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Employer of Record Montenegro
Hire staff and expand your business in Montenegro with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in Montenegro designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Montenegro. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Montenegro takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record in Montenegro
A Brief Guide to Montenegro
Montenegro is a southeastern European country situated on the Adriatic coast, known for its stunning landscapes, historic towns, and diverse culture. It is a parliamentary republic, and its capital city is Podgorica. Montenegro gained independence from Serbia in 2006 and has since been working to develop its economy and attract foreign investment. Tourism is one of the main drivers of Montenegro’s economy, with the country’s beautiful coastline, national parks, and cultural heritage attracting millions of visitors each year.
Category | Information |
Location | Southeastern Europe |
Capital | Podgorica |
Official Language | Montenegrin |
Area | 13,812 square kilometers |
Population | Approximately 622,000 |
Currency | Euro |
Major Cities | Podgorica, Nikšić, Herceg Novi, Pljevlja |
GDP (2021) | $6.56 billion USD |
Major Industries | Tourism, agriculture, energy |
Business Culture
Business Culture in Montenegro
In Montenegro, business culture is characterized by a mix of traditional and modern practices. It is essential to be punctual, dress professionally, and exchange business cards during meetings. Montenegrins value personal relationships and prefer to conduct business face-to-face.
Business communication can be direct but also includes small talk to build rapport. Decisions are often made by the highest-ranking individual in the organization, and it is important to show respect for hierarchy.
Payroll and Taxes
Payroll and Taxes in Montenegro
There is no statutory requirement to pay a 13th/14th month of pay in Montenegro.
Employee Taxation
In Montenegro, income tax rates are progressive, with higher income levels subject to higher tax rates.
Taxable Income | Tax Rate |
EUR 701 up to EUR 1,000 | 9% |
EUR 1,000+ | 15% |
Employer Taxation
Employers in Montenegro are also responsible for various employer costs, which include:
Fund Type | Percentage |
Pension and Disability Insurance | 5.5% |
Health Insurance | 2.3% |
Unemployment Insurance | 0.5% |
Pension and Healthcare
Montenegro Pensions
Montenegro has a pay-as-you-go state pension system, funded by contributions from employees and employers. Contributions are calculated as a percentage of an employee’s gross salary, and the rates are as follows:
- Employees: 15%
- Employers: 5.5% for pension and disability insurance
Healthcare in Montenegro
Montenegro’s healthcare system is comprised of a mix of public and private facilities. The public healthcare system is funded by mandatory health insurance contributions from employees and employers. Montenegrins have access to essential healthcare services, including primary care, specialist services, hospital care, and prescription medications.
Employment Law
Employment Law in Montenegro
Relevant Legislation: Montenegro’s employment laws are primarily governed by the Labour Law, which regulates matters such as working hours, minimum wage, annual leave, and employment contracts.
Employment Contracts: Employment contracts in Montenegro can be written or oral, but it is strongly recommended to have a written contract to avoid disputes. The contract should include essential information such as the employee’s position, salary, working hours, and the duration of the contract.
Working Hours: The standard working hours in Montenegro are 40 hours per week, or 8 hours per day. Overtime work is regulated and must be compensated at a higher rate.
Leave: Employees in Montenegro are entitled to various types of leave, including paid annual leave (minimum of 20 working days per year), maternity leave (up to 365 days), paternity leave (15 days), and sick leave.
Overtime:
In Montenegro, overtime work is limited to 10 hours per week and must be compensated at a rate of at least 1.5 times the regular hourly wage. Employers are also required to provide additional compensation or time off in lieu for work performed during weekends or public holidays.
Termination: Terminating an employment contract in Montenegro requires proper notice, which depends on the length of employment. Employers can terminate an employee’s contract if there is a valid reason, such as poor performance, misconduct, or economic reasons. In cases of unjustified termination, employees can seek compensation or reinstatement.
Notice: Both employers and employees are required to give notice before terminating an employment contract. The notice period varies depending on the employee’s length of service. Generally, the notice period ranges from 15 days for employees with less than one year of service to 30 days for employees with more than one year of service.
Severance Pay: Employees may be entitled to severance pay if they are terminated due to redundancy, restructuring, or other reasons not related to their performance or behavior. Severance pay is not provided in cases of termination due to misconduct, resignation, or the end of a fixed-term contract. The amount of severance pay an employee is entitled to depends on their length of service with the employer. In Montenegro, employees must have worked for a minimum of one year to qualify for severance pay, and the amount increases with the number of years of service.
IMMIGRATION
Work Permits in Montenegro
The immigration process in Montenegro is organized and systematic, similar to most countries worldwide. Prospective immigrants usually need to apply for a specific visa or residency permit that corresponds to their reasons for relocating, such as work, education, or joining family members.
Montenegro offers several types of work permits for foreign nationals who wish to work in the country. The specific type of work permit required depends on the applicant’s qualifications, the nature of the job, and the intended duration of the stay. Some of the main types of work permits in Montenegro include:
- Work Permit: This permit is designed for individuals who have a valid job offer from a Montenegrin employer. Applicants must meet certain educational and professional requirements.
- Temporary Work Permit: This permit is issued for short-term employment and is generally valid for up to 12 months. Temporary work permits are typically granted for seasonal work, internships, or other temporary job opportunities.
- Family Reunification Work Permit: Foreign nationals who are married to or in a registered partnership with a Montenegrin citizen or a person with a permanent residence permit may be eligible for a work permit through family reunification. This permit allows the holder to work in Montenegro without restrictions.
Citizens of European Union (EU) countries generally do not need a work permit to work in Montenegro, as they benefit from the freedom of movement within the EU. However, they are required to register with the local Montenegrin authorities if they plan to work and stay in Montenegro for more than three months.
Public Holidays
Montenegro Public Holidays
Holiday Name | Date |
New Year’s Day | 1st January |
Orthodox Christmas Day | 7th January |
Statehood Day | 13th July |
Statehood Day | 14th July |
Independence Day | 21st May |
Independence Day | 22nd May |
Labour Day | 1st May |
Labour Day | 2nd May |
Orthodox Good Friday | Varies |
Orthodox Easter | Varies |
Orthodox Easter Monday | Varies |
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The Benefits
Montenegro Employer of Record Benefits
When you choose Agility EOR to expand in Montenegro, we guarantee an Employer of Record Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in Montenegro so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Montenegro authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Montenegro payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.