Employment Law

Employment Contracts in Montenegro

The law requires a written employment contract when recruiting in Montenegro. These contracts should always contain the relevant details of the employment agreement, such as wages, benefits, termination provisions, etc. Although Bosnian, Croatian, Serbian, and Albanian are also common, they are also usually written in the official language of the country of Montenegro. Any reference to currency should be in Euros.

Fixed Term

Indefinite

Montenegro Working Hours

The standard working week for employees in Montenegro is 40 hours, 5 days in total.

Holiday Policy

Montenegro Vacation

Employees in Montenegro are generally entitled to 21 days of paid leave per year. In addition, employees can take up to seven days off for certain personal reasons, such as a wedding or the death of a loved one.

Montenegro Sick Leave

Employees in Montenegro are entitled to up to five days of paid sick leave per year.

Parental Leave in Montenegro

Female employees in Montenegro are entitled to paid maternity leave for up to one year, starting 28 to 45 days before delivery. The father can use the mother's unused leave as paternity leave.

In addition to standard parental leave, parents can take unpaid leave until their child is three years old.

Termination and Dismissal of Montenegro

Employees in Montenegro are generally entitled to one month's notice before terminating their contract. They are also usually entitled to severance pay of one-third of their monthly salary for each year of service with their employer.

Montenegro Taxes

Both employers and employees in Montenegro are required to pay a portion of their wages to social security. For health insurance, pension and disability funds, employers and employees contribute different percentages. For unemployment insurance, both employers and employers pay 0.5%. Montenegro's income tax is 9%. Corporate tax is also 9%.

Health Insurance in Montenegro

Montenegro has a government-funded healthcare system and both employers and employees are required to contribute to compulsory health insurance. Some employers also choose to offer private health insurance as part of their benefits package.

Salary and Benefits

Montenegro’s Compensation Law

The minimum wage in Montenegro is 220 euros per month (effective in 2020).

Welfare Management in Montenegro

Many employees in Montenegro choose to offer employee benefits packages including additional pension contributions, company car allowances, paid time off, holiday bonuses and more. However, setting up a welfare system in Montenegro can be difficult if you are not familiar with the country's complex labor laws, language, and administrative norms.

Outsourcing your benefits administration processes ensures you fully understand and follow the rules, ensuring your compliance and significantly speeding up the process. At Remoly, our Montenegrin employment experts will help you find and arrange your benefits, advise you on your strategy, and ensure compliance with the law.