If you’re considering expanding to Montenegro, one of the first things you need to focus on is setting up your Montenegro payroll. You have several options to choose from, and you need to learn the country’s tax codes, labor laws, and more to stay compliant. G-P makes the entire process easier with Montenegro payroll expertise and guidance. We’ll add your employees to our payroll and manage the risk of compliance on your behalf.
Taxation rules in Montenegro
Both employers and employees must make contributions to Montenegro’s social security plan. Rates vary by each portion of the plan, including:
- Pension and disability: Employers pay 5.5%, employees pay 15%
- Health insurance: Employers pay 2.3%, employees pay 8.5%
- Unemployment insurance: Employers pay 0.5%, employees pay 0.5%
Montenegro payroll options for companies
Every company that expands to Montenegro has 3 different payroll options:
- Internal: An internal payroll team is one Montenegro payroll option for larger companies looking to work in the country long term. However, you should make sure you have a dedicated HR team with compliance expertise to ensure success.
- Local outsourcing company: A Montenegro payroll outsourcing company will help you set up and manage your payroll. However, your company will still need to worry about meeting payroll laws.
- Employer of Record (EOR): A best-in-class EOR like G-P backs its platform with an expert team of HR and legal experts to ensure your payroll setup and management is compliant and accurate. That means you can focus on growing your global teams.
How to set up a payroll in Montenegro
Setting up your Montenegro payroll also requires the time to establish your own subsidiary. You can’t start to run your payroll until you have a registered entity in the country, which could take up to a few months. As an EOR, G-P can help you start working faster while mitigating compliance risk. You can trust us to add your employees to our locally compliant payroll as well as hire employees for your team, streamline competitive compensation and benefits administration, and more.
Entitlement/termination terms
One of the trickier aspects of employment is termination. That’s why it’s best practice to add entitlement and termination terms to your employment contract before choosing a Montenegro payroll option and adding employees. Montenegro allows for probationary periods of up to 6 months. Afterwards, employees can be terminated for just cause, but you must give them at least 30 days of written notice. Usually, employees get severance pay of at least ⅓ of their monthly pay over the last 6 months for each year they’ve worked.
Streamline global payroll management with G-P.
G-P streamlines each step of the payroll management process with our market-leading global employment platform. Pay your team with confidence anywhere in the world in 150 currencies with our 99% on-time automated payroll system — all with just a few clicks. Our products also integrate with leading HCM solutions, syncing employee payroll data across platforms automatically to create one reliable, convenient source of truth for HR teams.
Contact us to learn more about how we can support you.