Employer of Record in Montenegro

General Information

• Currency: Euro (EUR)
• Employer Taxes: 8.3
• Payroll Frequency: Monthly
• Employee Costs: 24%
• Capital: Podgorica
• Fiscal Year: 1 January – 31 December

Main Aspects of the Labour Code

Minimum Wage

General: The monthly gross minimum wage is set at 532.54 EUR, amounting to an annual salary of 6,390 EUR, calculated over twelve monthly payments.

Payroll

Payroll Cycle: In Montenegro, wages are paid on a monthly basis, with payments typically made by the last working day of the month.

13th Salary

There are no provisions in the law.

In Montenegro, workers receive annual salary increases based on their length of service as follows:

• Up to 10 years of service: 0.5% increase
• Between 10 and 20 years of service: 0.75% increase
• Over 20 years of service: 1% increase

Working Hours

General: In Montenegro, a standard full-time workweek consists of 40 hours, typically divided into 8-hour workdays.

Overtime: In Montenegro, overtime is limited to a maximum of 10 hours per week, resulting in a total of 50 hours worked. However, the average workweek, including overtime, cannot exceed 48 hours over a four-month period. Overtime must generally be agreed upon in writing, except in emergency situations. The minimum legal overtime pay is 140% of the regular wage, although collective bargaining agreements may offer different terms.

Under the new general collective agreement, the following apply for extra pay:

Standby duty: Time spent on standby is compensated at 10% of the base hourly wage. An employee cannot be on-call for more than 10 days per month unless otherwise specified in a collective or individual agreement.

Sunday work: Employees receive an additional 80% of their base hourly wage, with exceptions for roles requiring continuous operations (such as aviation, hospitality, and public transport). In the media industry, this rule is effective from July 1, 2023.

Non-consecutive work hours: Employees working non-consecutive shifts (e.g., 9 a.m. to 1 p.m. and 3 p.m. to 7 p.m.) receive a 10% increase over consecutive work schedules. Some exceptions apply.

Leave

Annual Leave (Vacation):

Employees in Montenegro are entitled to 20 working days of annual leave each calendar year. For those working a six-day week, this entitlement increases to 24 working days. At least 10 of these days must be taken consecutively within the calendar year. Any unused leave can be carried over, but it must be used by June 30 of the following year.

Public Holidays

In Montenegro, each public holiday lasts for two days. If the first day of a holiday falls on a Sunday, the following two days are observed as non-working days. If the second day of the holiday falls on a Sunday, employees are given the next working day off as a substitute.

Sick Days

Employees in Montenegro are entitled to 70% of their regular pay from their employer during the first 60 days of sick leave. After this period, compensation is provided through social security. Employees must submit a medical certificate to their employer within three days of starting their sick leave.

Maternity Leave

Pregnant employees in Montenegro are entitled to 98 days of paid maternity leave at their full regular pay. Maternity leave begins 28 days before the expected due date, with the remaining 70 days taken after the birth of the child.

Paternity Leave

The paternity leave entitlement is included in parental leave.

Parental Leave

Employees are eligible for parental leave for up to 365 days following the end of maternity leave. Both parents share this leave equally. After 30 days from the start of parental leave, it can be transferred from one parent to the other. However, once the transfer is made, the parent who transferred their leave will no longer have the right to continue using it.

Other Leave

Depending on the terms of the collective agreement or employment contract, employees may have access to additional types of leave approved by both the employer and employee. Employees are entitled to up to 7 days of paid leave for the following reasons:

• Matrimony
• Birth
• Professional examinations
• Death of an immediate family member

The new general collective agreement provides employees with more paid leave days than the labor act specifies. Employees can also take two consecutive workdays of paid leave within a year for professional exams that are not related to their job. In the case of childbirth, employees are entitled to three workdays of paid leave, even if they have already used their total annual paid leave of 30 days.

Additionally, a union representative is entitled to paid time off for union-related events, both domestically and internationally, provided they submit a written notice of absence at least three days in advance and include proof of the event invitation.

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