Montenegro has a population of about 600,000 people, with key industries including agriculture and services. The corporate tax rate is 9%, and the tax year corresponds with the calendar year.
Labor and Payroll considerations in Montenegro:
- Fixed term work contracts have a maximum length of 36 months, with overtime hours of 250 per year maximum
- Minimum wage is €331 per month ($392 USD)
- Collective bargaining can be based on industry at the national, sector, or company level
- Income tax and social security are withheld from employee pay
- Employers must contribute to social security
- Foreign workers need a residence and work permit to work and live in Montenegro
- There is an annual quota for hiring foreign workers, and employers must try to hire local talent before hiring a foreign worker
Montenegro has made several amendments to tax law to help the economy move forward. Mandatory VAT tax registration has been changed from £18,000 to £30,000, and new exemptions for personal income tax and social security contributions for employees based on average monthly salary. Talk to our accounting and tax specialists to understand the regulations and if they apply to your organization.
If you are just getting started in Montenegro or need to simplify operations, Blue Marble has a cloud-based payroll platform with aggregated monthly reporting to manage payroll across all countries and currencies. Get real-time access and ensure compliance for your organization. Our US-based service team and in-country experts can help when questions come up. Talk to us today about simplifying payroll in Montenegro: click here