Your quick guide on talent and labor compliance norms in Montenegro
Capital
Podgorica
Currency
Euro (EUR)
Languages
Albanian, Bosnian, Croatian, Serbian
Payroll Frequency
Monthly
GDP per Capita
$7,879.49
Employer Tax
6%
Talent Overview
Montenegro is in the process of transition as it recovers from the Yugoslavian Wars. The country is listed as the 103rd freest economy in 2022 and placed 41st in Europe. It once boasted its economy as agriculturally strong. Currently, the country is positioning itself as an elite tourist destination. The country is looking for foreign investors to bolster its service industry in preparation for the future.
Major economic hubs:
Podgorica
Skills in demand:
Tourism Professionals, Engineering Professionals, ICT Professionals
Local Universities
The top local universities in Montenegro are as follows:
Salary Data
The table contains average monthly salary in Montenegro
| Job Title | Average Monthly Salary (EUR) | Average Monthly Salary (USD) |
| Information Technology Manager | 4,410.00 | 4,740 |
| Network Engineer | 2,370.00 | 2,547 |
| Developer / Programmer | 2,610.00 | 2,805 |
| Project Manager | 2,980.00 | 3,203 |
| Database Administrator | 2,690.00 | 2,891 |
| Business Analyst | 3,370.00 | 3,622 |
| Business Development Manager | 4,230.00 | 4,546 |
Talent Sourcing Tips
Zaposli, Employment Agency of Montenegro, Prekoveze
108, 100
Alma Career, Employment Agency of Montenegro
Hiring in Montenegro requires you to be aware of the local employment laws, benefits, payroll, and taxes. Below is everything you need to know to successfully onboard talents from Montenegro.
Contracts in Montenegro can either be verbal or written according to the Labour Code. However, a written contract must be signed by both employee and employer before the start of the employment tenure. There is no specific language needed for the contract, but the official document must be in Montenegrin for it to be recognized by the law.
The probationary period for new employees are up to 6 months.
| Date | Name | Type |
| 1 Jan | New Year’s Day | National holiday |
| 2 Jan | New Year’s Day Holiday | National holiday |
| 3 Jan | New Year’s Day observed | National holiday |
| 1 May | Labour Day/May Day | National holiday |
| 2 May | Labour Day/May Day Holiday | National holiday |
| 21 May | Independence Day | National holiday |
| 22 May | Independence Day Holiday | National holiday |
| 23 May | Independence Day observed | National holiday |
| 13 Jul | Statehood Day | National holiday |
| 14 Jul | Statehood Day Holiday | National holiday |
| Type of leave | Time period | Mandatory |
| Annual leave/Earned Leave | 15 – 30 days | Yes |
| Maternity Leave | 98 days | Yes |
| Sick Leave | Based on requirement | Yes |
Payroll
Payroll Cycle
Workers are paid monthly.
Minimum Wage
The minimum wage in Montenegro is EUR 450 per month.
Overtime Pay
Overtime pay in Montenegro should at least be 125% the current rate of the employees. However, rates for overtime and holiday compensation depend on the employment contract and collective agreement.
Bonus
The 13th-month pay is not mandatory in Montenegro however, it can be agreed upon by both parties through the collective agreement or employment contract.
Taxes
Contributions are subject to a specific annual cap for 2021 (EUR 54,533.00)
| Type of Contribution | Rate (%) | ||||
| Pension and Disability Insurance | 5.5 | ||||
| Unemployment Insurance | 0.5 |
| Type of Contribution | Rate (%) | ||||
| Pension and Disability Insurance | 15.0 | ||||
| Unemployment Insurance | 0.5 |
| Employee Income Tax | |
| Tax range | Rate (%) |
| Less than EUR 700 | 0 |
| EUR 701 to EUR 1,000 (gross) | 9 |
| EUR 1,001 onwards | 15 |
| Entrepreneur Income Tax | |
| Tax range | Rate (%) |
| EUR 8,400.01 to EUR 12,000.00 | 9 |
| EUR 12,000.01 onwards | 15 |
Surtax is 13% applicable to all municipalities except for Podrica and Cetinje. Podrica and Cetinje surtax is 15%. The surtax base is the Income Tax assessed.
The standard VAT in Montenegro is 21% but certain supplies are reduced to 7% (e.g. bread, milk, books, medicines, computers) and 0% (export goods and gasoline for vessels in international traffic)
Offboarding & Termination
Employers in Montenegro are required to provide a notice period for the termination of employees. According to the Labour Code, employers can terminate employees for the following reasons.
The notice period for probationary and regular employees is 30 days.
The severance pay in Montenegro must be in the amount of at least one-third of the employee’s monthly average salary, less the taxes and contributions in the previous six months. The severance pay must be at least three monthly salaries in the last six months.
Visa and Immigration
There are two possible visas for entering Montenegro for business purposes. You can either apply for a Short Stay Visa or Long Stay Visa.
For Short Stay Visas, it may be issued for one or multiple entries where you can stay in the country for 90 days at most in a period of 6 months. The validity of this visa is only up to one year but can exceed up to no more than 5 years.
For Long Stay Visas, it may be issued for one or multiple entries where you can stay in the country for more than 90 days in a period of 6 months. More often, this type of visa is offered to travelers who conduct business in the country for an extended period of time.
