Employment taxes

• Income tax: 0% on salaries up to €700, 9% flat rate on salaries between €700 and €1000, and 15% on income above that.
• Social security contributions (employee): about 31% of your gross salary, covering pension, health, and unemployment.
• Pension and disability insurance: 20.5%
• Health insurance: 10.2%
• Unemployment insurance: 0.5%
• These contributions are deducted directly from the employee’s gross salary and are also tax-deductible when calculating income tax.
• Employers contribute an additional 2.97% of the employee’s salary, covering: unemployment insurance (0.50%), labour fund (0.20%), chamber of commerce fee (0.27%), and municipality surtax (around 15% on the calculated tax amount, not on gross salary).

Leave policy

• Paid vacation: Minimum 20 working days per year.
• Public holidays: Montenegro celebrates 14 national public holidays.
• Sick leave: Paid by the employer for the first 60 days (70% of salary), and by the social security afterwards also at 70%.
• Maternity leave: 1 year, fully paid, and it's one of the most generous in the region. Social security covers this payment.
• Paternity leave: Typically up to 10 working days after the child's birth. This leave is fully paid, and usually the employer covers it.
• Parental leave: Either parent can use it after maternity leave ends.

Employment termination

• Legal grounds: Redundancy, poor performance, misconduct, voluntary resignation by the employee, or by mutual agreement.
• Notice period: The minimum notice period is 30 days. Both employee and employer can terminate a contract with a written notice.
• Severance pay: Usually one-third of the employee's average monthly wage for each year of service with that employer. It applies in certain cases, especially for termination without cause.

Hiring and contracts

• Employment contracts must be in writing, outlining job title, salary, working hours, and duration. They must be in Montenegrin and can be bilingual.
• Contracts can be indefinite (most common) or fixed-term (up to 24 months).
• Probation periods can last between 3- 6 months.

Payroll and salary payments

• National minimum wage: Аs of 2025, Montenegro has two minimal wages - €800 for employees with educational qualification level VI or higher, and €600 for employees with educational qualification level V or lower.
• Salaries are typically paid monthly, no later than the 10th of the following month.
• Payroll must include gross pay, deductions, and net pay, all clearly shown on your payslip.
• Payments are made directly into a local bank account.

Benefits

Mandatory:

• Health insurance
• Pension contributions
• Unemployment insurance
• Paid annual leave
• Sick leave, maternity/paternity leave

Optional:

• Meal or transport allowance
• Private health insurance
• Flexible working hours or hybrid setup
• Performance-based bonuses

Monthly living cost (Podgorica Edition)

• Rent (1-bedroom in city center) - €400-€550
• Utilities - €100-€130
• Internet - €25
• Groceries - €250-€300
• Monthly public transport - €30
• Coffee, dining, going out - €120-€150

How to get a local ID number

Once you get your residence or work permit, you’ll need a Personal Identification Number (JMBG).

• Apply at the local police administration office.
• Bring your passport, residence certificate, and employment contract.
• You’ll need this number for taxes, social security, and opening a bank account.

For remote workers, the JMBG can also be obtained through temporary residence registration if you plan to stay longer than 90 days.

Social security registration

• Your employer handles registration with Montenegro’s social security system. This includes pension, health, and unemployment coverage.
• If you’re self-employed or a freelancer, you can register and contribute independently through the Tax Administration Office.

Banking

Opening a bank account is simple once you have your residence permit and ID number.
Popular banks include:

• Crnogorska Komercijalna Banka (CKB)
• Erste Bank
• NLB Banka
• Hipotekarna Banka
• Addiko Bank

Online banking is widely used, and most banks offer English-language apps and customer service.

Housing and rental process

• Standard lease terms are 12 months.
• A security deposit (1 month’s rent) is usually required.
• Tenants are protected by law - landlords must provide notice before increasing rent or ending a lease.
• It’s still common to pay rent in cash, but more landlords are switching to bank transfers.

Healthcare system

• Montenegro has a universal healthcare system funded through social security.
• Employees and residents are automatically covered once registered, and you’ll get access to public hospitals and clinics across the country.
• Private clinics and hospitals are also available, affordable, quick, and often English-speaking.

Driving and public transport

• You can drive with your EU or international license for up to 90 days. After that, you’ll need to exchange it for a Montenegrin one.
• Roads are scenic, so driving is an experience on its own.
• Public transport includes buses, taxis, and a small railway network. Bus connections are reliable and affordable, around €3–€5 per ride between major cities.

Emergency and important contacts

• General emergency: 112
• Police: 122
• Ambulance: 124
• Fire service: 123

Work permit and visa requirements

• EU citizens can enter visa-free and stay up to 90 days. To work, they need to apply for temporary residence and employment registration.
• Non-EU citizens, besides a relevant visa, need a work permit before starting employment. The employer usually applies on their behalf. After approval, they receive a temporary residence permit valid for up to 12 months.
• Remote workers often enter on a tourist visa first and then apply for residence once they decide to stay longer.