Employer of Record in Montenegro | Hire Worlwide Talent

Country Guide

Employer of Record in Montenegro

Last updated: May 27, 2025

Capital City

Canberra

Languages

English

Currency

Australian dollar ($, AUD)

Population Size

25,771,300

Employer Taxes

18.45%

Employee Costs

2%

Payroll Frequency

Monthly

Back to All Countries

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Expanding to Montenegro? EOR Services Help You Hire Globally, Pay Locally, and Expand Effortlessly

Looking to grow your business internationally? INS Global is your go-to partner for seamless global expansion. By partnering with our trusted Employer of Record (EOR) in Montenegro, you can hire and manage top local talent without the hassle of setting up a legal entity. Say goodbye to the complexities and costs of international growth – we’ve got it handled.

Our EOR solutions handle HR, payroll, and compliance in over 100 countries, so you can focus on scaling your business.

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Why Choose an EOR in Montenegro Over Company Incorporation?

Establishing a new company doesn’t just take time, it can drastically increase your overheads and keep your employees from other tasks. Working with an EOR in Montenegro streamlines the entire process and allows you to launch in a new market at a fraction of the cost, and in days rather than weeks or months.

Working with a Montenegrin EOR…

  • Saves time
  • Reduces expansion costs
  • Ensures legal compliance
  • Allows you to focus on growth

PEO/EOR vs Company Incorporation

The Advantage in Figures

PEO/EOR

Company Incorporation

Price

80% Less Expensive

Market Entry

2-5 Days

6 Months

Employee Turnover
Decrease by 14%
Recommendation
98% of the Current PEO Clients
Administrative Fees
Saves an Average of $450
Costly Payroll and Compliance Fines
Help Avoid
Company Growth Rate
7 – 9%
ROI
27%
Closed During Pandemic
-58%
employer of record

The Advantages of Using a Professional Employer Organization in Montenegro

icon EOR

Legal Compliance

EORs in Montenegro have local experience and can help you find and manage talent internationally while abiding by complex labor laws. This provides you with top talent while ensuring that everything is in line with the latest regulations.

icon EOR

Lower Expansion Costs

Working with a local Employer of Record allows you to expand internationally at a fraction of the cost. Since you don‘t have to worry about setting up a new company in that market, you can focus on building your business while reducing overheads.

icon EOR

Focus on Growing Your Business

EORs take all the HR-related responsibilities off your shoulders so that you can focus on what really matters: your business. Partnering with a local Employer of Record in Montenegro empowers your business and staff to stay focused on your goals while we handle all the HR for you.

icon EOR

Expand Effortlessly

Going through the process to set up a new company abroad, the process could take anywhere from 4 to 12 months. On the other hand, working with a local EOR in Montenegro streamlines the process and can have you up and running in days.

icon EOR

Manage Your HR Online

INS Global offers you a way to manage your diverse workforce seamlessly online. With a modern, cloud-based HR platform, you can keep your finger on the pulse from any country in the world.

How Does an EOR In Montenegro Work?

INS Global’s EOR in Montenegro allows your company to expand internationally in 4 simple steps.

1

We work with your business to create a strategic plan that meets all your needs.

2

Our organization provides a legal entity to help recruit and manage staff in Montenegro.

3

We handle HR-related tasks such as recruitment, contracts, and payroll processing to ensure legal compliance.

4

Your employees focus on your goals while we take care of HR and legal compliance.

The Differences Between PEOs and Employer Of Record

When considering a partnership with a PEO in Montenegro, you will likely also hear the term EOR (Employer of Record). Typically, the two terms are largely interchangeable based on the kind of services they offer. The main difference between the two is the level of liability taken on by the PEO/EOR and the parties involved in the agreement.  

  • A PEO provides all HR services to employees on behalf of other companies 
  • A PEO agreement is made between the PEO and the original company to share the responsibilities for the employee 
  • An EOR in Montenegro legally hires the employee on behalf of the original company and provides all HR services 
  • An EOR agreement is made between the EOR and the employee on behalf of the original company 

In Montenegro both services are indistinct according to national regulations, but INS Global can offer any elements of both according to your requirements 

INS GUIDES

Check Our Labor Law Guide

Learn how the Labor Law Guide is applied in all aspects and situations, from an employer and employee perspective.
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Labor Law in Montenegro

Employment Contracts in Montenegro

In Montenegro, employment is typically formalized through a written offer of employment. Employers may include a probation period in the contract, but this period must not exceed six months. During or after the probation period, employers are allowed to terminate the employee without paying severance.

The employment contract should clearly specify the nature of the job and include a brief description of the employee’s responsibilities. Employers have the right to terminate the contract early if the employee violates any of its terms.

Employees who have been with the company for less than two years typically receive one week’s notice upon termination. For employees with longer service, the notice period generally increases to one week for every year of employment.

Regarding severance, eligible employees are entitled to one week’s pay for each year they have worked for the company, with a legal minimum of three months’ pay.

Working Hours in Montenegro

  • The working week in Montenegro starts on Monday and ends on Friday.
  • Full-time employees work 8 hours per day, 40 hours per week.
  • Part-time employees work around 20 hours per week and can’t work more than 40 hours.
  • Employees are entitled to a higher hourly rate for overtime. This is generally 140% of the normal hourly rate.

