The indefinite (permanent) employment contract is the default and legally preferred contract type. It has no fixed end date and continues until terminated by either party for a lawful reason, resignation, retirement, or mutual agreement.
May be used for a specific task, project, or temporary need. As of 13 August 2024, maximum cumulative duration reduced from 36 to 24 months. Once the limit is reached, employer must offer indefinite or end employment; continued employment beyond the limit converts to indefinite by law.
Standard hours are 40/week. Overtime capped at 10 hours/week, compensated at minimum 140% of regular hourly rate.
Commonly set at ~3 months but may extend to the statutory maximum of 6 months. Either party may terminate during probation with minimum 5 working days' notice.
Montenegro's Labour Law does not mandate a 13th or 14th month salary; any bonuses are discretionary or CBA-governed.
No broad statutory job-title quota scheme for nationals. Non-EU/EEA foreign nationals generally require a work and residence permit via the Employment Agency of Montenegro (typical processing 2-6 weeks). Job postings must include gender-neutral language and a starting salary/range under 2026 pay-transparency amendments.
Under the 'Europe Now' reforms, mandatory health insurance contributions (both sides) were abolished 1 January 2022, and the employer's pension/disability (PIO) share was reduced from 5.5% to 0% effective 1 October 2024. The only remaining employer-side statutory contribution is Unemployment Insurance at 0.5% of gross salary.
Employees contribute 10% for Pension and Disability Insurance (PIO, reduced from 15% on 1 Oct 2024) plus 0.5% for Unemployment Insurance, totaling 10.5%. Mandatory health insurance (previously 8.5% employee-side) was abolished 1 January 2022.
In addition to statutory leave, employees are entitled to the following statutory benefits:
Montenegro's social security system was substantially reformed under the 'Europe Now' and 'Europe Now 2' programs (2022 and October 2024).
No separate employer-purchased workers' compensation insurance. Occupational injury/illness sick leave is compensated at 100% of average salary (vs 70% for ordinary illness), paid by the employer for the first 60 days and the Health Insurance Fund thereafter.
Employees dismissed for economic, technological, or organizational reasons are entitled to statutory severance.
Montenegro has no statutory 13th or 14th month salary requirement. Any additional annual bonus is discretionary or CBA/contract-governed.
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. RemoFirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees are paid on time. To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.
Whenever the employee or employer has a question about, or anything else related to international employment, they can speak with our customer support team to get answers from our team of experts.