In Montenegro, employers are legally obligated to provide a set of benefits to their employees. These benefits aim to safeguard workers and ensure their welfare.

Paid Time Off

Employees in Montenegro are entitled to various forms of paid time off:

• Annual Leave: A minimum of 20 working days of paid annual leave is granted each calendar year.
• Public Holidays: Montenegro recognizes eight national holidays, most of which are celebrated over two days. Employees are entitled to paid time off for all public holidays.
• Sick Leave: For the first 60 days of sick leave, employees receive 70% of their regular salary. After this period, benefits are provided through social security.
• Parental Leave:
  • Maternity Leave: Pregnant employees are entitled to 365 days of maternity leave, with a minimum of 98 days paid at their regular salary.
  • Paternity Leave: Paternity leave is included under parental leave. Specific details on entitlement may vary.

Other Mandatory Benefits

There are other mandatory benefits that employers must provide:

• Probationary Period: The law permits a probationary period in employment contracts, but the specific length is not mandated.
• Overtime Pay: Employees who work beyond their regular hours are entitled to receive overtime pay at a higher rate.
• Severance Pay: Under certain circumstances, employees may be entitled to severance pay. Specific requirements and amounts are determined by law.
• Social Security Contributions: Employers are required to withhold contributions from employee salaries for social security benefits.

In Montenegro, many employers go beyond the mandatory benefits to offer additional perks to attract and retain top talent. These optional employee benefits can range from healthcare to financial benefits and work-life balance benefits.

Healthcare Benefits

Employers may offer supplemental private health insurance to cover expenses not covered by the public system, such as dental, vision, or prescription drugs. Additionally, companies may offer wellness programs or incentives to promote employee well-being. This could include gym memberships, healthy food options, or stress-reduction initiatives.

Financial Benefits

Some employers provide life insurance as a benefit, offering financial security to the employee's family in case of death. Additionally, employers may offer private pension plans to supplement retirement income.

Work-Life Balance Benefits

Offering flexible work hours, remote work options, or compressed workweeks can improve employee work-life balance. Some companies may offer additional paid time off beyond the mandatory minimum, such as paid vacation days or personal leave days. Employers may also offer childcare subsidies or on-site childcare facilities to help employees manage work-life demands.

The specific optional benefits offered by employers in Montenegro can vary depending on the company size, industry, and overall compensation strategy.

In Montenegro, as of January 1st, 2022, mandatory health insurance contributions for both employers and employees have been abolished. This implies that there are no longer set contribution rates deducted from employee salaries or employer payments for public health insurance. Prior to this, health insurance contributions were part of the social security system, with employees contributing 8.5% and employers contributing 2.3%.

Current Situation

At present, employees in Montenegro are not legally required to have health insurance. However, they still have options to obtain health coverage:

• Private health insurance: Employees can opt to purchase private health insurance plans from local insurance companies.
• Self-payment: Montenegrin citizens can access some public healthcare services by paying for them directly.

Employer-provided health insurance

Although not compulsory, employers in Montenegro may still choose to offer health insurance as a voluntary benefit to their employees. This can serve as a strategy to attract and retain talent.

In Montenegro, retirement plans for employees primarily consist of two main pillars: the State Pension Scheme and Voluntary Private Pension Plans.

State Pension Scheme

Montenegro operates a mandatory, pay-as-you-go state pension scheme. This system provides basic income security for retirees after they reach the legal retirement age. Both employees and employers contribute a set percentage of the employee's salary towards this scheme.

• Employer Contributions: Employers contribute 5.5% of the employee's salary towards pension and disability insurance.
• Employee Contributions: A portion of the employee's gross salary also goes towards the scheme, though the exact amount may vary.
• Eligibility: To be eligible for a state pension, employees must reach the legal retirement age and have contributed for a minimum number of years, typically 15 years.
• Retirement Age: The legal retirement age in Montenegro varies slightly between genders and is subject to change. In 2023, it was 66 years and eight months for men and 62 years and six months for women.

Voluntary Private Pension Plans

The state pension scheme provides a foundation, but it may not be enough to fully support your desired retirement lifestyle. Voluntary private pension plans are an option for employees who want to save additional funds for retirement.

Unfortunately, there is limited publicly available information on the specific types of voluntary private pension plans offered in Montenegro. It's possible that some employers may offer such plans as part of their employee benefit package, so it's best to consult with your employer directly to see what options they provide.

By exploring both the state pension scheme and potential voluntary private plans, employees in Montenegro can create a more comprehensive retirement savings strategy.