Hire employees in Montenegro. No entity needed.
Usually, to hire in Montenegro, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Montenegro also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Montenegro quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
All the necessary benefits for Montenegro
built right in
Deel allows you to provide localized benefits for employees in Montenegro within minutes. All in one manageable online dashboard.
- Pension Insurance
- Public Health Insurance
- Unemployment Insurance
Our quickstart guide to hiring in Montenegro
Navigate the tabs below to learn everything you need to know about hiring an employee in Montenegro
Minimum Wage Requirements
The minimum wage for employees in Montenegro is EUR 450 per month. The minimum wage for part time employees is EUR 225 per month.
In Montenegro, annual salary increments for workers are determined by their years of service.
Individual Income Tax
The individual income tax ranges up to 15%. Income tax is calculated based on the income of the person.
- Up to EUR 700 per month - 0%
- From EUR 701 to EUR 1.000 per month - 9%
- Over EUR 1.001 - 15%
The employer cost is generally estimated at 8.5% of the employee salary.
- Pension Insurance - 5.50%
- Unemployment Insurance - 0.50%
- Labour Fund 0.20%
- Chamber of Commerce 0.27%
- Municipality Surtax 15%*
*The municipality surtax is an employer cost that must be paid based on employee’s taxes. Since it is a surtax, it will be a percentage of the tax, not from the total of the gross salary.
Overtime Pay & Maximum Hours
Standard working hours are 8 hours per day, 40 hours per week. The standard work week is from Monday to Friday.
Overtime payment is mandatory. Employees can work a maximum of 250 hours of overtime a year. For additional hours, employees are paid:
- 140% of the hourly rate on standard working hours.
- 180% of the hourly rate on weekends.
- 180% of the hourly rate on public holidays.
Employees have the entitlement to paid sick leave for a period of up to 365 days. The rates and payers for this leave vary depending on its duration:
- Up to the 60th day, the employee will receive 70% of the salary paid by the employer.
- From the 60th day up to 360 days, the employee will receive 70% of the salary paid by Social Security.
Terminating employments in Montenegro can be a complex process. The termination documentation must be notarized in the presence of both the employee and a company representative.
Compliant terminations may occur through the following means:
- Voluntary resignation by the employee
- Mutual agreement between the parties
- Unilateral termination by the employer based on:
- Probation period evaluation
- Objective grounds
- Disciplinary reasons
- Unsuitability for the job performance
- Expiration of the employment contract
Severance for Employees
Paid Time Off
Full-time employees are entitled to 20 working days of paid time off (PTO) a year. PTO accrues monthly at 1.66 days per month.
If the employee has a working week of 6 days, the minimum time off will be 24 working days. Employees must take at least 10 working days in a row during each calendar year.
Montenegro celebrates 14 national holidays and no regional holidays.
National public holidays include:
- New Year's Day
- Day after New Year’s Day
- Orthodox Christmas Eve
- Orthodox Christmas
- Orthodox Good Friday
- Orthodox Easter Day
- Orthodox Easter Monday
- May Day Monday (Labour Day)
- May Day Tuesday (Labour Day)
- Independence Day Monday
- Independence Day Tuesday
- Statehood Day Thursday
- Statehood Day Friday
- Njegos's Day, Montenegrin Culture Holiday
Employment Contract Details
Contracts must be in Montenegrin and may also be bilingual. They must be documented in writing and duly signed in wet ink by both parties.
A contract should encompass the following details:
- Full name
- Commencement date
- Duration of employment
- Job description
- Termination conditions
Hiring in Montenegro, hassle-free
With Deel, your business can easily hire employees in Montenegro. No more worrying about local laws, complex tax systems, or managing
international payroll. Deel takes care of everything in 150+ countries.
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*of employee salary