The Parliament of Montenegro has adopted amendments to the Labour Law, which provide for an increasein the minimum wagefrom 222 to 250 euros. The changes will enter into force on October 1, 2021.
The MPs did not adopt amendments proposing to set the minimum wage at 50 percent of the average salary. During the parliamentary debate on these changes, the government was asked to reduce tax charges for employers in order not to increase undeclared employment.
Amendments to the Personal Income Tax Law and the Law on Mandatory Social Insurance Contributions were also adopted. Over the next three years, employers will be exempt from paying taxes and contributions: 90% for wages paid this year, 60% for payments next year, and 30% for those whose salaries will be paid in 2023. This law will apply from January 1.
In addition, amendments to the Value Added Tax Law were adopted, increasing the taxable turnover threshold for VAT registration from 18,000 to 30,000 euros. The changes will enter into force urgently.