Montenegro

INDICATORS OF THE QUALITY OF WORKERS’ RIGHTS 2025

Kristina Janković

Pavić Radović

1. EMPLOYMENT OPPORTUNITIES

1.1 Normative foundations of the rights of workers

The current Labor Law of Montenegro was adopted on December 23rd, 2019 and is a key law that regulates the field of work and employment. At that time, about 40 new norms were adopted compared to the previous law. Even though it was enacted in agreement with social partners, some critiques remained on the section regarding employment termination, which now made it easier to do so. The first significant changes^[1][2], related to the increase in wages, occurred in December 2021: the minimum wage was raised from 250€ to 450€ (and other wages rose accordingly). The growth mostly occurred due to a reduction in the tax burden and contributions, which then spilled over into net earnings. The most recent amendments from September 2024^[3][4] brought yet another – and this time, dual – increase in the minimum wage: to a net amount of 600€ for those employed at positions requiring up to high school diploma, as well as 800€ for those employed at workplaces with a university degree or higher level of educational qualification. The time needed to earn a permanent employment contract was also reduced from 36 to 24 months.

Besides the Labor Law, workers’ rights are also regulated by other laws: the Law on Occupational Safety and Health, the Law on the Prohibition of Discrimination, the Law on the Prohibition of Harassment at Work, the Law on Strike, the Law on Income Tax for Physical Persons, the Law on Compulsory Health Insurance, the Law on Pension and Disability Insurance, the Law on the Labor Fund, and the Law on Trade Union Representativeness. Besides laws, there are general, branch, and collective agreements with employers, which foresee the possibility of improving workers’ rights beyond what is established by the primary legislation. Workers’ rights can be protected on three levels: directly with the primary employer, at the Agency of Peaceful Resolution of Labor Disputes and the Center for Mediation, and before the competent courts.

A new Draft Law on Amendments to the Labor Law^[5] was subject to public consultation on 11 July 2025 and is still in parliamentary procedure pending adoption. The amendments have not yet been enacted, hence, the 2024 version remains the applicable law.

The Draft aims to strengthen transparency, gender equality in pay, and employee protection, while introducing new obligations for employers regarding reporting and disclosure of data. Furthermore, it incorporates Directive (EU) 2023/970 of the European Parliament and of the Council on strengthening the application of the principle of equal pay for men and women for equal work or work of equal value through pay transparency and enforcement mechanisms, as well as Directive (EU) 2022/2041 of the European Parliament and of the Council on adequate minimum wages in the European Union.

Key novelties introduced by the Draft, and future normative steps include:

1. Pay transparency: mandatory disclosure of salary/ pay range in job postings; gender-neutral job titles.
2. Prohibition of prior salary inquiries and prohibition of “pay secrecy” clauses.
3. Definition of work of equal value: includes qualifications, responsibility, skills, effort, and working conditions.
4. Right to pay information: employees may request average gross salary (their own and that of others performing equal work, disaggregated by gender).
5. Protection of rights in disputes: entitlement to material and non-material damages; burden of proof on the employer.
6. Reporting on pay differences: mandatory for employers with 100+ employees; if a ≥5% gap remains unexplained/unrectified, a joint assessment with trade unions is required.
7. Phased implementation: reporting obligations start in 2027 for employers with 100+ employees; for those with fewer than 100 employees, voluntary reporting is envisaged from 2031.
8. Minimum wage: new criterion of “purchasing power”; determined for a two-year period; pro-rata application for part-time contracts.
9. Information to trade unions/employee representatives – regarding salary calculation elements, employee rights, and reporting methodology.
10. Sanctions: for failure to provide data, submit reports, ensure gender-neutral job titles, and related breaches.

