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Payroll 2022 — the Europe Now Programme (Minimum Wage €450)

The Europe Now programme introduced a minimum wage of €450 from 1 January 2022. Relief on health contributions, progressive rates, penalties for non-compliance, downloadable Excel sheet.

FP Finance Plus 19 January 2022

The Europe Now programme stipulates that the minimum wage in Montenegro from 1 January 2022 is €450.

The Europe Now programme in Montenegro’s economic policy

The programme is part of Montenegro’s economic policy aimed at achieving smart, sustainable and inclusive economic growth — with the goal of improving the quality of life of all citizens.

Accordingly, the January wage must be paid in line with the law. Penalties are prescribed for paying wages in a manner contrary to the law.

Penalties under the Labour Act

Under Article 208 of the penalty provisions, a legal entity shall be fined with a fine of €2,000 to €20,000 if it:

  • (14) Fails to pay the employee’s wage once a month (Article 105, paragraph 1)
  • (15) When paying the wage — or if it was unable to pay the wage and the wage allowance, or was unable to pay them in full — fails to deliver a wage statement to the employee (Article 105, paragraphs 2 and 3)
  • (15a) In the event of a reduction or abolition of the personal income tax rate — or of the social security contributions borne by the employee — fails to pay out to the employee, as part of the wage, the amount of funds that would have been calculated, withheld and paid under that tax (in the part being reduced or abolished) in accordance with the law (Article 105, paragraph 4)

Changes in the calculation — health-contribution relief

Unlike previous minimum-wage increases, this time changes were also adopted in the actual payroll calculation:

  • The wage is relieved of the obligation to pay health-insurance contributions
  • Different rates depending on wage level are introduced

”Payroll 2022” Excel sheet

If you want to try it out — you can download the “Payroll 2022” Excel sheet at this link.

Overview of the payroll calculation — values in the sheet cannot be changed.


Do you need a consultation on payroll under the Europe Now programme? Contact Finance Plus.

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