Montenegro
Montenegro’s become a hotspot for remote talent. Sweeping Adriatic vistas, ancient fortresses, and favorable policies for remote workers make it a great spot—and if you’ve found someone in Montenegro you’d like to hire, this page is for you. We’ll teach you how to hire talent in Montenegro without stumbling into a months-long procession of paperwork and thousands in fees.
Country snapshot
CURRENCY
Euro (€) (EUR)
EMPLOYER TAXES
8.3%
PAYROLL FREQUENCY
Monthly
OFFICIAL LANGUAGE
Montenegrin
It’s the fastest way to hire globally
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It’s a lot cheaper
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
It’s more flexible for you & your team
Can be less risky than hiring employees
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
Some people want to be employees
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
You might not have as much control over your talent
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
No matter where you’re based out of, we can tell you one thing: Montenegro has different labor laws than your home country (well, unless your home country is Montenegro, of course). If you don’t do things right, you’ll be putting your company at the risk of fines—and risk losing the talent you brought onboard.
Hire talent as contractors
Hire talent as employees
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Montenegro than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Montenegro
Employer tax
Pension and Disability insurance
Health Insurance
Unemployment Insurance
Paid Time Off (PTO)
PTO is calculated by the:
- The minimum annual leave is 20 working days.
- Employees with a job with harsh working conditions where full-time work hours are reduced from 40 to 36 hours per week are entitled to 30 working days.
- Employees who have a six-day long work week are entitled to a minimum of 24 working days of annual leave.
Public Holidays
There are 14 official public holidays.
Sick Days
The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:
- Employees receive 70% compensation from their employer for the first 60 days of sick leave and then after from social security.
- Employees are obligated to provide their employers with a medical certificate within 3 days of starting their sick leave.
Maternity Leave
Pregnant employees receive 98 days of paid maternity leave. 28 days are taken prior to birth and 70 days are taken after childbirth.
Paternity Leave
See parental leave.
Parental Leave
Parental leave can be used after the completion of maternity leave for a duration of 365 days. Each parent is entitled to an even share of the leave.
Parental leave that one parent started using may be transferred to the other parent upon expiry of 30 days from the date when that parent started using the parental leave.
If this is done, the parent who transferred the right to the other parent shall not be entitled to the continuation of the use of parental leave.
Other Leave
None.
Marriage Leave
None.
Bereavement Leave
None.
Termination Process
To terminate an employee, an employer must have sufficient grounds by virtue of law and provide the required notice of termination.
Notice Period
The notice period in Montenegro is:
A written notice must be given at least 30 days prior to the date of termination of employment unless the employer and the employee agreed otherwise
Severance Pay
Severance should not be lower than 3 average monthly wages free of taxes and contributions in the previous semester.
Probation Period
The probationary period is defined by a collective agreement with an employer or the labor contract and shall not exceed six months, except in case of a crewmember of a long-haul merchant mariner, where it may last until the ship returns to the homeport.
Working Hours
Full-time employment is 8 hours a day and 40 hours a week.
Overtime
The maximum total work time per week is 50 hours but cannot exceed 48 work hours per week on average within a four-month period.
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