Montenegro Tax Changes 2027: What the Euro Model Would Change
The government's plan would scrap employee contributions, cut salary tax to 0% / 9% and lift net minimum wages to €1,000–1,400. It is an announcement, not a law: here is the plan next to the rules in force today.
Main proposal
Announced for January 2027, not law
Rules in force (2026) vs the announced plan (2027)
| Parameter | 2026 (law) | 2027 (plan) | Status |
|---|---|---|---|
| Salary tax, monthly gross | 0% to €700; 9% €700–1,000; 15% above €1,000 | 0% to €700; 9% above €700 | Announced |
| Municipal surtax on salary tax | 13% (15% Podgorica, Cetinje) | No change reported | — |
| Employee pension contribution (PIO) | 10% | 0% | Announced |
| Employee unemployment contribution | 0.5% | 0% | Announced |
| Employer contributions | 0.5% unemployment plus small levies | No change reported | — |
| Net minimum wage | €600 (up to secondary education) / €800 (higher) | €1,000 / €1,250 / €1,400 (basic / secondary / higher) | Announced; employers propose €800 / €1,000 |
2026 values: PwC (reviewed August 2026) and the Parliamentary Budget Office's 2026 budget guide. 2027 values: the PM's announcement and media reports on the draft package.
Take-home pay: 2026 law vs the plan (Podgorica)
| Gross / month | Net 2026 | Net 2027 (plan) | Difference |
|---|---|---|---|
| €1,000 | €863.95 | €968.95 | +€105.00 |
| €1,500 | €1,225.20 | €1,417.20 | +€192.00 |
| €2,000 | €1,586.45 | €1,865.45 | +€279.00 |
Illustration of the announced rates, not law. Single employee in Podgorica (15% surtax), no children, same gross in both years. 2026: 10.5% contributions, tax 0/9/15%. Plan: no employee contributions, 9% above €700. Assumes the surtax stays, which the plan has not confirmed.
What the plan would mean for employees
Lower tax, no contributions
The gain grows with salary, because both the 15% band and the 10.5% contributions would go. The PM's own example: a worker netting €1,600 today at an employer cost of €1,980 would net €1,870 at the same cost.
Much higher minimum wages
The lowest tier would rise from €600 to €1,000 net. Workers with secondary education would go from €600 to €1,250, those with higher education from €800 to €1,400.
The employers' union UPCG warns of a cost shock and proposes €800 / €1,000 from 1 January 2027, with a 12-month transition and state subsidies.
Talks between the government and employers are expected to run through October–December 2026.
Entrepreneurs, companies and relocants
Open questions for the self-employed
Reports so far cover salary tax only. It is not confirmed whether the 0% / 9% schedule would also apply to entrepreneurs' income.
Expats and relocants
Employees of Montenegrin companies would gain the most.
The contribution exemption for digital nomads: no change reported.
Higher minimum wages may affect work-permit and residence checks tied to salary levels. Recheck once the law is adopted.
Why the numbers may still change
FAQ
Is the Euro model already law in Montenegro?
No. The PM announced it on 17 September 2026 for January 2027, but no bill had been filed in parliament as of 15 October 2026. The 2026 rules still apply.
What would salary tax be under the Euro model?
0% on monthly gross up to €700 and 9% above, with no 15% band and no employee contributions. Today it is 0% / 9% / 15% plus 10.5% contributions.
What would the minimum wage be in Montenegro in 2027?
The government announced €1,000, €1,250 and €1,400 net by education level, up from €600 / €800. Employers propose €800 / €1,000. Nothing is final.
When will the final 2027 rules be known?
When the government adopts the bills and files them in parliament, expected in late October–November 2026. The 2027 budget is usually adopted in December.
Sources
Keep reading
Montenegro salary tax calculator
Gross to net under the 2026 rules.
Salaries in Montenegro
Average and minimum wage with take-home pay.
Georgia vs Cyprus vs Montenegro vs Armenia
Taxes for IT relocants compared.
Cost of hiring in Montenegro
Employer contributions and total cost.
Tax changes 2027 by country
What changes next year across 50 countries.