Types Of Leave

Annual Leave in Montenegro

  • Montenegro has 13 official national public holidays.
  • Employees are entitled to a minimum of 20 calendar days of paid time off per year.
  • Employees may be entitled to additional time off according to their employment contract.
  • The scheduling of time off is subject to the employer and the staffing needs of the business

Sick Leave in Montenegro

  • Montenegrin labor law allows employees to up to 60 days of sick leave.
  • Employees should notify their employers before the working day starts and provide a medical certificate as proof of illness.
  • Employers are required to pay 70% of the employee’s standard salary during the 60 days of sick leave.
  • If an employee is sick for longer than 60 days (about 2 months), they will receive 70% of their salary from the Health Fund.

Maternity / Paternity Leave in Montenegro

  • According to Montenegrin labor law, female employees are entitled to 98 days of maternity leave, 28 days before the birth of the child and 70 days after.
  • Employees must notify their employer 1 month before taking maternity leave.
  • Before maternity leave, female employees may receive 1 day off per month for prenatal checkups and doctor visits.
  • If a doctor advises that an employee’s work puts the baby in danger, they are entitled to paid time off during which they receive a full salary.
  • The parents of the child share parental leave until the child is 1 year old. The employer must be notified in writing 30 days prior to parental leave.
  • One parent can transfer the remaining days of leave to the other parent. However, they have no further right to parental leave after this.
  • Parents are entitled to 1 year of leave after the adoption of a child under the age of 8. Parents will get a reduced salary during this time.

Tax Laws in Montenegro

  • Employers in Montenegro are responsible for withholding all taxes and social contributions.
  • The total social security contributions can vary from region to region in Montenegro.
  • Generally, employers pay 5.5% towards employee pensions and disability insurance and 0.5% towards unemployment insurance.
  • Employees contribute 15% towards pension and disability insurance and 0.5% toward unemployment insurance.
  • Montenegrin employees are subject to personal income tax that ranges from 9% to 15%. The monthly tax rate for the first EUR 700 employees earn is 0%. The rate rises to 9% for income between EUR 701 to EUR 1,000. Income earned over EUR 1,000 monthly is taxed at 15%.
  • All employees are required to file their own tax returns each year.
  • The corporate income tax rate in Montenegro ranges from 9% to 15%. The rate is 9% for profits up to EUR 100,000. The rate increased to 12% for profits between EUR 100,000 and EUR 1,500,000. Profits above EUR 1,500,000 are taxed at 15%.

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Discover More Solutions in Montenegro

Employer of Record (EOR) in Australia

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Employer of Record (EOR) in Australia

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Frequently Asked Questions

faqs

No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.

PEO services streamline your expansion plan, with the costs typically being based on your employee’s salary.

Certainly, working with an Employer of Record in Montenegro is a legal and efficient solution that streamlines your expansion plans while reducing costs.

Salaries are typically processed on a monthly basis for full-time employees, while part-time workers may prefer weekly or bi-monthly payments. Employers are responsible for deducting taxes and social contributions.

INS Global simplifies and streamlines recruitment, hiring, and staff management remotely, reducing the costs associated with managing an international workforce. That being said, when employing workers in Montenegro it’s essential to consider both direct and indirect costs, such as mandatory and fringe employee benefits, and relocation costs in the case of foreign employees.

Absolutely, an Employer of Record in Montenegro can recruit and hire employees from all regions, expanding your talent pool wherever the opportunity arises.

Modifications to employment contracts in Montenegro require mutual agreement.

Yes, employers in Montenegro are responsible for deducting taxes and social contributions from employee salaries.

INS Global tailors its services to your specific needs, assisting you in recruiting and hiring as many employees as necessary for your expansion plans. 

Termination costs vary depending on the circumstances. Employees are generally entitled to at least a third of their salary for each year of employment with a minimum equivalent to 3 months pay.

In Montenegro, you can hire employees for in-person and remote opportunities, ensuring cost efficiency during market entry.

Certainly! Our recruitment experts possess extensive experience in hiring top talent globally. We provide comprehensive support in recruiting, hiring, and managing your local workforce, regardless of your location.

Montenegro observes 13 national holidays, and most employees are entitled to a paid day off on each of them. Working on these holidays usually involves a higher hourly rate.

Employers must adhere to strict labor laws and regulations to avoid penalties and fines. Collaborating with an experienced PEO in Montenegro ensures compliance during seamless expansion.

Absolutely! INS Global facilitates the recruitment and management of a diverse workforce remotely, making it simple to hire both Montenegrin citizens and foreigners.

Smiling woman representing the simplicity and efficiency of a Global Employer of Record for international hiring

A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.

This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each  country.

Public Holidays Calendar

Date
Day
Holiday
1 Jan 2025
Wednesday
New Year's Day
27 Jan 2025
Monday
Australia Day
18 Apr 2025
Friday
Good Friday
19 Apr 2025
Saturday
Easter Saturday
20 Apr 2025
Sunday
Easter Sunday
21 Apr 2025
Monday
Easter Monday
25 Apr 2025
Friday
ANZAC Day
5 May 2025
Monday
Labour Day
9 Jun 2025
Monday
King's Birthday
13 Aug 2025
Wednesday
Royal Queensland Show
6 Oct 2025
Monday
King's Birthday
24 Dec 2025
Wednesday
Christmas Eve
25 Dec 2025
Thursday
Christmas Day
26 Dec 2025
Friday
Boxing Day

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