Social Contributions in Montenegro
Social contributions calculation in Montenegro after the October 2024 reform. Pension 10%, unemployment 0.5%, health contribution abolished.
Procedure
Gross salary is the basis for calculating contributions. The minimum base is 50% of the average gross salary in Montenegro. The maximum base is unlimited.
Calculator
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Contribution rates (2026, after Oct. 2024 reform)
| Type | Employee | Employer | Total |
|---|---|---|---|
| Pension and disability (PIO) | 10% | — | 10% |
| Health | 0% (abolished) | 0% (abolished) | 0% |
| Unemployment | 0.5% | 0.5% | 1.0% |
| Labour Fund | — | 0.2% | 0.2% |
| Total | 10.5% | ~0.7% | ~11.2% |
Additional notes
Key change from the Oct. 2024 reform: employer contributions reduced from ~9.6% to ~0.7%, significantly lowering the tax burden on labour.
New from 1 Jan 2026 (Sl. list CG 160/25): a new obligor category — "dopunska preduzetnička djelatnost" (supplementary entrepreneurial activity for people who are already employed elsewhere but also run a side business). The contribution base is tiered by annual turnover: up to €9,000 → 60% of the national average monthly wage; up to €15,000 → 100%; over €15,000 → 150% (with an option to elect a higher base).
Required Documents
- IOPPD form (monthly contributions return)
- Employment contract
- Salary payment records
Legal Basis
- Law on Mandatory Social Insurance Contributions (Zakon o doprinosima za obavezno socijalno osiguranje)
- Law on Pension and Disability Insurance (Zakon o penzijskom i invalidskom osiguranju)
- Law on Employment (Zakon o zapošljavanju)
Competent Institutions
- Tax Administration of Montenegro
Calculation and collection of contributions
- PIO Fund
Pension and disability insurance
- eUprava
Electronic IOPPD filing
Related guides
Salary Calculation & IOPPD in Montenegro
Gross-to-net with pension 10%, no health ins., surtax, IOPPD filing
Income Tax in Montenegro
Rates 0/9/15% + municipal surtax 10-15%, €700 deduction, 10.5% contributions
Employee Registration with Tax Authority
Registering employees, IOPPD form, social insurance, Pension Fund