Hire and pay employees in
Montenegro, hassle-free

The minimum wage for employees in Montenegro is  €800 per month for employees with educational qualification level VI or higher, and €600 per month for employees with educational qualification level V or lower.

The individual income tax ranges up to 15%. Income tax is calculated based on the income of the person.

• Up to EUR 700 per month - 0%
• From EUR 701 to EUR 1.000 per month - 9%
• Over EUR 1.001 - 15%

The employer cost is generally estimated at 2.97% of the employee salary.

• Unemployment Insurance - 0.50% 
• Labour Fund 0.20%
• Chamber of Commerce 0.27%
• Municipality Surtax 15%*

*The municipality surtax is an employer cost that must be paid based on employee’s taxes. Since it is a surtax, it will be a percentage of the tax, not from the total of the gross salary.

These costs are provided as estimates and are intended solely for general informational purposes. To fully comprehend all associated costs and fees related to the terms of any employment agreement for this country, please contact our Sales team for a quote.

Standard working hours are 8 hours per day, 40 hours per week. The standard work week is from Monday to Friday.

Overtime payment is mandatory. Employees can work a maximum of 250 hours of overtime a year. For additional hours, employees are paid:

• 140% of the hourly rate on standard working hours.
• 180% of the hourly rate on weekends.
• 180% of the hourly rate on public holidays.

Employees have the entitlement to paid sick leave for a period of up to 365 days. The rates and payers for this leave vary depending on its duration:

• Up to the 60th day, the employee will receive 70% of the salary paid by the employer.
• From the 60th day up to 360 days, the employee will receive 70% of the salary paid by Social Security.

Terminating employments in Montenegro can be a complex process. The termination documentation must be notarized in the presence of both the employee and a company representative.

Compliant terminations may occur through the following means:

• Voluntary resignation by the employee
• Mutual agreement between the parties
• Unilateral termination by the employer based on:
• Probation period evaluation
• Objective grounds
• Disciplinary reasons
• Unsuitability for the job performance
• Expiration of the employment contract

Full-time employees are entitled to 20 working days of paid time off (PTO) a year. PTO accrues monthly at 1.66 days per month.

If the employee has a working week of 6 days, the minimum time off will be 24 working days. Employees must take at least 10 working days in a row during each calendar year.

Montenegro celebrates 14 national holidays and no regional holidays.

National public holidays include:

• New Year's Day
• Day after New Year’s Day
• Orthodox Christmas Eve
• Orthodox Christmas
• Orthodox Good Friday
• Orthodox Easter Day
• Orthodox Easter Monday
• May Day Monday (Labour Day)
• May Day Tuesday (Labour Day)
• Independence Day Monday
• Independence Day Tuesday
• Statehood Day Thursday
• Statehood Day Friday
• Njegos's Day, Montenegrin Culture Holiday
  

Contracts must be in Montenegrin and may also be bilingual. They must be documented in writing and duly signed in wet ink by both parties.
A contract should encompass the following details:

• Full name
• Commencement date
• Duration of employment
• Job description
• Termination conditions