ILO ESAP 2: An Evaluation of Montenegro’s 2022 Minimum Wage and Income Tax Reform
Between 2018 and 2022, Montenegro introduced a series of significant policy reforms. The reforms affected economic, educational, and social policies, ranging from the introduction of a universal child allowance to major changes in its labour market regulations and tax rules. From an economic policy perspective, the most significant reform package was implemented in January 2022.
It was composed of a huge increase in Montenegro’s statutory minimum wage, alongside a new income tax regime and the abolishment of mandatory health insurance contributions. According to the Government, the reform package aimed at increasing the living standards of citizens and promoting a more sustainable and inclusive growth model.
This report evaluates the conjoint impact of this reform package.
