PES Calls for Social Council Alignment on Proposed Bonus Law

The Party of European Socialists (PES) has urged all lawmakers proposing social initiatives that significantly impact budget allocations to align their proposals with the Social Council. This advisory body is legally recognized as the authority on public policy in this area. The call for alignment comes in light of a proposed law concerning an annual bonus, which is expected to affect many citizens in Montenegro.

In a statement, the PES emphasized that the proposed Annual Bonus Law should be coordinated with the Social Council, particularly since its proponent, Vice President Nik Đeljošaj, is also a member of this council. They noted that this coordination has been a standard practice during the development of the “Europe Now” programs, which aim to improve economic conditions in Montenegro.

The PES indicated that any proposal from Đeljošaj would be carefully considered only after he aligns it with the Social Council and ensures the sustainability of the initiative. They highlighted the importance of establishing a clear revenue plan to support the proposed measure.

Last week, Nik Đeljošaj, who also serves as the leader of the Albanian Forum, announced plans to submit a law to the Parliament of Montenegro that would provide an annual bonus. This bonus would amount to 50 percent of the average salary or pension, benefiting both employed citizens and retirees by the end of the year.

In an interview with the newspaper Pobjeda, Đeljošaj explained that this bonus should be considered an annual incentive that would be exempt from taxes and contributions. He stated, “This means that employers will not face any additional fiscal burdens, as they will pay out the net amount without taxes or contributions. In this way, the state assumes the fiscal burden, significantly reducing the employer’s costs compared to any other form of salary increase.”

According to Đeljošaj, this direct bonus to employees is designed to enhance job satisfaction and reduce workforce turnover. He suggested that these factors are critical for employers, who view lower real costs due to tax exemptions as a significant incentive.

He further elaborated that “the motivation for employers lies in reduced real costs due to tax exemptions, stimulation, enhanced employee satisfaction, increased productivity, and loyalty.” As this initiative progresses, the PES’s emphasis on aligning social proposals with the Social Council reflects a commitment to ensuring responsible governance and fiscal sustainability in Montenegro’s economic landscape.

As this situation develops, the PES and other stakeholders will be monitoring the discussions surrounding the proposed law closely, particularly regarding its potential impact on the budget and the overall economy.