Social Contributions in Montenegro
https://eporezi.me/en/vodici/socijalni-doprinosi
Social contributions calculation in Montenegro after the October 2024 reform. Pension 10%, unemployment 0.5%, health contribution abolished.
Key facts
- Contributions: 10.5 % from the employee, about 0.7 % from the employer.
- Paid the same day as the salary; IOPPD is filed by the 15th of the month.
- The health contribution was abolished (Jan. 2022) — pension and unemployment remain.
- The Oct. 2024 reform cut the employer's share from ~9.6 % to ~0.7 %.
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.
The following are calculated on the gross salary: pension and disability insurance (PIO) 10% and unemployment contribution 0.5%. Total 10.5% at the employee's expense. Health contribution was abolished in January 2022.
Oct. 2024 reform: the total percentage remains 10.5%, but the structure changed (previously: PIO 5.5% + health 4.5% + unemployment 0.5%).
The employer additionally pays: unemployment 0.5% and Labour Fund 0.2%, totalling about 0.7% of the gross salary. This is a drastic reduction from the previous ~9.6%.
Contributions are paid at the same time as the employee's salary. Payments are made to fund accounts according to Tax Administration instructions.
The IOPPD return contains data on all salaries paid and contributions calculated for each employee. It is submitted electronically to the Tax Administration.
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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