Min. wage
(x12 payments)
Employer tax
Annual leave
Notice period
30-60 days (by tenure)
Termination and notice info
Updated
Sep 2026

Employer of Record (EOR) in

Montenegro

Ready to employ talent in Montenegro?
Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Montenegro to stay compliant from day one.
Language(s)
Currency
EUR
Capital
Podgorica
People team
Population
0.6 M
Time Off
Public holidays
13
Legal
VAT
21%

Contract Types

Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Montenegro to stay compliant from day one.
DEFAULT
Indefinite contract

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.

REGULATED USE

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.

Employees

Employment basics

Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Montenegro to stay compliant from day one.
WORKING HOURS
40 hrs/week

Standard hours are 40/week. Overtime capped at 10 hours/week, compensated at minimum 140% of regular hourly rate.

PROBATION PERIOD
6 months max

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.

13TH / 14TH SALARY
Not Required

Montenegro's Labour Law does not mandate a 13th or 14th month salary; any bonuses are discretionary or CBA-governed.

JOB TITLE REGULATIONS
Checkmark
Regulated

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.

Legal

Taxes & employment costs

Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Montenegro to stay compliant from day one.
EMPLOYER CONTRIBUTIONS
0.5
%

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.

EMPLOYEE CONTRIBUTIONS
10.5
%

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.

Montenegro applies a progressive personal income tax: 0% up to EUR 700/month, 9% between EUR 700.01-1,000, 15% above EUR 1,000, plus a municipal surtax of 13-15% on the assessed PIT amount. Rates subject to periodic change; reconfirm against the Montenegrin Tax Administration.
Cost Calculator
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Total Cost
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Found talent in another location outside your home base? Know the potential cost using RemoFirst before you commit. Use our calculator to get instant, country-specific employee cost estimates in 185+ countries.

*This calculator provides reliable estimates based on up-to-date local data. While it's not a final EOR quote, it gives you a strong benchmark for planning.

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Time Off

Leave entitlements

Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Montenegro to stay compliant from day one.
Type
Duration
Pay During Leave
Annual leave
20 days
100%
Maternity leave
98 days
100%
Paternity leave
None statutory (shares mother's leave from day 70)
N/A
Sick leave (days 1-3)
Days 1-3
70% (employer; 100% for occupational injury)
Days 4-20
70% (employer) through day 60; 100% for occupational injury
(Days 21+)
70% (Health Insurance Fund) from day 61, up to 365 days; 100% for occupational injury
Special Leave
5 working days
Marriage leave
5-7 working days (shorter for more distant relatives)
Bereavement leave (immediate family)
1 working day
Blood donation leave
1-2 working days
Relocation/moving leave
People Morale

Benefits

Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Montenegro to stay compliant from day one.
Statutory Benefits

In addition to statutory leave, employees are entitled to the following statutory benefits:

EMPLOYER CONTRIBUTIONS

Montenegro's social security system was substantially reformed under the 'Europe Now' and 'Europe Now 2' programs (2022 and October 2024).

  • Pension and Disability (PIO): Employee 10% (reduced from 15% on 1 Oct 2024); Employer 0% (reduced from 5.5%).
  • Health Insurance: 0% both sides — abolished 1 January 2022.
  • Unemployment Insurance: 0.5% employer + 0.5% employee.
  • Annual maximum contribution base ~EUR 75,000-76,000 applies to PIO contributions.
WORKPLACE INJURY PROTECTION

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.

SEVERANCE PAY

Employees dismissed for economic, technological, or organizational reasons are entitled to statutory severance.

  • Primary formula: 1/3 of average monthly salary (preceding 6 months) x years of service, with a statutory floor of at least 3 months' average salary.
  • Retirement: 3x minimum net salary. Death in service: family receives 2x minimum net salary.
13TH SALARY

Montenegro has no statutory 13th or 14th month salary requirement. Any additional annual bonus is discretionary or CBA/contract-governed.

