Country Payroll Guide Montenegro

We deliver secure, compliant, accurate and touchless global payroll for Montenegro.

Get in touch
Montenegro image

Key Facts

Capital
Podgorica
Date format
dd/mm/yyyy
Currency
Euro (EUR)
VAT
the standard rate is 19%

Contributions

Employers

Pension and Disability insurance
Pension and Disability insurance - 5.5%
Health Insurance
Health Insurance - {{ value }]%
Unemployment Insurance
Unemployment Insurance - 0.5%
Total Employment Cost
Total Employment Cost - 8.3%

Employees

Pension and Disability Insurance
Pension and Disability Insurance - 15%
Health Insurance
Health Insurance - 8.5%
Unemployment Insurance
Unemployment Insurance - 0.5%
Total Employee Cost
Total Employee Cost - 24%

Minimum Wage

Minimum Wage
The minimum wage in Montenegro is 222 EUR per month.

Payroll

Payroll Cycle
Monthly
13th Salary

Not required by law.

Income Tax

Employee Income Tax (1)
Flat Rate - 9% Flat Rate
Employee Income Tax (2)
For gross salaries exceeding average monthly salary - 11%

Working Hours

General Working Hours

40 hours per week.

Overtime

Overtime cannot exceed more than 10 hours per week for a total of 50 hours worked. In general, overtime must be agreed upon in writing with the exception of emergency situations.

Overtime pay is generally outlined in collective bargaining agreements, but the minimum legal threshold is 140% of the regular pay.

Leave

Paid Time Off

20 working days.

Public Holidays

10 public holidays.

Sick Days

Employees receive 70% compensation from their employer for the first 60 days of sick leave and then after from social security.

Maternity Leave

98 days of paid maternity leave. 28 days are taken prior to birth and 70 days are taken after childbirth.

Paternity Leave

Paternal leave can be used after the completion of maternity leave for a duration of 365 days.

Termination

Termination Process

To terminate an employee, an employer must have sufficient grounds by virtue of law and provide the required notice of termination.

Notice Period

At least 30 days prior to the date of termination.

Severance Pay

Should not be lower than 3 average monthly wages free of taxes and contributions in the previous semester.

Probation Period

Defined by a collective agreement with an employer or the labor contract and shall not exceed 6 months.

Visa

Employment Visa

To get this permit, applicants should visit the Montenegrin embassy or consulate in their country of residence and provide all the necessary documents to support the application.

The Ministry of Foreign Affairs in Montenegro will issue a residence permit on the grounds of a work permit.