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.
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Capital :
Podgorica
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Currency :
Euro (EUR, €)
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Languages spoken :
Montenegrin
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Population :
620,173 (2021 est.)
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Minimum wage 2023 :
€450 per month
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Cost of Living index :
$$ (87 of 139 countries)
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Payroll Frequency :
Monthly
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VAT - standard rate :
21%
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GDP - real growth rate :
12.4% (2021 est.)
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The national holidays mentioned below are valid for the year 2024.
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.
Full-time work is 40 hours 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 may only last as long as it 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 be provided for a maximum duration of 250 hours on an annual basis.
The overtime rate is determined in collective agreements or employment contracts.
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.
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.
In each calendar year, the employee has the right to annual leave determined by a 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.
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 for 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 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 lasts until the expiry of 365 days after childbirth. Parental leave may be used by both parents in equal parts, but not simultaneously. If one parent has started using 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 a 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.
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.
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.
The Montenegrin social security scheme provides basic coverage including:
An overview of employer contributions towards statutory employee benefits is presented below:
| Benefits | Employer Contribution |
| Pensions and Disability Insurance | 5.5% |
| Unemployment Insurance | 0.5% |
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.
Employees in Montenegro have the right to:
Health Insurance is now fully funded by the state.
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:
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.
Employers contribute 5.5% towards the Pension and Disability insurance.
The legal retirement age in 2023 with a contribution period of at least 15 years is:
66 years and eight months for men;
62 years and six months for women.
This allowance is paid by the social action centre 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.
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 in which they performed before the risk occurred.
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.
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