Time Off

Termination & notice

Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Montenegro to stay compliant from day one.
Scenario
Severance
Unfair dismissal
Dismissal without a valid statutory ground, or in violation of protected-category rules, is unlawful. Remedies can include reinstatement and/or compensation for lost wages and damages.
Objective / fair dismissal
Fair grounds include technological, economic, or organizational redundancy, and cessation/restructuring of operations, generally triggering statutory severance and requiring consultation/documentation procedures.
During probation
At least 5 working days' notice, without needing the fuller termination grounds otherwise required.
After probation
Termination requires a valid statutory ground, applicable notice (minimum 30 days), and — for disciplinary dismissals — a documented process giving the employee opportunity to respond.
Notice period requirements are not fully consistent across sources; most converge on a 30-day minimum. Confirm against the specific employee's contract/CBA and current Labour Law text.
Content last reviewed Sep 2026. Employment laws change fast, always verify critical hiring decisions, and talk to our team of international experts.

Hiring in Montenegro FAQ

How RemoFirst employs in Montenegro
It can be prohibitively expensive to establish an entity in every country you want to hire talent in Montenegro, so RemoFirst will hire and pay your employee on your behalf while you manage their daily duties. RemoFirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.
How employees in Montenegro get paid

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).

Full-time Employees vs Global Contractors

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.

Dependable support for employees

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.

More than once, I have had a need or request that was answered not just with a fix, but with a permanent improvement of my service. They go out of their way to give me even better than I ask for, without extra charges. RemoFirst makes it as uncomplicated as possible to have employees in multiple countries. This is a great blessing to our business.
Kenny S.
-
Co-CEO
@
Blomberg Music Productions
RemoFirst is an amazing platform, everything is extremely user friendly and easy to use compared to other tools that I have been using in the past. Inna and the team were on point and replying to my questions in a more than timely manner as well as making our life super easy! Great people and platform, I'll highly recommend it to my network.
Hugo D.
-
Business Ops & Strategy Manager
@
Aflorithmic
EORs can be really, really complex and there is so many different grey areas involved. But working with RemoFirst, they're able to make things clear and concise. It's been a fantastic relationship and they partner really well with all the teams that need to be involved in our hiring process.
Leanne T.
-
Manager of HR Business Operations
@
PandaDoc
RemoFirst enables us to compliantly hire and manage employees in countries where we lack an entity, saving time and costs as we scale Creatio globally. They offered the best pricing among all EORs we considered, and the setup process was smooth despite our many questions. The team has been kind and attentive, and the platform is easy to navigate. We’re excited to have completed our onboarding and to be working with RemoFirst!
Olivia H.
-
Global HR Manager
@
Creatio
RemoFirst helps to increase flexibility in the hiring process to ensure remote teams can be successfully onboarded anywhere in the world. Customer service is quick to respond to any queries. Positive onboarding experience. Would recommend to others. Makes hiring smooth and hassle free for remote workers.
Emma T.
-
Program Lead EMEA
@
Trust Lab
RemoFirst ensure to provide an easy and smooth transaction in hiring remote workers across the globe; they will take care of all the nitty gritty part of hiring remote workers without having an entity in a country. They also provide a reasonable pricing that is also appropriate for a startup. What I liked most about RemoFirst is their customer service! Special kudos to our account manager, Victor, who has consistently provided us with speedy and prompt responses from initial contact up to now.
G-Anne B.
-
Recruiter
@
Portcast
RemoFirst enables me to work remotely and stay compliant in my home country. It’s also very helpful for submitting and managing expenses, making it a great addition to my primary HR platform with its admin features. The platform is simple, intuitive, and easy to navigate, with more than adequate functionality for getting things done efficiently.
Martin P.
-
Head of Marketing
@
BetVictor
“We had an entity that was located in a different country that wanted to hire members in the US without affecting the tax status, having RemoFirst help out by being the EOR was the best solution. The setup of the EOR was very easy and we had a dedicated account manger the entire time. Having a dedicated account manager made resolving issues simpler than it would have been otherwise. Nice touch!”
Weston M.
-
Financial Controller
@
Truffle Ventures
When we were first looking into partnerships to support our remote team, the complexity and options were overwhelming. RemoFirst was patient and explained how things work, often answering questions that I know were outside of what they technically do. This made me feel informed as a business owner and showed how the team goes above and beyond. Our team members who we've hired using our Remofirst partnership had glowing things to say about the experience.
Rachel W.
-
CEO
@
Vinebase
I had some details to be clarified with the contract, but the staff was very helpful in helping me sort it out. Also, the laptop delivery arranged by RemoFirst was a breeze! The device arrived the next day!
Jane Ruth A.
-
Client Success Consultant
@
Osome
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