Social Security Contributions — Montenegro
Montenegro's social security system was significantly reformed in October 2024. Employee contributions were reduced from 24% to 10.5%, health contributions were abolished and employers now pay only 0.5% unemployment insurance, making Montenegro one of the most attractive jurisdictions in Europe.
Social Security Contributions
Montenegro's social security system was significantly reformed in October 2024. Employee contributions were reduced from 24% to 10.5%, health contributions were abolished and employers now pay only 0.5% unemployment insurance, making Montenegro one of the most attractive jurisdictions in Europe.
Employee Contributions 2024-2026
Reduced from 20.5% in October 2024. Includes pension insurance and disability insurance. Automatically withheld from gross salary.
Contribution for unemployment insurance. Total employee social contribution rate is 10.5% - among the lowest in Europe.
Pension and disability contributions are not charged on income exceeding this threshold. Set at the beginning of each year.
Employer Contributions
As of October 2024, employers no longer pay pension or health contributions; the only remaining employer social contribution is 0.5% unemployment insurance. This is a significant reduction in the tax burden on business.
Contribution to the labor fund from gross salary. Paid by the employer in addition to the 0.5% unemployment insurance.
Self-Employed Contributions
Self-employed pay both employee and employer portions (though the employer share is now only 0.5% unemployment insurance). Base rate is 10.5% of income.
If individual activity is primary source of income, contributions are paid on at least minimum wage basis (€600-800 depending on education level).
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Personal Income Tax 2026
Progressive taxation system with automatic tax-free threshold of €700 for salaries and €8,400 for entrepreneurial income. Rates from 0% to 15% make Montenegro one of the most tax-efficient countries in Europe.
03Business Taxation
Progressive corporate tax from 9% to 15% - one of the most competitive in Europe. Montenegro is working towards EU membership while maintaining a favorable tax regime to attract investment.
04VAT and Other Taxes
Montenegro's VAT system follows EU guidelines with multiple rates. Property taxes, transfer taxes, and special levies also apply.