Employer of Record in Montenegro

Basic information

Capital: Podgorica

Time zone: GMT+1

Languages:Montenegrin

Currency code: EUR

Human Resources at a Glance 

Contract Terms

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

Guidelines Regarding Probation Period/Trial Period

The minimum probationary period is 30 days, and the maximum probationary period is 180 days.

Regulations and Rules Regarding Working Hours

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

Overtime is paid according to the following rates

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.

Minimum Wage Requirements

The minimum wage for employees in Montenegro is EUR 450 per month. The minimum wage for part time employees is EUR 225 per month.

In Montenegro, annual salary increments for workers are determined by their years of service.

Termination

Grounds

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.

Notice Period

The minimum notice period is 30 days and is contingent on the conditions outlined in Article 177 of the Labor Law.

Severance compensation

In Montenegro, employees who are terminated without cause are entitled to receive severance pay. The severance amount should be a minimum of one-third of the employee’s average monthly wage for each year of service with that employer.

Payment & leave Compensation & Holidays

SalaryPayment

Once a month

Payslip Payroll

No explicit provision

Annual Leave

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.

Sick Leave

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.

Maternity & Parental Leave

Parental leave begins after the end of maternity leave and lasts until the expiry of 365 days after childbirth. Parental leave may be used by both parents in equal parts, but not simultaneously. If one parent has started using parental leave, the other parent may continue to use it after the expiry of 30 days from the commencement of the leave.

Tax and Social Security Information

Personal Income Tax

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 local surtax is an additional tax imposed alongside the personal income tax (PIT) and is required to be paid to the municipality where the taxpayer resides. A surtax rate of 13% is applicable in all municipalities, except for Podgorica and Cetinje, where the rate is set at 15%.

Social security

• Pension Insurance
• Public Health Insurance
• Social Security
• Unemployment Insurance

Public Holidays 2024

holidays	date
New Year’s Day	1.1-1.2
Orthodox Christmas Eve	1.6-1.8
Labour Day	5.1-5.3
Orthodox Easter Monday	5.6
Independence Day	5.21-5.22
National Day	7.13
National Day Holiday	7.15
Njegos Day	11.13-11.14