Establishing and maintaining a Montenegro payroll
One important element of this kind of foreign expansion is hiring locally, and this means setting up a Montenegro payroll. Establishing a payroll in Montenegro involves following a complex set of unique and frequently changing employment laws, which can be a lengthy and difficult process.
At New Horizons, we help organizations from all sectors to build and scale their operations in Montenegro with our payroll outsourcing services. We will handle your organization’s payroll setup and management, giving you full flexibility to focus on your Montenegrin expansion, even if you don’t yet have an established entity in the country.
If you have an entity
For businesses that have already registered an official entity in Montenegro, we offer a comprehensive and tailored payroll outsourcing service. Our expert team will set up and manage your payroll, also handling all of your associated administration, HR, and compliance with local laws.
This level of outsourcing is ideally suited to larger organizations and those expanding into Montenegro in the long-term.
If you don’t have an entity
For organizations that have not established an entity in Montenegro, we provide full support to help set up, manage payroll, and hire your local workforce. Through our Montenegrin subsidiary, you can recruit and pay your employees, giving you greater flexibility a scalable, low-risk route into the Montenegrin market.
Build your business in Montenegro with help from New Horizons
Montenegro payroll guide
What withholdings and taxes are required in Montenegro?
Both employers and employees in Montenegro must pay a portion of salaries toward social security. For health insurance, pension, and disability funds, employers and employees contribute different percentages. For unemployment coverage, employers and employers both pay 0.5%.
The income tax rate in Montenegro is 9%.
Entitlements and terminations
Employees in Montenegro are generally entitled to one month of notice prior to termination. They are also usually entitled to severance of one-third of monthly pay for every year of service with an employer.
How to establish a Montenegro payroll
If you want to hire and set up payroll in Montenegro, we recommend establishing a Montenegrin entity first. However, tackling this independently can be complicated, possibly leading to delays and impacting your profits.
Alternatively, you can outsource everything to New Horizons. Our Montenegro experts can take care of the entire payroll process for you, from setup to management, HR, and hiring, whether or not your business has an entity in Montenegro.
Your all-in-one solution for payroll outsourcing and global expansion
New Horizons’ Montenegro PEO and employer of record services enable your business to quickly and compliantly begin trading in Montenegro. This allows your business to commence operations in Montenegro in as little as 48 hours and could cut your expansion costs by more than 80%, whether or not you already have an established entity in the country.
Additionally, our experts can manage your company’s Montenegro payroll, benefits, and expenses, along with any compliance and HR work. As the only global PEO with an in-house recruitment team, our dedicated staff can also find, hire, and onboard your local employees, saving you time and fast-tracking your expansion progress