Guide to employment, payroll and benefits in


Rivermate offers complete payroll, benefits and compliance services for


01. Overview

Last updated: 

August 19, 2021

Ease of doing business
GDP growth

02. Grow your team in


with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in


, particularly if you don't have established local relationships. You can hire employees in


effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Montenegro is a country in the Balkans region of Europe. It shares borders with Serbia to the northeast, Bosnia and Herzegovina to the north and west, Albania to the southeast, and the Adriatic Sea and Croatia to the southwest. It is situated on the Adriatic Sea and is a part of the Balkans. Podgorica, Montenegro's capital and largest city, occupies 10.4% of the country's 13,812 square kilometers and is home to approximately 30% of the population. During the Early Middle Ages, three principalities existed on the territory of modern-day Montenegro: Duklja, which roughly corresponded to the southern half; Travunia, which was in the west; and Rascia proper, which was in the north. In the 14th and 15th centuries, the Principality of Zeta arose. Large portions of southern Montenegro were governed by the Venetian Republic and incorporated into Venetian Albania from the late 14th century to the late 18th century. In the late 15th century, the name Montenegro was first used to refer to the region. After falling under Ottoman rule, Montenegro regained its independence in 1696, first as a theocracy, then as a secular principality, under the rule of the House of Petrovi-Njego. The Great Powers recognised Montenegro's independence at the Berlin Congress in 1878. The nation became a kingdom in 1910. It was annexed by Yugoslavia after World War I. Following Yugoslavia's disintegration, the republics of Serbia and Montenegro declared a federation. Montenegro declared independence and the confederation peacefully disbanded after an independence referendum held in May 2006. Montenegro has an upper middle-income economy and ranks very high on the Human Development Index. It belongs to the UN, NATO, the World Trade Organization, the Organization for Security and Cooperation in Europe, the Council of Europe, and the Central European Free Trade Agreement. Montenegro is also a founding member of the Union for the Mediterranean and is in the process of becoming a member of the European Union.

04. Public holidays

05. Types of leave

Paid time off

A minimum of 20 days of yearly leave is required. Employees whose full-time work hours are lowered from 40 to 36 hours per week are entitled to 30 working days if they work in a job with difficult working conditions. Employees who work a six-day week are entitled to at least 24 working days of yearly leave.

Public holidays

Montenegro recognizes ten public holidays.

Sick days

For the first 60 days of sick leave, employees get 70% reimbursement from their employer, with the remainder coming from social security.Employees must produce a medical certificate to their employers within three days of beginning their sick leave.

Maternity leave

Employees who are expecting a child are entitled to 98 days of paid maternity leave. It is taken 28 days before delivery and 70 days following childbirth.

Paternity leave

Paternity leave is enclosed in parental leave.

Parental leave

Parental leave can be utilized for a total of 365 days once maternity leave has ended. Each parent is entitled to an equal amount of time off. Parental leave taken by one parent may be transferred to the other parent once 30 days have passed from the day it was taken. If this is done, the parent who transferred the right to the other parent will lose the right to utilize parental leave in the future.

Other leave

06. Employment termination

Termination process

Employers must have valid legal grounds and provide the requisite notice of termination before terminating an employee.

Notice period

Unless the employer and employee agree otherwise, a written notice must be given at least 30 days prior to the date of termination of employment.

Severance pay

Severance should not be less than three months' worth of average monthly earnings free of taxes and contributions in the preceding semester.

Probation period

The probationary period is defined in a collective bargaining agreement with an employer or in the labor contract and shall not exceed six months, except for crew members of long-haul merchant mariners, for whom the probationary period may extend until the ship returns to its homeport.

07. Working hours


The workweek is 40 hours but is frequently reduced by collective bargaining agreement terms. Employees who work in a hazardous environment where hazards cannot be eliminated through occupational health and safety measures may have their workweek reduced to as little as 36 hours.


Overtime is permitted only in the event of an emergency. Whenever possible, the employer must provide written notice explaining why the overtime is necessary, identifying the employees who will work overtime, and indicating when the overtime work will begin.

Employers are required to notify the government labor inspectorate if they have employees who work nights (work between 10 p.m. and 6 a.m.) Employees must undergo a medical examination prior to being assigned to night work and must be examined on a periodic basis while working at night, with the employer covering all examination costs.

Overtime cannot exceed ten hours per week on a weekly basis for a total of fifty hours worked. Overtime, with the exception of emergency situations, must be agreed upon in writing. While collective bargaining agreements generally define overtime pay, the legal minimum is 140 percent of regular pay.

08. Minimum wage


Montenegro's minimum wage has been set at 331.3 EUR per month from June 2019.

09. Employee benefits


Montenegro has mandatory universal health insurance. Employers contribute 2.3 percent of salaries, while workers contribute 8.5 percent.

Private clinics are also available, for which additional health insurance may be obtained, and dental treatment is usually paid for out of cash.

Supplemental health insurance, food allowance, and transportation allowance are all common perks.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in


to hire a team takes time, money, and effort. The labor law in


has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into


simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in


give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in


via our Employer of Record / PEO solution.

Ready to get started? Our friendly staff is ready to assist you with all your questions, let's connect.