Hire employees in Montenegro
With Nomad Global Hire employer of Record (EoR) services, you can easily hire employees in Montenegro, without having to set up your own entity. No risk and fully compliant with HR support included
What to know about Montenegro
Montenegro is a small country with a rich history
Employer Tax
Estimated at 9.3%
Currency
EUR, Euros
Available Employee Benefits
Medical insurance, Meal Vouchers
Employee Tax
Incremental up to 20%
Payroll Frequency
Monthly over 12 payments
Main Universities
Capital
Podgorica
Population
Circa 0.6 Millions
Available Contracts
Fixed Term Contract, Indefinite/Permanent
Montenegro is a young country on the Adriatic coast which official language is Montenegrin. The population is small and the economy is mostly around Services. NOMAD GLOBAL HIRE will manage the local employment for your new employees through its local Employer of Record Services. We will take care of local employment contract, payroll, tax, compliance and any HR questions that you may have.
Payroll, Benefits & Tax in Montenegro
- Average salary in Montenegro is 11,640 Euros per year
- Employer Tax in Montenegro is usually 9.3%
- This includes Social Security contributions at 5.5% for Pension and Disability Insurance
- 2.3% for Health Insurance
- 0.5% for unemployment insurance.
- Employee Tax in Montenegro is split between central country tax and local municipality tax:
- Personal Income tax is 9%, but for salaries over the annual average pay, a surplus tax of 11% is aplied
- Then on top of this, an extra tax of 13% is applied by the municipality / Location where the employee lives.
- Maternity Leave in Montenegro is up to 365 paid days. During this time, leave is paid by the employer and then reimbursed by the Social Security Fund.
- Statutory Leave is 21 days minimum per year up with an additional 7 days for Wedding, birth, Death of a family member and professional examinations.
- Bank holidays: there are 8 national days in 2023 in Montenegro
- Termination can be done for a valid cause in Montenegro, see below
- Notice period is depending on the contract or length of service of the employee in the business
- Payroll Frequency in Montenegro is Monthly over 12 months
The Montenegrin Labour Code is setting the framework for employment in Montenegro. This covers all individual and collective working relationships, Compensation and Benefits, Workers rights as well as Leave (Sick, Parental), employment Termination and Discrimination.
Onboarding and Termination in Montenegro
- Probation period are not mandatory under Montenegrin Labour Law and can be set up in Contracts of employment
- You can hire through Fixed Term Contracts, Indefinite / Permanent contract or BtoB contracts
- Employment Contracts are drafted in Montenegrin but can also be in English (but then has to be both at the same time)
- Termination is Montenegro is generally a straightforward process although as always it requires particular care. In order to be compliant, Termination can occur as such:
- By mutual agreement
- By resignation of the employee
- By expiration of contract
- By the employer on grounds of disciplinary dismissal, failure to perform in probation period or at work, reduction of work or end of the activity
- It is always advised to reach a Mutual Agreement to validate a Termination in Montenegro
Fixed Management Fee
We charge a fixed monthly fee depending on the level of the salary of the hired employee
- Local Contract Management
- Payroll Management
- Tax and Compliance
- HR Support
Employee Nomad set up fee
Everything to get you started on Nomad and ensure piece of mind for you and your new hire
- Sign up to the NOMAD Services
- Benefits Setup (if available)
- Tax authority liaisons
- An additional Deposit of 1 full month salary cost will be required
Estimated Employer tax costs
Employer Tax in Montenegro is estimated around 9.5% (may vary depending on circumstances)
- Pension fund insurance
- Health insurance
- Unemployment insurance
- WFH allowance
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