The annual M4 and M12 forms are an obligation of every employer toward the Pension and Disability Insurance Fund of Montenegro (PIO). The final deadline for submitting both forms is 30 April of the current year for the previous year.
M4 form — data on employee salaries
If salaries were paid in the previous year, in the current year by 30 April you are, as a company, obliged to submit the annual M4 form.
The M4 form is a submission of data on the basis of which the following are determined:
- The employee’s insurance service
- Salaries earned in the previous year
- Salary compensations earned on the basis of temporary inability to work (sick leave)
These data are used to calculate the personal coefficient for all employees of your company — which is key for future pensions.
How to check that M4 has been filed
M4 is part of your accountant’s operational activities. You can check submission by:
- Requesting an analytical card from the Pension and Disability Insurance Fund of Montenegro
- Checking directly through the PIO Fund portal
M12 form — data on compensation under contracts
The M12 form is a submission of data on salary compensations earned on the basis of:
- Copyright contract
- Service contract
- Other similar contracts
- Compensations on the basis of participation in Management Boards and Boards of Directors — for which PIO contributions have been paid
M12 also serves to calculate the personal coefficient of the recipient of compensation.
This form is submitted on the same schedule — by 30 April of the current year for the previous year.
Why these forms are important for employees
- Without properly submitted M4 and M12 forms — the insurance service will not be recorded with the PIO Fund
- An employee may have a problem when calculating a future pension
- The personal coefficient, which directly affects the pension amount, depends on this data
Consequences of late filing or non-filing
- Legal sanctions against the employer
- Problems for employees regarding recognition of service
- Possible disputes over the amount of future pension
Not sure whether your M4 and M12 forms have been filed on time? Contact Finance Plus — we will take over all communication with the PIO Fund.
