Montenegro is a Balkan country with rugged mountains, medieval villages, and a narrow strip of beaches along its Adriatic coastline. It is bounded by the Adriatic Sea and Croatia (southwest), Bosnia and Herzegovina (northwest), Serbia (northeast), Kosovo (east), and Albania (southeast). The service-based industry is the major economic driver of the country’s economy.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Montenegro.

Capital :
Podgorica
Currency :
Euro (EUR, €)
Languages spoken :
Montenegrin
Population :
620,173 (2021 est.)
Minimum wage 2022 :
€450 per month
Cost of Living index :
$$ (87 of 139 countries)
Payroll Frequency :
Monthly
VAT - standard rate :
21%
GDP - real growth rate :
12.4% (2021 est.)

Statutory Holidays

The national holidays mentioned below are valid for the year 2022.

Date
Holiday Name
Extra Information
January 1-2
New Year's Day and Holiday
January 6-8
Orthodox Christmas Holiday
Movable
April 30
Orthodox Good Friday
Movable
May 1-3
Labor Day Holiday
May 3
Orthodox Easter Monday
Movable
May 21-22
Independence Day Holiday
July 13-14
National Day Holiday

Contract Sharing Time


The approximate time for sharing the contract with an employee in Montenegro is 7 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

What You Need To Know


  • The employer is obliged to report a vacancy to the Employment Bureau in a prescribed manner and the Employment Bureau is obliged, at the request of the employer, to publicly announce the vacancy.
  • Preliminary testing of working abilities, as a special condition for work, can be carried out if it is provided by the advertisement about the vacancy.
  • The employer is obliged to register the employee for compulsory social insurance (health, pension, disability insurance, and unemployment insurance) on the day of starting work, and to submit the application to the competent authority within eight days of entry to work.

Labor Conditions


Working Hours

Full-time work is 40 hours in a working week. A collective agreement may determine full-time work shorter than 40 hours in a working week. 

An employee who works full time has the right to rest during the working day for at least 30 minutes. An employee who works longer than four and shorter than six hours a day has the right to rest during the working day for at least 15 minutes.

Overtime

Overtime may last only as long as is necessary to eliminate the causes for which it was introduced, provided that working hours do not exceed 48 hours per week on average, within a period of four months. The maximum duration of weekly working hours may not exceed 50 hours. A collective agreement may provide for a maximum duration of 250 hours on an annual basis.

The overtime rate is determined in collective agreements or employment contracts.

 

Probation Period

The probation period must not exceed six months. The length of the probationary period and the manner of conducting the probationary period must be determined by a collective agreement with the employer or an employment contract.

 

Termination Notice Period

A written notice must be given at least 30 days before the date of termination of employment unless the contract or collective agreement states otherwise.

Leave / Time Off

Annual Leave

In each calendar year, the employee has the right to annual leave determined by the collective agreement of at least 20 working days. Part-time workers are entitled to at least 30 working days of annual leave. Employees who work six days per week are entitled to at least 24 working days of annual leave.

Sick Leave

An employee has the right to be absent from work in cases of temporary incapacity for work. The employee is obliged to submit a certificate of a doctor of medicine no later than three days from the day of the temporary impediment to work, in person, or through another person. 

The first 60 days of incapacity are paid by the employer (who is then reimbursed by the Health Insurance Fund), and then directly from the Health Insurance Fund for a maximum period of 10 months.

Parental Leave

Parental leave is the right of each parent to use leave from work for the purpose of caring for a child.

Parental leave begins after the end of maternity leave and it lasts until the expiry of 365 days after the childbirth. Parental leave may be used by both parents in equal parts, but not simultaneously. If one parent started using the parental leave, the other parent may continue to use it after the expiry of 30 days from the commencement of the leave.

 

Child Care Leave

One of the parents has the right to be absent from work until the child reaches the age of three without compensation. During the absence from work, the employee has the right to health and pension disability insurance, whilst other rights and obligations are suspended.

 

Maternity Leave

An employed woman is entitled to paid maternity leave of 98 days, of which 28 days have to be taken before the expected day and 70 days from the birth of the child. Maternity leave of 70 days from the birth of a child may be used by both parents at the same time if two or more children are born.

 

Paternity Leave

The paternity leave entitlement is included in Parental leave.

 

Adoption Leave

One of the adoptive parents of a child under the age of eight has the right to be absent from work due to child care for one year continuously with salary compensation.

Other Types of Paid Leave

An employee has the right to leave from work with salary compensation (paid leave), in case of marriage, the birth of a child, serious illness of a close family member, taking a professional exam related to performing work with the employer, and in other cases determined by collective agreement and employment contract.

The duration of paid leave is determined by a collective agreement and an employment contract.

Unpaid Leave

An employee has the right to unpaid leave from work during and in cases determined by the collective agreement and employment contract. During the absence from work, the employee has the right to health insurance, and other rights and obligations from work and on the basis of work are suspended. The health insurance contribution referred to in this paragraph must be paid by the employer.

Statutory Benefits

The Montenegrin social security scheme provides basic coverage including:

  • Sickness and maternity insurance;
  • Old-age, survivors’ and disability pensions;
  • Insurance against accidents at work and occupational diseases;
  • Unemployment insurance;
  • Family benefits.

An overview of employer contributions towards statutory employee benefits is presented below:

BenefitEmployer Contribution
Pension and Disability Insurance5.5%
Unemployment Insurance0.5%

NOTE: Employers are required to pay an additional amount of between 6% and 28% of the gross wage towards the Pension and Disability Insurance for employees working in difficult and dangerous conditions for health.

Health Insurance

Employees in Montenegro have the right to:

  • Health care;
  • Compensation for earnings during temporary incapacity for work;
  • Compensation for travel expenses related to the use of healthcare.

Health insurance contributions borne by both employee and employer were abolished from January 2022. Health Insurance is now fully funded by the state.

Other Insurances

Accident Insurance

Employers are required to pay an additional amount of between 6% and 28% of the gross wage towards the Pension and Disability Insurance for employees working in difficult and dangerous  health conditions.

The following are covered by the insurance:

  • Accidents at work;
  • Commuting accidents;
  • Occupational diseases.
Unemployment Insurance

Employers contribute 0.5% of the gross wage towards unemployment insurance.

To claim daily allowances in the event of unemployment, the person concerned must prove a period of insurance of at least 12 months without interruption during the last 12 months or, in the event of interruption, during the last 18 months.

Public Pension

Employers contribute 5.5% towards the Pension and Disability insurance.

The legal retirement age in 2022 with a contribution period of at least 15 years is:

  • 66 years and six months for men;
  • 62 years and three months for women.

Other Statutory Benefits

Education Allowance

This allowance is paid by the social action center to help a salaried parent who is working part-time to attend to a sick child in intensive care. It consists of an indemnity equal to 50% of the salary.

Invalidity Pension

Employers contribute 5.5% towards the Pension and Disability Insurance.

An invalidity pension may be awarded where the incapacity for work, whether or not linked to the professional activity results in a permanent loss, total or partial, of the insured person’s ability to perform the tasks which they performed before the risk occurred.

Disclaimer

The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.

Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.

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