1.2 General situation on the labor market

According to the Labor Force Survey by the Statistical Office of Montenegro for 2024 (https://www.monstat.org/uploads/files/ARS/2024/ARS%20saopstenje_2024.pdf)^[6][7], the statistics were as follows:

• activity rate was 63.9% (percent of the active population of the total labor capable population of the same age group);
• employment rate was 56,6% (percent employed of the total labor capable population of the same age group);
• the statistics on informal employment are unavailable;
• the unemployment rate was 11,5% (percent of unemployed persons within the total number of active population of the same age group).

The total number of workers in 2024 was 282,600. According to data from the Ministry of Public Administration, in cooperation with the Ministry of Finance (https://www.gov.me/dokumenta/2e404327-0b57-488f-8cdd-34fd457e1e3e), in September 2024 there were 53,648 people employed in the public sector, while the rest were employed in the private sector.

The breakdown by employment status is as follows: employed workers make up 82,2%, self-employed 16,5% and family workers 1,3%.

Divided by sectors of activity, it is shown that the largest share of employees are in the service sector, 76,6%, then in the sectors of non-agricultural activities (industry and construction), 19,1% and in the sector of agriculture, forestry, and fishing, 4,3%.

1.3 Other important issues

The unemployment rate has significantly decreased in the past 5 years: from 19.4% in Q1 of 2019 to 11,5% in 2024 (https://www.monstat.org/uploads/files/ARS/2024/ARS%20saopstenje_2024.pdf).^[8][9] However, we must keep in mind that according to the methodology of the Statistical Office, the status of an employed person applies to people who conduct any kind of regular or usual work for pay or for profit (in cash, goods, or services) for at least one hour. People who are being paid in exchange for workplace training (interns) are also counted as employed persons. Additionally, this includes informal employment, even though there are no separate statistics about informal employment. On the other hand, the unemployment rate applies only to those persons who during the relevant period did not have paid work or were not self-employed, did not have any type of paid work and were actively looking for a job during that period. In that sense neither statistic gives us a realistic picture about employment or unemployment. The youth unemployment rate is still high and, according to statistics from the Employment Office of Montenegro from the end of 2023, was 20%. However, that is a statistic that only covers those who are registered as unemployed. Other relevant research (Centre for Civic Education, Center for Investigative Journalism of Montenegro) from this period shows that out of 142,000 young people in Montenegro, 84,000, or 60%, are unemployed (in the sense that they have no employment relationship of any kind).

2. ADEQUATE EARNING AND PRODUCTIVE WORK

2.1. Basic data on earnings

The basic data on workers’ earnings are as follows:

• The minimum wage in Montenegro is set by the amendments to the Labor Law from September 2024, which foresees dual minimum wage: a net amount of 600 € for those employed at employment positions requiring up to a high school diploma, and 800 € for those employed at positions requiring a university degree or higher level of educational qualification);
• The average salary 2024 was 1,083 € gross, and 876€ net, according to data from the Statistical Office;^[10]
• median salary is not available (the statistical office cannot calculate the median wage on the basis of their existing research methods. Monthly research on salaries is conceptualized in the way that reporting units deliver the total amount of all paid out salaries for employees who received a salary in a given reference period, and to calculate the median salary they would need data on the individual level, namely data on the individual earnings of all employees);
• the ratio of the living wage and minimum wage can, in the context of Montenegro, be explained by the fact that the minimum wage covers less than one third of the trade union consumer basket, or 28.9% the trade union consumer basket, 2,075 Q3 of 2025 according to the methodology of the Center for Education, Information, and Trade Union Research of the Union of Free Trade Unions of Montenegro, was 2,075 € for the Q3 of 2025);^[11]
• the largest average net salaries in August 2025 were in the finance and insurance sector (1,607 €) and in the electrical supply sector (1,399 €); the lowest salaries were in the processing industry sector (893 €), administrative and service sector (860 €) and in the artistic, entertainment and recreational sector (893 €). (https://www.monstat.org/uploads/files/zarade/2025/8/RAD_CG_Avgust_2025.pdf)

2.2. Other important issues

When it comes to the living wage or the wage which would cover life expenses, official statistical overviews use the category „minimum consumer basket“. This category of the Statistical Office of Montenegro refers to the spending a household undertakes to satisfy its minimum needs, defined as the minimum value of nutritional caloric intake daily, per person. The value of the minimum consumer basket for a four-person household is made up of expenses of the second, third, and fourth decile of the poorer part of the population according to the level of consumption per capita, and in December 2023 was 830 €.^[12] This number, precisely due to its methodology, was not used as a realistic economic comparison of wages and realistic living expenses.

