Local Providers
We can Determine the top Payroll solutions in Montenegro locally for you
Global Providers
Expand your business & relocate employees to Montenegro using top global
PEO / EOR providers
Overview
Euro (EUR)
CURRENCY
Podgorica
CAPITAL
monthly
PAYROLL FRECUENCY
13
PUBLIC HOLIDAYS
0 to 8.30
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Montenegro
Employer
Company Payroll Contributions
0% - 5.50%
Pension and Disability Insurance
0% - 2.30%
Health Insurance
0% - 0.50%
Unemployment Insurance
0% - 8.3%
Total Employment Cost
Employee
Worker Payroll Contributions
0%- 15%
Worker Payroll Contributions
0%- 8.50%
Health Insurance
0%- 0.50%
Unemployment Insurance
0% - 24%
Total Employee Cost
Employee Income Tax in Montenegro
Employment Income Taxes
0%
Up to 700 EUR
9%
701 EUR to 1,000 EUR
15%
Over 1,0001 EUR
Payroll Contributions in Montenegro
Payroll Cycle
With a PEO, you can pay the payroll cycle in your company. In this case, in Montenegro is monthly and the employer pays it on the last day of the month.
13th Salary
In the law, there are no provisions for the payment of these days.
Employee Benefit in Montenegro
Visa and work permit in Montenegro
People who wish to enter the country for business may opt for a short-term C visa. Thus, you can stay for 90 days in 180 days. In addition, the laws of the country do not regulate the activities allowed for this visa in the country. However, the labor inspection is rigorous when assessing compliance and therefore the activities during visits have a limit.
The most important category of authorization for employee onboarding is the Temporary Work and Residence Permit. In this case, it works for company transferees, as well as for locally hired workers. Likewise, the permit is valid for 1 year and the worker can renew it.
VAT in Montenegro
In Montenegro VAT is at a standard rate of 19%.
Working Hours in Montenegro
General
By hiring an Employer of record in Montenegro, you can manage the work week which is 40 hours per week and 8 per day.
Overtime
In Montenegro, overtime cannot exceed 10 hours per week, for a total of 50 working hours. Also, the overtime treaty must be in writing unless it is an emergency. Likewise, with Payroll outsourcing, you will be able to pay overtime, which has a legal limit of 140% of the base salary.
Working Week
Monday to Friday.
Employee Termination in Montenegro
Termination Process
With an Employer of Record in Montenegro, you can manage the termination of an employment contract, which can be for personal, work, or business misconduct. In this case, the employer is required to present the reason for the termination of the contract in writing. In addition, if the termination was for misconduct, the employer will give a warning and the opportunity for the worker to explain the reason for his failure.
Notice Period
The employer must give prior written notice 30 days before the termination of the employment contract. However, the employer will give advance notice under the collective agreement or the employment contract.
Severance Pay
With global employment outsourcing, seamlessly manage severance pay. In this case, the compensation must be the one contemplated in the contract or collective agreement, which will be paid by the employer 3 times the average monthly salary. In addition, it must be free of taxes and contributions for the previous 4 months.
Probation Period
In this case, hire and onboard workers in Montenegro is easy with contractor management services. Likewise, the trial period for the workers to be incorporated will depend on the contract or labor agreement and should not exceed 6 months. In addition, commonly, in the country, the trial periods vary between 3 and 6 months.
Employee Leaves in Montenegro
Paid Time Offs
A worker is entitled to 20 working days of vacation per year. In addition, for employees who work 6 days a week, the employer must increase vacations to 24 days.
Public Holidays
There are 13 national holidays throughout the year.
Vacation Holidays
There are 20 vacation holidays throughout the year.
Sick Days
The international PEO services will allow you to easily manage sick leave for your workers. In this case, the employer will cancel 70% during the 60 days of illness, and later the social security will. However, workers must submit the medical certificate to their employer within three days of the onset of the illness.
Paternity Leave
Parental leave is included in parental leave.
Paternal Leave
In this case, workers have the possibility of taking this leave after maternity for 365 days. Besides, both parents are entitled to equal shares of the leave. Also, the leave can be moved from one parent to the other after 30 days from the start of the parental leave.
Thus, the father or mother who has transferred the right may not continue the right to use parental leave.
Other Leave
With an Employer of record in Montenegro, manage the additional licenses in your company according to the employment contract or collective agreement. In this case, employees are entitled to 7 days of paid leave for:
- Birth.
- Marriage.
- Death of an immediate family member.
- Professional exams.
Maternity Leave in Montenegro
With an Employer of Record in Montenegro, you will manage and pay for maternity leave in your business. Likewise, this leave is for 98 days paid according to the regular salary of the worker. Also, the leave will begin 28 days before the birth and the rest 70 days after the birth of the child.
There are 98 leave throughout the year.