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From October 1, 2024, changes related to minimum salary and contributions have come into effect in Montenegro. Below is an overview of the key changes and how they will work in practice.

MINIMUM SALARY UNDER THE NEW RULES

According to the new plan, employees with a high school education will not receive less than 600 euros, while the minimum salary for those with higher education will be 800 euros. This measure aims to raise the standard of living for workers and provide them with a more stable financial situation.

One of the key changes is the reduction of contributions for the Pension and Disability Insurance (PIO), which means that part of these reduced amounts will go directly to the employees' net salaries.

OVERVIEW OF SALARIES AND CONTRIBUTIONS

In the table we have prepared, you can see examples of salaries and contributions that employers will have to calculate from October 2024. These amounts include both gross earnings and contributions that employers must pay for each employee. For example:

• For a salary of 600 euros, contributions will amount to 76.89 euros, which is a total of 676.89 euros (gross II).
• For a salary of 700 euros, contributions will amount to 100.21 euros, which is a total of 800.21 euros
• For a salary of 800 euros, contributions will amount to 127.32 euros, which is a total of 927.32 euros
• For a salary of 1,000 euros, contributions will amount to 196.64 euros, which is a total of 1,196.64 euros
• For a salary of 2,000 euros, contributions will amount to 582.14 euros, which is a total of 2,582.14 euros
• For a salary of 2,500 euros, contributions will amount to 774.89 euros, which is a total of 3,274.89 euros
• For a salary of 3,000 euros, contributions will amount to 967.64 euros, which is a total of 3,967.64 euros
• For a salary of 3,500 euros, contributions will amount to 1,160.39 euros, which is a total of 4,660.39 euros
• For a salary of 4,000 euros, contributions will amount to 1,353.15 euros, which is a total of 5,353.15 euros
• For a salary of 5,000 euros, contributions will amount to 1,738.65 euros, which is a total of 6,738.65 euros  

This overview can help you get a clearer understanding of how salary calculations will look and how much contributions will be for different salary levels.

The Perfectum Agency is at your disposal for any questions regarding salary calculations, taxes, and contributions.

We are here to make your business operations easier and to ensure everything is in line with legal regulations.

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