Expand your organization into Montenegro, with or without a Montenegrin entity
Montenegro’s economy has gone through a period of turbulence throughout the late 20th and early 21st Century, but it has stabilized significantly and is now recognized as an area of great potential by many foreign businesses.
If your organization is contemplating a move to Montenegro, it is important to understand that progress can be slow in the country. The differences in language, culture, and business practices can all contribute to significant delays, so you should be prepared for your expansion to take weeks or even months to truly get underway.
At New Horizons, we help organizations of all kinds to expand abroad, including into Montenegro. Our professional employer organization (PEO), employer of record, and payroll services can provide your organization with everything you need to begin your Montenegrin expansion in a matter of just days, not the weeks or months it could otherwise take, even if you don’t have an established entity in the country.
We have an in-house recruitment team, so we can source, recruit, and onboard your new staff members. Additionally, you can use our Montenegrin subsidiary to act as employer of record for your new hires, so you don’t even need to register an entity in the country but will have total autonomy over your employees. Our outsourcing solutions could save you thousands in expansion costs, and can help you expand in a compliant, flexible, and scalable way.
Our Montenegro PEO simplifies your expansion
New Horizons enables your business to expand operations into Montenegro- without setting up a legal subsidiary.
Hiring in Montenegro: Employment law overview
Employment contracts in Montenegro
It is legally required to have written contracts of employment in place when hiring in Montenegro. These contracts should always include relevant details of the employment agreement such as salary, benefits, terminations terms, and more. They should also generally be written in the country’s official language of Montenegrin, although the languages of Bosnian, Croatian, Serbian and Albanian are also common. Any references to money should be in euros.
Working hours in Montenegro
The standard working week for employees in Montenegro is 40 hours spread across five days.
Public holidays in Montenegro
There are multiple public holidays celebrated annually in Montenegro. The following holidays are given as holiday by many employers, and some span several days:
- New Year’s Day
- Orthodox Christmas Eve
- Orthodox Christmas
- Orthodox Good Friday
- May Day
- Orthodox Easter Monday
- Independence Day
- Statehood Day
Montenegro vacation leave
Employees in Montenegro are usually entitled to 21 days of paid vacation leave every year. Additionally, employees can take up to seven days of leave for certain personal reasons such as weddings or the death of a loved one.
Montenegro sick leave
Employees in Montenegro are entitled to up to five paid sick days per year.
Parental leave in Montenegro
Female employees in Montenegro can take up to one full year of paid maternity leave, starting from between 28 and 45 days before giving birth. Fathers can use any of the mother’s unused leave as paternity leave.
In addition to the standard parental leave, parents can take unpaid leave until their child is three years old.
Terminations and severance in Montenegro
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.
Taxation 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%.
Income tax in Montenegro is 9%. Corporate tax is also 9%.
Health coverage in Montenegro
Montenegro has a government-funded healthcare system with compulsory health insurance payments from both employers and employees. Some employers also choose to provide private medical insurance as part of their benefits packages.
Montenegro compensations & benefits
Compensation laws in Montenegro
The minimum wage in Montenegro is €220 per month (valid in 2020).
Benefit management in Montenegro
Many employees in Montenegro choose to offer their employees benefits packages, including things such as extra pension contributions, a company car allowance, paid vacation days, a holiday bonus, and so on. However, setting up a benefits system in Montenegro can be difficult if you are not familiar with the country’s complicated labor laws, language, and administrative norms.
Outsourcing your benefit management process ensures that you fully understand and adhere to the rules, ensuring your compliance and speeding up the process significantly. At New Horizons, our Montenegro employment experts will help you to find and arrange your benefits, advise on your strategy, and ensure compliance with the law.
New Horizons will help you expand your business into Montenegro faster
At New Horizons, we specialize in providing tailored employer of record, PEO, and payroll outsourcing services to give businesses everything they need to begin trading in Montenegro as efficiently as possible. Our experts will ensure that you are ready to start trading and hiring in Montenegro in as little as 48 hours, and could save you up to 82% in expansion costs, even if you haven’t already registered a legal entity in the country.
New Horizons can manage your company’s payroll, benefits, and expenses in Montenegro. Additionally, we can oversee HR duties, as well as employment and tax compliance. And as the only global PEO with an in-house recruitment team, New Horizons will source, hire, and onboard your local workforce.
Contact us today to discover how our Montenegro-specific services can support your expansion.