Pravne novosti
Montenegro's Government has proposed a major change to salaries from January 2027.
28. sept 2026.
September 2026, Montenegro announced the Euro Model: proposed minimum net salaries of EUR 1,000 for positions requiring primary or lower education, EUR 1,250 for secondary education and EUR 1,400 for higher education. The Government intends the model to apply from January 2027. Government announcement of the Euro Model
The Euro Model is proposed but not yet enacted
The Government approved proposed amendments covering labour law, personal income tax, social-insurance contributions, pensions and local-government financing. (Government decisions of 17 September 2026). The draft Labour Law also seeks to prevent employers from lowering education requirements or changing job descriptions to place existing staff in a cheaper category.
The Government says more than 250,000 employees would receive an increase and that lower labour taxation, stronger consumption and employment, action against the informal economy and fiscal measures would support the model.
These are proposals. They require parliamentary adoption and publication before becoming binding law, and the final package may change. Companies should prepare scenarios now, but should not alter payroll solely because of the announcement.
The labour market explains why the proposal matters
Few facts; MONSTAT recorded 287,100 employed people in the second quarter of 2026, up 4.2% year on year. Unemployment fell to 9.1%, or 28,800 people. Yet 61.9% of unemployed people had been looking for work for at least two years. (MONSTAT Labour Force Survey Q2 2026)
Montenegro therefore has both job growth and persistent long-term unemployment. At the same time, employers continue to depend on foreign workers. This points to mismatches in skills, location and seasonality. Higher salaries may improve retention and attract some citizens back from abroad, but they will not by themselves create the technicians, specialists and seasonal workers businesses need.
Regional migration and business relocation risks
The proposal could change labour mobility in both directions. Higher Montenegrin wages may attract workers from nearby countries and help fill shortages in tourism, construction and services. Local workers, especially younger and lower-skilled applicants, could nevertheless face stronger competition for entry-level jobs. This does not mean automatic displacement: foreign workers can also complement local labour where vacancies cannot otherwise be filled.
The regional comparison is striking, although the figures are not EUR exact and fully comparable because some countries publish net minimum wages and others gross amounts:
Market
2026 minimum wage
Source
Montenegro proposal
EUR 1,000 / 1,250 / 1,400
Net, by education required
Bosnia - Federation
~ EUR 525
Bosnia - Republika Srpska
~ EUR 511
Kosovo
~ EUR 500
Albania
~ EUR 500
Croatia
~ EUR 1,050
*Comparison note: Bosnia and Herzegovina has no single nationwide minimum wage. Currency conversions use the fixed EUR/BAM rate and are rounded. Gross and net figures should not be treated as equivalent; taxes, contributions, productivity and other operating costs determine the real employer burden.
If Montenegro adopts net minimum floors materially above regional levels, labour-intensive employers may place new production sites, shared service centers or support functions in Bosnia and Herzegovina, Kosovo or Albania instead. Also Croatia competes as it has a higher gross floor but also offers direct EU-market access and a different tax and productivity environment. Wages are not the only factor, but an unsupported cost increase would weaken Montenegro in regional investment decisions where applicable.
The challenge is to retain Montenegrin workers without pricing local businesses out of the region. This requires training and routes into work for local jobseekers, equal employment rules, and salary increases supported by productivity, infrastructure and a more efficient business environment.
Opportunity and risk for employers
The proposed EUR 1,250 and EUR 1,400 floors would sit clearly above the current national average. Sector averages were only EUR 1,025 in construction, EUR 1,020 in hospitality, EUR 926 in manufacturing and EUR 873 in administrative and support services.
The impact would extend beyond employees currently below the thresholds. If a graduate must receive at least EUR 1,400 net, experienced staff and managers may expect corresponding increases. Labour-intensive companies, new investors and contractors with fixed-price agreements could face significant salary compression and cost pressure.
The opportunity is better retention, stronger household demand and potentially less emigration. The threats are higher prices, weaker hiring, especially of young or entry-level workers, and postponed investment if productivity and revenue do not keep pace. Consumer prices were already 4.5% higher year on year in August 2026.
As argued in our earlier article, First Put the House in Order Then Build an Economy That Can Sustain Higher Salaries, sustainable increases require stronger productivity, skills, infrastructure, legal certainty and public administration.
What employers should do, and how we help
(New) employers should map every role to its required education level, model the three proposed floors across the entire salary structure, and review contracts, job descriptions, benefits and fixed-price commitments.
Foreign businesses should connect this analysis with recruitment, immigration, payroll registration, tax, social insurance and PE (permanent establishment) planning.
Ekonomik Accountants supports local and international employers with payroll-impact modelling, accounting and tax compliance, HR administration, employment documentation, residence and work permits, company establishment and cross-border advisory.
This article reflects publicly available information reviewed on 28 September 2026. The Euro Model remains a Government proposal and may change during the legislative process. This article is intended as general information and not as legal or tax advice.