Montenegro is a country in southeastern Europe, which translates to “Black Mountain.” The country is located on the Adriatic Sea and can be viewed as a part of the Balkans. As the COVID-19 pandemic started to spread across the world, Montenegro was significantly affected, especially regarding the country’s economy and livelihood. The situation was so drastic that it reached the stage of recession in the country.
As per the World Bank report, the economic growth was down to 9%, which further led to job losses and poverty. After the devastating financial condition in the country, the market started to bounce back at the beginning of 2021, when Article 42 of the Montenegro Labor Act was introduced. Based on this act, the companies began to allocate work from home and search for remote workers. At present, around 35.4% to 40% of organizations face a talent gap. The gap has been created because either the skills they require are not available in the market or there is a low level of activity, despite the challenges of unemployment in the country.
If you wish to tap into Montenegro’s immense potential, Skuad can assist you in scaling up your company and expanding. To hire in Montenegro, talk to Skuad experts.
Overview of Montenegro
Population: 628,143 people (2019)
Gross Domestic Product (GDP): USD 5.54 billion (2019)
As per World Bank Records, the Montenegro economy is small yet open. After the pandemic, it is expected that the economy will rebound as the expected Gross Domestic Product (GDP) growth rate in 2021 is 7.1%. Moreover, the economy will likely grow by 3.5% at the end of 2023. In October 2020, the World Bank projected that by the end of 2021, the economy would improve by 6.9%.
The market of Montenegro is severely affected by the outbreak of the coronavirus. To reduce the impact on the job market, the government introduced a wage subsidy program, in which EUR 80.9 million was distributed among employees. Since the service sector was considerably affected, the government paid 90% of the amount to fulfill wages. However, since it is expected that the growth prospects of the economy will improve in 2021 by 6.9%, the job market will also improve.
Since the country’s economy is small, the Montenegro government focuses on transforming the economy from a planned economy to a market economy.
The largest sector in the country is the agriculture industry. Another significant industry is the manufacturing industry. The industry brings substantial growth for the country when it comes to export, as 90% of Montenegro’s aluminum and steel is exported. The country’s steel production capacity is 100,000 tons in aluminum and 400,000 tons in steel.
The country’s average internet speed for fixed internet connections is 59.74 Mbps, and for mobiles, it is 40.69 Mbps. The fixed broadband download speed is 60.02 Mbps, and the upload speed is 9.33 Mbps, whereas, for mobiles, it is 44.79 Mbps for downloads and 17.33 Mbps for uploads. Due to COVID-19, the government is further focusing on implementing flexible remote working conditions in the country.
To know more about hiring remote employees in Montenegro, book a demo with Skuad now.
Hiring Cost in Montenegro
Cost of Living
The cost of living in Montenegro is considered cheap compared to the other parts of the world. The country is ranked 120 out of 197 under the cost of living index. The government ranks 74th in terms of the best country to live in. EUR 484.75 is the average remuneration after taxes. Moreover, locations also play an essential role in determining the cost of living. The following table presents the average expenses of living.
Cost of Renting
The cost of living varies, even though Montenegro is a small country and is surrounded by old cities. The cost of living in urban areas is considerably higher than in the other towns. A person can live for as little as EUR 10.15 in Montenegro for one day.
The large cities have higher expenses, whereas, in the smaller cities, the costs are lower. Major cities include Nikšić, Podgorica, Pljevlja, Bar, Cetinje, and Herceg Novi.
The table below summarizes the cost of renting and its various elements.
The rent structures of the city center area and outside the city center area are described in the table below.
Hiring Cost to Company
The hiring cost for the employers in Montenegro is EUR 217.32, where the employees have to work for eight hours a day, which is 40 hours a week. The amount of time spent in labor cannot exceed more than 10 hours a day, which is 50 hours a week. Employees get 20 annual leaves, and employees who work six days a week can spend 24 days working in a month.
Skuad experts can help you handle global talent seamlessly, whether it concerns vetting, recruiting, hiring, or onboarding employees. Get in touch with us to learn more!
