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Public Holidays Calendar

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Montenegro 2022
Day Date Holiday Notes
Saturday Jan-1 New Year's Day
Sunday Jan-2 Second Day of the New Year
Thursday Jan-6 Orthodox Christmas Eve
Friday Jan-7 Orthodox Christmas Day
Saturday Jan-8 2nd Day of Orthodox Christmas
Friday Apr-22 Orthodox Good Friday
Monday Apr-25 Orthodox Easter Monday
Sunday May-1 Labor Day
Monday May-2 Day after Labor Day
Saturday May-21 Independence Day
Sunday May-22 Day after Independence Day
Wednesday Jul-13 Statehood Day
Thursday Jul-14 Day after Statehood Day
Countrypedia

Montenegro
Payroll and Benefits Guide

Last updated: May 31, 2022
Currency
Euro (EUR)
Payroll Frequency
Monthly
Employer Taxes
8.30%

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Overview

Capital
Podgorica
Currency
Euro (EUR)
Date Format
dd/mm/yyyy
Fiscal Year
1 January- 31 December
Public holidays calendar

Contributions

Employer

Employer Payroll Contributions

5.50%

Pension and Disability insurance

2.30%

Health Insurance

0.50%

Unemployment Insurance

8.30% Total Employment Cost

Employee

Employee Payroll Contributions

15.00%

Pension and Disability Insurance

8.50%

Health Insurance

0.50%

Unemployment Insurance

24.00% Total Employee Cost

Employee

Employee Income Tax

0.00%

Up to 700 EUR

9.00%

701 EUR to 1,000 EUR

15.00%

Over 1,0001 EUR

Minimum Wage

General

The monthly gross minimum wage is 532.54 EUR and 6,390 EUR per year (based on twelve monthly payments).

Payroll

Payroll Cycle

In Montenegro, the payroll frequency is monthly, and payment is generally made by the last working day of the month.

13th Salary

There are no provisions in the law.

Working Hours

General

A standard full-time workweek in Montenegro consists of 40 hours per week or 8 hours per day.

Overtime

Overtime cannot exceed more than 10 hours per week for a total of 50 hours worked. In general, overtime must be agreed upon in writing except for emergencies. Overtime pay is generally outlined in collective bargaining agreements, but the minimum legal threshold is 140% of the regular pay.   

Working Week

Monday-Friday

Leave

Paid Time Off

For each calendar year, an employee shall have the right to 20 working days of annual leaveFor employees with a six-day workweek, the entitlement is increased to 24 working days.

Public Holidays

There are 13 public holidays.

Sick Days

Employees receive 70.00% compensation from their employer for the first 60 days of sick leave and then after from social security. 

Employees are obligated to provide their employers with a medical certificate within three days of starting their sick leave. 

Maternity Leave

Pregnant employees are entitled to receive 98 days of paid maternity leave at the employees’ regular pay rate.  

Maternity leave should start 28 days before the due date, and the remaining 70 days are taken after childbirth. 

Paternity Leave

The paternity leave entitlement is included in Parental leave.

Parental Leave

Employees can use parental leave after the completion of maternity leave for a duration of 365 days. Each parent is entitled to an even share of the leave. Parental leave can be transferred from one parent to the other upon expiry of 30 days from when the parental leave was started. If this is done, the parent who transferred the right to the other parent shall not be entitled to the continuation of the use of parental leave.

Other Leave

Depending on the collective agreement or employment contract terms, an employee may be allowed additional leave types approved between the employer and employee. Employees are entitled to up to 7 days of paid leave for: 

  • Matrimony 
  • Birth 
  • Professional examinations
  • Death of an immediate family member 

Termination

Termination Process

Employers can terminate a fixed-term contract for business, personal, or worker misconduct. It requires notice and a written explanation for the termination. If the reason is misconduct, a warning needs to be given, and the employee gets a chance to explain their actions.  

Notice Period

A written notice must be given at least 30 days before the date of termination of employment unless the contract or collective agreement states otherwise.

Severance Pay

Severance pay should be outlined in the employment contract or collective agreement and should not be less than three times the average monthly salary, free of taxes and contributions across the previous four months.

Probation Period

The probationary period is defined in the collective agreement or employment contract and must not exceed six months.  It is common to practice in Montenegro for probation periods to be three months. 

VISA

VISA

Business visitors may enter under a short-stay C visa, which allows entry and stay for up to 90 days in a 180-day period. Allowable activities are not regulated by law. As the labor inspectorate has wide discretion in assessing compliance, activities conducted on business visits should be limited. 

The main work authorization category is the Temporary Residence and Work Permit, which can be used for both intracompany transferees and locally hired employees. The permit may be granted for one year initially and is renewable.​

VAT

General

VAT is 19% standard rate.

Version History

May 31, 2022
The monthly gross minimum wage is now 532.54 EUR and 6,390 EUR per year (based on twelve monthly payments).
Payroll contributions and personal income tax rates have been updated.
Stay up to date on payroll & employment law changes

Questions & Answers

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Murad
Murad
9 months ago

I need to know the method of calculating social insurance for employees. If the employee receives a basic salary of 400, how much will the total salary. I need to know the social insurance calculation. Can you send the method of calculation

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