From October 2024, important changes in salary calculation through the “Europe Now 2” programme come into force in Montenegro. These changes directly affect the minimum wage and contributions — here is what every employer should know.
Minimum wage in Montenegro for 2024
Under the new laws, the minimum wage from October 2024 will be:
- EUR 600 for employees with up to level V qualification
- EUR 800 for employees in positions with level VI and higher qualifications
These changes require employers to properly align salaries according to the level of education and the complexity of job positions.
Reduction of PIO contributions
One of the key changes is the reduction of contributions for pension and disability insurance (PIO).
This reduction brings:
- Increase in net salaries for all employees
- Relief of fiscal obligations for employers
Mandatory alignment of employment contracts
Under the new Labour Act, employers are required to align employment contracts with the new legal provisions. Contracts must contain:
- The basic salary calculated on the basis of job complexity coefficients
- Years of service and other salary increases prescribed by law
Attention: failure to align contracts with the new law may result in fines ranging from EUR 2,000 to EUR 20,000.
Salary calculation via the Proventum ERP system
As support for employers, Finance Plus and the Proventum ERP application offer automated solutions for salary calculation.
Our salary calculator enables:
- A simple calculation of gross and net salary
- Calculation of contributions and taxes according to applicable laws
- Automatic alignment with legal changes
Job systematisation system
Will all employees automatically receive the minimum wage increase? The answer depends on how your company has systematised job positions.
The systematisation act defines:
- Which qualification is required for a particular position
- What responsibilities the job position carries
- Positioning in the salary system
Proper systematisation enables employers to align with legal provisions and set salaries in line with the real needs and responsibilities of employees.
Fines and sanctions for non-compliance
Non-compliance with the new rules may result in serious fines:
- Fines from EUR 2,000 to EUR 20,000 for legal entities for failing to pay salaries in accordance with the Labour Act
- Inspection supervision and other sanctions in case of irregularities in the calculation of salaries and contributions
Align yourself with Finance Plus and Proventum
Finance Plus, in cooperation with the Proventum ERP application, offers complete support for aligning business operations with legal regulations:
- Generating and updating employment contracts in accordance with the Labour Act
- Automation of salary calculation and transparent calculation methods
- Recording fiscal obligations and automated payment of salaries
- Precise setting of salaries according to your needs
Use Proventum ERP and avoid the risk of financial penalties.
Conclusion
With the support of Finance Plus and Proventum ERP, your company can easily overcome the changes in salary calculation for 2024 — and be fully aligned with the new legal regulations.
Contact Finance Plus for consultations on the application of the “Europe Now 2” programme in your company.
