* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Euro (€)



Employment Cost


Annual Leave

20 days

In-demand Specialties*
Data Analysis, Digital Marketing, Programming And It

The Ultimate Guide to Hiring Employees in Montenegro

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Montenegro

Employing in Montenegro requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Montenegro with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Montenegro quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Montenegro's business-friendly policies and competitive tax structure make it attractive for international companies looking to establish a presence in Southeastern Europe.

The nation is actively fostering the growth of its Information and Communication Technology (ICT) sector, presenting opportunities for employers in the tech industry.

Montenegro boasts high levels of English proficiency, making it an attractive location for employers seeking a workforce with strong language skills.

The lower cost of living in Montenegro allows employers to offer competitive salaries to skilled workers while enjoying cost savings compared to salaries in Western Europe and North America.


Fundamental Aspects of Employment in Montenegro

Montenegro adheres to the 2008 Labour Act, encompassing a range of labor rights and conditions, and in January 2020, introduced a new Labour Act to align with EU standards. Employment formalities in Montenegro encompass:

  • Employment Type
  • Compensation and Benefits
  • Working Hours and Schedule
  • Termination Conditions

Probationary Period in Montenegro

In Montenegro, the probationary period, usually lasting three months, is defined within either the collective agreement or the employment contract, with a maximum duration of six months.

Working hours in Montenegro

The regular work schedule consists of 8 hours per day and 40 hours per week, from Monday to Friday.

Overtime in Montenegro

In Montenegro, overtime can be scheduled to meet specific work demands, but there are regulatory guidelines in place. These include restrictions on weekly working hours, which should not surpass an average of 48 hours per week over four months, with a maximum limit of 50 hours per week. In some cases, collective agreements may establish an annual cap of 250 hours for overtime. Additionally, the rate for overtime pay, typically defined in employment agreements or collective agreements, must be at least 140% of the regular wage.

Navigating Key Aspects of Payroll in Montenegro

Montenegro has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January - 31 December

Fiscal Year in Montenegro

1 January - 31 December is the 12-month accounting period that businesses in Montenegro use for financial and tax reporting purposes.

Payroll Cycle in Montenegro

The payroll cycle in Montenegro is usually monthly, with employees being paid on or before the last day of the month.
3.33 EUR p/h

Minimum Wage in Montenegro

The minimum wage for employees in Montenegro is typically 3.33 EUR per hour, amounting to ~532.54 EUR per month for a typical 40 hour work week.

Minimum wages and salaries in Montenegro

The minimum monthly gross wage in Montenegro is 532.54 EUR, equivalent to an annual sum of 6,390 EUR when calculated based on twelve monthly payments.

Bonus Payments in Montenegro

In Montenegro, there are no legal requirements or regulations that mandate the payment of 13th salaries. The provision of a 13th salary, also known as a Christmas bonus or a year-end bonus, is generally determined by individual employment contracts, collective agreements, or company policies.

Comprehensive Overview of Employment Taxes in Montenegro

Understanding the tax obligations for both employers and employees is crucial when operating in Montenegro's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Montenegro.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 8.3% on top of the employee salary in Montenegro.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Montenegro, the typical estimation for employee payroll contributions cost is around 24%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

In Montenegro, the income tax operates on a Pay As You Earn system, with rates ranging from 0% to 15%. The calculation of income tax is dependent on the individual's income as follows:

Tax Rate Income Bracket

Pension in Montenegro

In Montenegro, the pension system is funded through contributions from both employers and employees. Employers are required to contribute 5.5% of their employees' salaries to both the Pension and Disability insurance funds. The mandated retirement age, effective from 2023, is 66 years and eight months for men and 62 years and six months for women. However, to qualify for a pension, individuals must have a minimum contribution period of 15 years.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Montenegro tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

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Understanding the Protocols for Termination of Employment in Montenegro

When it comes to terminating employment in Montenegro, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

Termination of a fixed-term contract by employers can occur for business reasons, personal reasons, or due to worker misconduct. Termination necessitates prior notice and a written explanation. Juist grounds for termination may include:

  • Probation period evaluation
  • Objective grounds
  • Disciplinary reasons
  • Unsuitability for job performance

Notice Period

In Montenegro, the termination of employment must be communicated through written notice, typically with a minimum of 30 days in advance, unless otherwise specified in the employment contract or collective agreement.

Severance Pay

The employment contract or collective agreement must explicitly define severance pay, which should amount to at least three times the average monthly salary. This payment should be provided without any deductions for taxes and contributions, based on the average salary from the preceding four months.

Annual Leave Entitlements and Company Policies in Montenegro

The annual leave entitlement in Montenegro is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Montenegro

Montenegro observes several national holidays, and many of them extend over multiple days, granting employees the entitlement to take the day off.

Holiday Date

Paid Time Off in Montenegro

Maternity Leave in Montenegro

Paternity Leave in Montenegro

Sick Leave in Montenegro

Adoption Leave

Other Types Of Leave

Parental Leave In Montenegro

Montenegro's Benefits Built Into Playroll

Competitive benefits package in Montenegro

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Montenegro's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Montenegro

Make your benefits package in Montenegro a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Long-Term/Disability Insurance
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Montenegro

Montenegro's social security system encompasses key elements such as sickness and maternity insurance, pensions for old age and disability, workplace accident and occupational disease coverage, unemployment benefits, and family-related benefits. Employers participate by contributing to these mandatory employee benefits within the system.

  • Sickness and maternity insurance
  • Pensions for old age and disability
  • Workplace accident and occupational disease coverage
  • Unemployment benefits
  • Family-related benefits

Playroll allows you to provide localized benefits for employees in Montenegro within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Montenegro create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Montenegro

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Montenegro.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

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