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Montenegro is becoming an increasingly attractive destination for hiring, especially within the Western Balkan countries. With a growing number of professionals in IT, customer support, and remote services, the country offers a solid talent pool at competitive labour costs and represents a promising choice for businesses looking to expand their global teams.
Montenegro is among the most popular global hiring destinations, especially among the Balkan countries. Employers who want to hire talent from Montenegro must be familiar with the country’s legal framework, including minimum wages, working hours, notice periods, employment benefits, and others.
Want to explore more about salaries, employment costs, and legal requirements for hiring in Montenegro? Get our full hiring guide now!
An employment contract in Montenegro can become legally effective once both the employer and the employee sign it. The contract should outline the most important terms of the employment relationship, including job responsibilities, wages, working hours, termination procedures, and others.
Notice periods: 30 days.
Termination of employment: By law, mutual agreement, notice, performance issues, behavioural issues, and collective layoffs.
Want to explore all the details of employment contracts in Montenegro? Get our full template now!
Employers in Montenegro are required to provide mandatory employment benefits in compliance with the country’s labour laws. Many of them also offer extra benefits to stay competitive in the job market. Understanding both of them is essential to attracting and retaining talent.
Get a full breakdown of all the employment benefits available in Montenegro.
Montenegro has a structured tax system where employers must withhold personal income tax from employees’ salaries and contribute to mandatory social security schemes. They must also comply with VAT regulations and other local tax obligations.
Personal income tax rate: From 0% to 15%.
VAT: 21%
Tax allowances: N/A
Additional tax reliefs: Tax exemption for businesses in underdeveloped areas, tax exemption for hiring unemployed workers, flat-rate taxation for small businesses
Curious to learn all the details about Montenegro’s tax allowances and similar tax regulations?
Employers in Montenegro must pay salaries as specified in the employment contract and in compliance with the national minimum wage regulations. Payments must be made regularly and on time.
Salary payment deadline: Monthly, for the previous month.
Taxes and contributions payment deadline: Monthly, for the previous month.
Payroll declarations deadline: Monthly, for the previous month.
Payroll currency: EUR
Montenegro’s labour law is shaped by both national legislation and international treaties. The Constitution of Montenegro is the highest legal authority which guarantees essential rights. These rights are further supported by Montenegro’s labour law, which regulates employment relationships, employee protections, and employer obligations.
Minimum wage: EUR 670
Probation period: Up to 6 months.
Foreign citizens wishing to live and work in Montenegro are required to obtain the necessary work permits and visas. The process, permit type, and costs are different depending on the applicant’s nationality, job role, and length of stay.
Types of permits: Residence and work permit
Process length: 2 to 3 months
Process cost: Starts at €2400
Learn more about obtaining visas and work permits in Montenegro. Get our full country handbook now, or click here to find out more!
EOR services let you legally employ in Montenegro without having your own legal entity there. The EOR will take over the responsibility of being a legal employer, including:
PEO services in Montenegro provide HR and administrative support, while you remain the legal employer. PEO services are ideal for employers who already have legal entities in Montenegro but need support to manage their workforce operations, including:
Native Teams provides a payroll calculator adjusted per Montenegro’s local labour laws. Using our calculator, you can easily estimate net and gross salaries, social security contributions, and other mandatory deductions in the country.
Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.
Last update: August 18, 2025
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Freelancers and gig workers in Montenegro are typically considered independent service providers and must be registered as self-employed to handle their own taxes and contributions. As a client, you’re not responsible for these obligations, but you should ensure that the working relationship doesn’t mirror full-time employment to avoid misclassification risks.
Therefore, it’s essential to have a clear written agreement that defines the scope of work, responsibilities, payment terms, deadlines, and other terms.
