Download Montenegro Guide
Public Holidays Calendar
|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|
|Monday||May-2||Day after Labor Day|
|Sunday||May-22||Day after Independence Day|
|Thursday||Jul-14||Day after Statehood Day|
Last updated: May 31, 2022
Payroll and Benefits Guide
Papaya Offers Complete Payroll, PEO and Contractor Management Services For Montenegro
Employer Payroll Contributions
Pension and Disability insurance
Employee Payroll Contributions
Pension and Disability Insurance
Employee Income Tax
Up to 700 EUR
701 EUR to 1,000 EUR
Over 1,0001 EUR
The monthly gross minimum wage is 532.54 EUR and 6,390 EUR per year (based on twelve monthly payments).
In Montenegro, the payroll frequency is monthly, and payment is generally made by the last working day of the month.
There are no provisions in the law.
A standard full-time workweek in Montenegro consists of 40 hours per week or 8 hours per day.
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.
Paid Time Off
For each calendar year, an employee shall have the right to 20 working days of annual leave. For employees with a six-day workweek, the entitlement is increased to 24 working days.
There are 13 public holidays.
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.
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.
The paternity leave entitlement is included in 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.
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:
- Professional examinations
- Death of an immediate family member
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.
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 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.
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.
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 is 19% standard rate.