Overview
Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Onboarding
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax
An employer of record in Montenegro takes on the vital role of overseeing crucial elements of employment, including payroll management, ensuring compliance with minimum wage requirements, conducting thorough hiring processes, providing employee benefits, adhering to social security regulations, facilitating healthcare and insurance coverage, implementing leave policies, and ensuring compliance with tax obligations.
| Overview | |
| Continent | Europe |
| Country | Montenegro |
| Capital | Podgorica |
| Time zone | UTC+01:00 (CET) |
| Total Time zones | 1 |
| Working hours per week | 40 |
| Personal Tax filing deadline | 30th April |
| Financial Year | Calendar Year (1st Jan to 31st Dec) |
| Date format | dd/mm/yyyy |
| Currency | Euro (EUR) |
| VAT | the standard rate is 19% |
Employer Payroll Contributions in Moldova
| Employers | % of Gross Salary |
| Pension and Disability insurance | 5.5% |
| Health Insurance | 2.3% |
| Unemployment Insurance | 0.5% |
| Total Employment Cost | 8.3% |
Employee Payroll Contributions in Moldova
| Employees | % of Gross Salary |
| Pension and Disability Insurance | 15% |
| Health Insurance | 8.5% |
| Unemployment Insurance | 0.5% |
| Total Employee Cost | 24% |
Minimum Wages in Moldova
| Minimum Wage | |
| Minimum Wage | The minimum wage in Montenegro is 222 EUR per month. |
Payroll Cycle in Moldova
| Payroll | |
| Payroll Cycle | Monthly |
| 13th Salary | Not required by law. |
Personal Income Tax in Moldova
| Income Tax | |
| Income Range | Tax Rate |
| Up to 700 EUR | 0% |
| 701 EUR to 1,000 EUR | 9% |
| Over 1,0001 EUR | 15% |
Employee Benefits in Montenegro
Mandatory employee benefits in Montenegro primarily consist of the state pension scheme and group personal accident insurance. The state pension scheme is governed by the law on retirement and disability insurance, which provides benefits in cases of old age, disability, death, and bodily damage due to industrial injury or occupational disease. These benefits include old-age pensions, disability pensions, pecuniary benefits for bodily damage, and career allowances. These benefits are designed to ensure the material and social security of contributors.
It's important to note that pension insurance services cannot be provided by brokers, as it is prohibited by law. Supplementary employee benefits in Montenegro are not as common, but healthcare is one of the commonly offered benefits. However, perks or additional employee benefits are not widely practiced in the country.
Please be aware of these mandatory employee benefits and the limitations in pension insurance service providers when considering employment in Montenegro.
Group Personal Accident Insurance is a mandatory requirement for employers in Montenegro, as specified by the law on safety and health at work. This insurance coverage is designed to protect employees in the event of accidents, occupational diseases, and work-related illnesses. It includes benefits for death resulting from accidents or illnesses, as well as coverage for permanent disabilities.
Employers are obliged to provide this insurance to all employees, and the coverage may include additional benefits such as daily compensations and coverage for specific injuries like bone breakages. Typically, employers in Montenegro provide this insurance separately from payroll deductions, and the policy's coverage amount is determined by the employer rather than being based on multiples of the employee's salary.
It's important to note that long-term disability and short-term disability benefits are provided through the government scheme in Montenegro. This means that employees can access these benefits through the established government programs.
By complying with the mandatory requirement of providing Group Personal Accident Insurance, employers in Montenegro ensure the well-being and financial protection of their employees in the face of unforeseen accidents or illnesses.
Healthcare in Montenegro encompasses two types of private medical insurance (PMI): reimbursement PMI (known as voluntary health insurance) and critical illness and surgical cash benefit insurance. These insurance options are primarily offered on a group basis for employees. The latter type is usually added as a rider to a group personal accident (PA) policy. It is worth noting that lump-sum riders are more commonly utilized.
The introduction of lump-sum medical covers addresses the issue of underfunding in state healthcare, which often necessitates patients in state hospitals to pay a significant portion of their treatment costs in cash. These affordable riders are tax deductible for employers. The most prevalent policy variant provides coverage for outpatient costs up to an annual limit of €2,000. Some more generous employers extend coverage to inpatient and outpatient costs with a limit of €5,000.
Approximately 40% of companies in Montenegro offer additional medical insurance, with the best market benefit providing treatment coverage for all employees. While small companies may pay premiums for dependents, larger companies typically offer employee rates for dependents, which are covered by the employee.
Extended healthcare benefits can include prescription drug coverage, supplemental healthcare, hospital stays, dental care, and vision care.
These supplementary employee benefits contribute to the overall well-being and healthcare coverage of employees in Montenegro, providing them with additional financial protection and access to a broader range of healthcare services beyond the basic state-provided coverage.