The employment contract has to be written, discussing basic duties of the employee and employer prior to starting employment. It can be for limited or unlimited time period. However, the trial period should not exceed 6 months.


Salaries are paid on monthly basis. Paydays are usually at the end of the month.

HR & Labor

Working Hours: Full time employment is considered 40 hours per week. Overtime hours should not exceed 10 hours per week. Employee is entitled to 24 consecutive hours of rest per week.


To work in Montenegro, an employee must apply for temporary residence for 12 months term which can be renewed for the next five years. To apply only for a work permit, the employee must either own a property in Montenegro or open their own firm.
Therefore it is suggested that the employee applies for temporary residence as opposed to work permit.

Minimum Wage

The minimum wage is 753 EUR per month.

Pension Fund

The employer contributes 5.5% of the employee wages. Contributions are capped at 50,000 EUR per year.

The employee contributes 15%. Contributions are capped at 50,000 EUR per year.

Severance Payments

The severance pay is 6 months of employee’s average wages.

Advance Notice

The employee must provide the employer with 30 days notice.

Termination Procedure

The employer must provide at least 30 days notice.

Sick Days

The number of sick days that the employee is entitled to is decided between the employer and employee at the initial hiring stage. The employee must inform the employer in first 3 days of the illness.

Public Holidays

There are 15 official paid holidays.

Vacation Days

Employees are entitled to at least 21 days of paid vacation.

Expat Benefits

Expats are entitled to purchase property in Montenegro.

Additional Employee Withholdings

1) Health Insurance
2) Unemployment

1) Employer must contribute 4.3%
2) Employer must contribute 0.5%

1) Employee must contribute 8.5%
2) Employee must contribute 0.5%


VAT is 19% standard rate.