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Employment contracts in Montenegro
Fixed-term contracts are permitted for up to 2 years.
It is legally required to put a written employment contract in place in Montenegro, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Montenegro should always state the salary and any compensation amounts in euro.
Working hours in Montenegro
In general, the workweek is 40 hours.
Holidays in Montenegro
Montenegro celebrates 8 national holidays, many of which are multi-day events:
- New Year’s Day
- Orthodox Christmas Eve
- Orthodox Christmas
- Orthodox Good Friday
- May Day
- Orthodox Easter Monday
- Independence Day
- Statehood Day
Vacation days in Montenegro
In general, employees are entitled to 21 days of paid annual leave.
Additionally, employees are eligible for up to 7 days of paid leave for:
- Matrimony
- Birth (separate from maternity leave – see laws below)
- Professional examinations
- Death of an immediate family member
Montenegro sick leave
Employees are eligible for at least 5 paid sick days per year.
Maternity/paternity leave in Montenegro
Female employees are entitled to up to 365 days of maternity leave, which can start up to 45 days before the birth and not later than 28 days before the birth. They may not return to work until at least 45 days after the birth. Maternity leave pay is outlined in the labor law. If the employee returns to work before using all of the leave, the father may use the balance.
After the maternity leave, either parent can work half time until the child turns 3 years old.
A parent can also take unpaid leave until the child turns 3 with job protection.
Health insurance in Montenegro
Montenegro has universal, compulsory health insurance. Employers contribute 2.3% of wages and employees contribute 8.5% of wages.
There are also private clinics available for which supplementary health insurance can be purchased, and dental care is generally paid for out of pocket.
Montenegro supplementary benefits
Common benefits include supplementary health insurance, meal allowance, and transportation allowance.
Termination/severance in Montenegro
Probationary periods of up to 6 months are permitted. If after 3 months, the employee’s performance is not satisfactory, their supervisor can request a skills review and a commission to assess will be formed. If the commission agrees with the supervisor, the employee can either be transferred to a more suitable job or terminated.
Employees may be terminated for just cause and must provide written notice of at least 30 days. The employee has 5 days to respond.
Employees are generally eligible for severance pay of at least 1/3 of their monthly pay in the last 6 months for each year of employment, with a minimum of the equivalent 3 months’ of the employee’s pay or average Montenegrin pay, whichever is more favorable to the employee.
Paying taxes in Montenegro
Employers and employees must both make contributions to social security as follows:
- Pension and disability
- Employer: 5.5%
- Employee: 15%
- Health insurance
- Employer: 2.3%
- Employee: 8.5%
- Unemployment insurance:
- Employer: 0.5%
- Employee: 0.5%
Why G-P?
At G-P, we help companies unlock the power of the everywhere workforce through our industry-leading global employment platform. Let us handle the complex and costly tasks involved in finding, hiring, onboarding, and paying your team members, anywhere in the world, with the speed and guaranteed global compliance your business needs.
Contact us today to learn more.