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* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.
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.
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:
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.
The regular work schedule consists of 8 hours per day and 40 hours per week, from Monday to Friday.
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.
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.
In Montenegro, there are no legal requirements or regulations that mandate the payment of 13th salaries, however this is considered common practice. 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
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:
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. Employees are eligible for pension at the mandated retirement ages. 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.
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:
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.
The employment contract or collective agreement must explicitly define severance pay, with the minimum severance payment equal to an amount of 1/3 if employee average salary for the proceeding 6 months. However the severance payment cannot be less than at least 3 times the employee's salary or average monthly salary in Montenegro (calculation therefore performed on whichever is higher). This payment should be provided without any deductions for taxes and contributions.
Montenegro observes several national holidays, and many of them extend over multiple days, granting employees the entitlement to take the day off.
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.
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