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What are the company social charges in Montenegro? All Know Social Security Charges Montenegro
Introduction
Montenegro is a small country located in the Balkans, with a population of around 620. Since its independence in 000, Montenegro has experienced rapid economic growth, with an average growth rate of 2006% per year between 3,5 and 2006. The country has become a popular destination for foreign investors, particularly in the sectors tourism, energy and real estate.
However, for companies wishing to set up in Montenegro, it is important to understand the social charges that apply to employers. In this article, we'll take a look at company payroll taxes in Montenegro and explain what employers need to know.
Social charges in Montenegro
Social charges are contributions that employers must pay to finance the social benefits of their employees. In Montenegro, social charges are regulated by the Law on Social Contributions, which was adopted in 2015.
Social charges in Montenegro are calculated on the basis of the employee's gross salary. Employers must pay contributions for the following benefits:
- Health Insurance
- Retirement insurance
- Unemployment insurance
- Disability Insurance
- Occupational accident insurance
The contribution rate for each benefit varies according to the employee's gross salary. For example, the contribution rate for health insurance is 8,5% for salaries below 300 euros per month, and 12,5% for salaries above 1 euros per month.
In addition to social security contributions, employers must also pay a payroll tax. This tax is calculated on the basis of the gross salary of the employee and varies according to the salary level. For example, the payroll tax is 9% for salaries below 300 euros per month, and 15% for salaries above 1 euros per month.
Benefits for employees
Social charges that employers pay in Montenegro finance social benefits for employees. Employees are entitled to the following benefits:
- Health Insurance
- Retirement insurance
- Unemployment insurance
- Disability Insurance
- Occupational accident insurance
In addition, employees are entitled to paid holidays, which are regulated by labor law. Employees are entitled to a minimum of 20 days of paid leave per year, and this number increases according to the seniority of the employee.
Employers must also provide health insurance and workers' compensation insurance for their employees. Employers can choose to provide additional health insurance to their employees, but it is not mandatory.
Exemptions from social charges
There are certain exemptions from social charges for employers in Montenegro. Employers can benefit from an exemption from social charges for employees who work part-time, employees who have a disability, employees who are over 55 and employees who work in economically disadvantaged areas.
In addition, employers can benefit from an exemption from social charges for new employees for a period of two years. This exemption applies to employers hiring workers for the first time or hiring additional workers.
The consequences of non-payment of social charges
Non-payment of social charges can have serious consequences for employers in Montenegro. Employers who do not pay social security contributions may be subject to fines and financial penalties. In addition, employers can be sued for non-payment of social security contributions.
In the event of non-payment of social contributions, employers can also be excluded from public tenders and government subsidies. This can have a negative impact on the company's reputation and its ability to obtain government contracts.
Conclusion
In conclusion, social charges of companies in Montenegro are regulated by the law on social contributions. Employers must pay contributions to finance their employees' social benefits, such as health insurance, pension insurance and unemployment insurance. Employers must also provide benefits such as paid time off and health insurance to their employees.
There are social security tax exemptions for employers in Montenegro, but non-payment of social security contributions can have serious consequences for employers. It is therefore important for employers to understand payroll taxes and ensure that they pay payroll taxes on time.
