Montenegro’s Euro model will set employers’ tax and contribution bill on a net wage of 1,250 euros at about 62 euros, down from almost 800 euros in 2021, State Secretary at the Ministry of Finance Tarik Turković said. The 62-euro obligation applies to a legally declared salary.
The employer’s total cost for that wage will be about 1,312 euros, with 95.2% of the total going directly to the employee’s bank account, according to the figures Turković presented.
Turković linked the earlier high burden on labour to employers moving into the informal economy. He said some paid part of wages off the books, registered workers at the minimum wage or avoided obligations that many employers could not financially sustain under the tax policy.
He described the period since the start of the Europe Now programme as a “win-win” situation for employers and the state. In his account, the model has supported higher wages and employment, more legally declared work and more stable public finances by reducing the grey economy.
Turković characterised the approach as “less burden on labour, more money for employees and conditions for sustainable economic growth”.
