The Parliament of Montenegro adopted amendments to the Labor Law, which provide for an increase in minimum wage from 222 to 250 euros. The changes will take effect on October 1, 2021.
The deputies did not accept the amendments, which proposed setting the minimum wage at 50 percent of the average. During the parliamentary debate on these changes, the government was asked to reduce tax levies on employers so as not to increase undeclared employment.
Also, amendments were adopted to the Law on Personal Income Tax and Contributions to Compulsory Social Insurance. Over the next three years, employers will be exempted from paying taxes and contributions, 90% for wages paid this year, 60% for next year's wages, and 30% for those who will be paid wages in 2023. This law will be in effect from January 1.
In addition, amendments to the Value Added Tax Act were adopted, which increase the taxable turnover for VAT registration from 18 to 000 euros. The changes will take effect as soon as possible.
