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Euro is the official currency of Montenegro Its currency symbol is €, EUR.
Estimated at 8.3% of employees salary
Montenegrin is the official language of Montenegro
The population of Montenegro is 625,000
Employees are paid monthly
To start growing your team in Montenegro you must establish a local entity – including an account with a local bank, a local office and an address registered as a subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months. Emerald can hire and payroll your workers quickly and compliantly with their ‘ready to go’ entity. Make growing your team simple with Emerald as a global partner.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Hiring employees in Montenegro comes with distinct advantages and some challenges. On the positive side, Montenegro offers a relatively low cost of labour compared to many Western European countries, which can be attractive for companies looking to manage expenses while accessing a skilled workforce. The country’s strategic location in Southeast Europe provides a gateway to the broader Balkan market, and Montenegrins are known for their high level of language proficiency, including English, which can facilitate communication and integration into international teams.However, there are challenges as well. The labour market can be relatively small, which might limit the availability of highly specialized skills. Additionally, navigating local regulations and bureaucratic processes can be complex, particularly for foreign businesses unfamiliar with the local legal landscape. Employment laws, including those related to termination and benefits, require careful compliance to avoid legal issues.
Montenegro offers a skilled and multilingual workforce at competitive labour costs compared to Western Europe, making it an attractive destination for remote talent acquisition. The country’s growing tech sector and high level of education contribute to a pool of qualified professionals, especially in IT and customer support roles. Additionally, Montenegro’s favourable time zone, which aligns well with both European and Eastern markets, facilitates smooth collaboration with remote teams. The country’s commitment to improving its digital infrastructure supports efficient remote working conditions. Furthermore, with a stable political environment and favourable business regulations, Montenegro provides a secure and reliable setting for remote employees.
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| Pension Insurance | 5.3% |
| Health Insurance | 3.0% |
Probation Period: defined in the collective agreement or employment contract and must not exceed six months.
Emerald Technology can onboard employees in Montenegro within 48 hours.
Restrictive Covenants: In Montenegro, restrictive covenants are permissible but must be reasonable in scope and duration to be enforceable. They generally include non-compete clauses, which prevent employees from engaging in similar business activities or working for competitors for a specified period after leaving the company. These restrictions should be clearly defined in the employment contract and are enforceable if they do not excessively limit the employee’s right to work or harm public interest. Additionally, Montenegrin labour law requires that these covenants be mutually agreed upon and compensated fairly to be legally binding.
In Montenegro, health insurance is part of the country’s healthcare system funded by a public health insurance model that covers many healthcare services. Health insurance is mandatory for all residents and citizens to reduce significant healthcare expenses and this is managed by the Health Insurance Fund of Montenegro. Foreign workers also require health insurance, privately or through the public system. Employers contribute 6.3% of the employee’s gross salary and employees contribute 3.8% of their gross salary to health insurance.
Social Security contributions in Montenegro are compulsory for both employees and employers to fund benefits such as pension, healthcare, unemployment insurance and disability insurance. These contributions are managed by the Fund for Pension and Disability Insurance and the Health Insurance Fund. Employers are required to contribute approximately 18.8% of each employee’s gross salary and employees contribute around 14.8% of their gross salary.
In Montenegro, maternity leave lasts for 365 days, which includes 98 days before the expected delivery date and 182 days after childbirth. During this period, the employee receives maternity benefits amounting to 100% of their average salary, funded through the national health insurance system. To qualify for these benefits, the employee must have made contributions to the social insurance system for at least one year prior to the start of maternity leave.
In Montenegro, paternity leave is typically 3 days. Fathers are entitled to this leave within the first 30 days following the birth of their child. During paternity leave, fathers receive compensation amounting to 100% of their average salary, provided through the national health insurance system. This benefit aims to support fathers in their early involvement in child-rearing.
Employees in Montenegro can take up to 365 days of sick leave per year if the correct medical certificate is provided. The employer should pay 70% of the salary for the first 60 days of sick leave, with the same figure being paid by social security beyond the 60th day.
As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:
When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:
Typically, a minimum of 30th days, unless specified in the employment contract. |
If an employee is made redundant, they are entitled to a payment based on years of continuous service.
Severance pay is typically calculated based on the length of service. The common formula is one-third of the employee’s average monthly salary for each year of service, though specific amounts may vary based on the employment contract or collective agreements. |
Employees are entitled to a minimum of 20 days paid annual leave, unless they work six-day weeks, in which case they are entitled to a minimum of 24 days.
450 Euros per month
Working Hours: The typical working week is 40 hours – 5 days of 8 hours.
Overtime: Overtime work is allowed but must be compensated at a higher rate, typically 126% of the regular hourly wage. There are limits to the amount of overtime an employee can work, usually up to 10 hours per week.
Monthly
There is no legal requirement for bonuses in Montenegro.
Annual Income Range (EUR)Â Â Â Â Â Tax Rate
0 – 8,400Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 0%
Above 8,400Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 9%
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