It is one of the world’s youngest countries, gaining independence from Serbia in 2006.
Payroll and Benefits Guide - Montenegro
Fun Facts
Montenegro’s national symbol is the double-headed eagle, which can be seen on its flag and coat of arms.
Montenegro’s official language is Montenegrin, though Serbian, Bosnian, Albanian, and Croatian are also widely spoken.
It is a popular filming location for Hollywood movies due to its picturesque scenery.
Montenegrins are known for their warm hospitality and strong sense of community.
Montenegro has a small but emerging wine industry, producing some noteworthy red and white wines.
Contributions
Employee Payroll Tax
| Contribution Type | Rate |
| Pension and Disability Insurance | 15.00% |
| Health Insurance | 8.50% |
| Unemployment Insurance | 0.50% |
Employer Payroll Tax
| Contribution Type | Rate |
| Pension and Disability Insurance | 5.50% |
| Health Insurance | 2.30% |
| Unemployment Insurance | 0.50% |
Payroll
Payroll Cycle
The payroll cycles is monthly.
13th Salary
There are no provisions in the law regarding 13th salaries.
Work Hours and Week
A standard full-time working week in Mongolia consists of 40 hours per week or 8 hours per day.
Overtime
Employees are allowed to work up to 10 hours of overtime per week, making the maximum total weekly working hours 50. Moreover, the average working hours, including overtime, must not exceed 48 hours per week within a four-month period for any employee.
Leave
Paid Time Off
Each calendar year, employees are entitled to 20 working days of annual leave.
Public Holidays
There are 9 public holidays.
Sick Days
Employees receive 70% compensation from their employer for the first 60 days of sick leave and then after from social security.
Maternity Leave
Pregnant employees are eligible to receive 98 days of paid maternity leave at their regular pay rate.
Maternity leave should commence 28 days before the expected due date, and the remaining 70 days are to be taken after childbirth. During this period, the employee will receive their regular salary as part of the maternity leave benefits.
Paternity Leave
The paternity leave entitlement is included in parental leave.
Parental Leave
After completing maternity leave, employees have the option to take parental leave for a duration of 365 days. The leave can be shared equally between both parents.
Termination
Termination Process
Under a fixed-term contract, employers do have the right to terminate the contract for various reasons, including business-related needs, personal reasons, or misconduct by the employee.
Notice Period
The typical notice period is around 30 days,
Severance Pay
Severance pay should be outlined in the employment contract or collective agreement and should not be less than three times the average monthly salary, free of taxes and contributions across the previous four months.
Probation Period
Probation Period
The probationary period is defined in the collective agreement or employment contract and must not exceed six months.
Immigration
Business visitors entering the country can do so with a short-stay C visa, which permits them to stay for up to 90 days within a 180-day period.
However, it’s important to note that the activities allowed under this visa category are not specifically regulated by law. As a result, the labor inspectorate has broad discretion in evaluating compliance, meaning that the scope of activities conducted during business visits should be limited to avoid potential issues.
For individuals intending to work in the country for an extended period, the primary work authorization category is the Temporary Residence and Work Permit.
For Work Permits
Temporary Residence and Work Permit
VAT
VAT is 21% standard rate.