wage in the country was €450. Thus, the increase amounted to+€150or+33% in nominal terms, but when calculated from July 2024 to July 2025, Eurostat’s figures show an increase of just over 20% due to recalculation using annual average values.
Where Montenegro stands on Europe’s wage map
According toEurostat, in July 2025 minimum wages in EU countries ranged from€551 in Bulgariato€2,704 in Luxembourg. Among candidate countries, the lowest amount was recorded inUkraine — just €164.
It is important to note that there are five EU member states in Europe wherethere is no legally established minimum wage: Italy, Denmark, Sweden, Austria and Finland.
Four wage groups in Europe
Eurostat and Euronews analysts divided 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, improving its position in regional comparisons.
The geography of inequality
The map of Europe’s minimum wages clearly shows the divide between the west and east of the continent.
- Western and Northern Europeare the leaders in income levels.
- The Balkans and Eastern Europeare at the bottom of the ranking, including most EU candidate countries.
Economist Sotiria Theodoropoulou of the European Trade Union Institute (ETUI) explains:“The higher the productivity, the higher the wages. Countries with developed industry, financial sectors and high technology can afford to pay more and have stronger bargaining positions with employers”.
Adjusting for purchasing power changes the picture
If minimum wages are recalculated inpurchasing power standard (PPS), the gap between countries narrows. For example:
- In euros, Luxembourg’s minimum wage is 4.9 times higher than Bulgaria’s.
- In PPS, the difference is “only” 2.3 times.
When adjusted for purchasing power, the lowest minimum wage in the EU is inEstonia (886), and among candidate countries — inAlbania (566).
Notably, Montenegro, North Macedonia and Turkey are ahead of some EU member states in PPS terms, 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.
- Growth: North Macedonia (+7.7%), Greece (+6.1%).
- Decline: Turkey (−21.2%) and Ukraine (−9.9%) — mainly due to inflation and exchange rate fluctuations.
Lookingyear on year(July 2024 — July 2025), the picture is:
- Leaders among candidate countries —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 fell.
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 puts 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 that for a sustainable effect, it is necessary not only to raise wages, but also to invest in productivity growth, education and innovation.