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