Talent in Montenegro
Key Hiring Industries in 2021
The major sectors are divided into three parts, including the agriculture, manufacturing, and service sectors. Among the manufacturing industries, steel and aluminum face the maximum exposure. In the service sector, the main categories are consumer goods, health hotels, and tourism. It is expected that in 2021, the employment rate in the agriculture sector will be 7.8%, 19.2% in the manufacturing industry, and 73% in the service sector, as, by the year 2021, it is expected that the industry will grow by 6.9%.
Get in touch to know more.
Top Skills in Montenegro
Although Montenegro is a famous tourist destination, the country does not have a wide job market, as the growth prospect for fast and high earning is relatively low. Moreover, as it is a small country, the unemployment rate is 19.5%. Therefore, it is safe to say that prospective employees have to face increased competition in the market to get a job. In the job market, there are four types of employment available.
- Permanent job
- Seasonal job
- Temporary job and
- Freelance employment
- In terms of permanent jobs, the industries that predominantly recruit are the banking, healthcare, technology, and manufacturing sectors.
- The prospective employees rely on the hotel industry, restaurants, and the tourism industry for seasonal work. Also, real estate and diving are further considered seasonal employment opportunities.
- Temporary work opportunities are low. This includes short-term projects for the industrial and manufacturing sectors.
- On the other hand, the freelancing market is quite huge as there are a lot of internet sites that offer freelancing opportunities, such as www.freelancehunt.com, www.freelansim.ru, www.fl.ru, www.24freelance.net, and www.freelancejob.ru.
Top Skills: Occupation-wise
In the city center areas, the demand for professionals is high in the regions where tourists are most likely to visit. As many people from the Commonwealth of Independent States (CIS) countries and Russia visit for a living, Montenegro is rapidly developing its real estate market. Apart from that, the professions that are highly in demand are,
There are also vacancies for various job roles such as lawyers, accountants, state officers, and attorneys. Montenegrins can gain jobs through Thematic online sites, pages in social networks, local newspapers, and recruitment agencies. Also, word of mouth is a standard process for the locals to get a job in the country. To gain an excellent job in the city center area, the prospective employees have to have,
- Sales skills
- Foreign languages skills
When there’s so much talent on offer, it becomes tricky to hire the right set of people for your team. Skuad can help you find, hire, and manage excellent local talent and make expansion in Montenegro a hassle-free task.
Salary Structure for Various Roles in Montenegro
The average monthly salary is EUR 2,670 per month. Despite that, the employment rate is only 54% compared to other countries in Europe, where the employment rate is around 75%. Fifteen is the permitted age to work, which signifies that 46% of the population are of working age. Therefore, better opportunities in hiring need to be facilitated to meet the demands of employment.
Learn more about Montenegro’s diverse salary structures by talking to Skuad experts.
Employment Laws in Montenegro
Montenegro follows the 2008 Labor Act, where a detailed description of labor rights is mentioned. It includes monetary claims from work, systematization of workplaces, and fixed employment agreements. However, from January 2020, The new Labor Act (OGM, no.74/19) has come into action, as Montenegro has passed the regulation to harmonize with EU acquis under the Stabilization and Association Agreement with the European Union. The employees can gain the following benefits under the act.
- Monetary claims
- Public announcement of the vacant posts
- Agreements based on fixed-term employment
- Employee agreement annexation
- Work time maintenance
- Employee termination
- Dispute resolution
- Penalty provisions
Skuad’s EOR solutions for Montenegro can help expand your business while adhering to tax legislation, labor laws, and contracts.
How Can Skuad Help You in Hiring in Montenegro?
Since hiring is not easy, especially when it comes to foreign countries, it is best to take the help of an expert who can provide you step-by-step guidance. As a prominent and reputed Employer of Record (EOR) organization, Skuad can provide the best opportunities to hire talented people looking for new and better job prospects. It’s the perfect solution to build, pay, and manage a team in Montenegro. Connect with Skuad experts today to learn more.