Average salaries in Montenegro have increased by 95% over the past 6 years (December 2019 – 520 € euros; August 2025 – 1,015 €). However, due to the high rate of inflation that also occurred in the same period, purchasing power did not increase equivalently.

3. DECENT WORKING TIME

3.1. Basic data on working time

According to the Labor Law of Montenegro:

• the legal maximum duration of full-time work: 40 working hours (not including overtime work);
• the average working time (Eurostat data for 2020): 42.8 weekly working hours;^[13]
• the legal maximum duration of overtime work: 10 hours weekly, 250 hours annually;
• the legal maximum duration of working time when redistributing working time: 54 hours, or 60 hours a week in seasonal positions, but the average working time of an employee within a calendar year must not exceed the 40 hours per week;
• Minimum hours of daily rest: 12 continuous hours
• Minimum hours of weekly rest: 24 continuous hours;
• Minimum duration of annual leave is 20 working days.

3.2. Additional information on working time

The Labor Law gives prescribed reasons for implementing overtime work (in the case of sudden growth in the volume of work, in the case of a force majeure, and in other exceptional cases), the methods and procedures for its implementation and its length. Exceptions are services of special importance such as health institutions, the Armed Forces of Montenegro, and bodies for implementing criminal sanctions, who regulate working time, including overtime, in accordance with their needs.

The Labor Law gives prescribed reasons for implementing redistribution of working hours (when that is required by the nature of the activity, organization of work, better usage of work tools, more rational use of working time and fulfilling certain tasks within set deadlines).

Overtime is, according to the General Collective Agreement, paid 40% more than the base pay.^[14]

A potential change regarding working hours has been indicated in the announcements by the Government of Montenegro about the planned introduction of a seven-hour working day in both the private and public sectors. As stated, the intention is to carry out one of the largest labor reforms aimed at “improving citizens’ quality of life and providing more time for families, while also ensuring more efficient and productive work.”

In this regard, meetings were held between the Minister of Labor, Employment, and Social Dialogue and the trade unions and employers with legally established representativeness, as well as a session of the Social Council, during which the first steps toward introducing a seven-hour working day were agreed upon and the methods for its potential implementation were defined. Among other things, the question remains of how the seven-hour working day will affect the military and the police, and some economy branches have expressed concern and the need for further dialogue on this matter.

It has been announced that the seven-hour working day is planned to be introduced in cooperation with all social partners in both the public and private sectors and will not affect the reduction of salaries, which will be a legal imperative.

4. STABILITY AND SECURITY OF WORK 

4.1. Information on stability of work

According to data from the Statistical Office of Montenegro:

• 6% of workers in Montenegro, in the first quarter of 2024, had an indefinite term work contract;
• 4% of workers in Montenegro, in the first quarter of 2024, had a fixed-term work contract;
• since 2020, there are no statistics on the number of workers hired through agencies.

Fixed-term contracts are regulated by the Labor Law of Montenegro:

• the maximum length that this type of contract can last was reduced during the recent changes to the Labor Law in 2024 from a maximum of 36 months to a maximum of 24 months, with foreseen exceptions when it comes to replacing a temporarily absent employee, conducting seasonal jobs, and working on an individual project until that project is over;
• the Labor Law proscribes that as a rule indefinite term employment contracts are concluded, and that a fixed-term employment contract can be signed only as an exception, when its end point is agreed on ahead of time with a deadline, completion of a certain position, or the completion of a certain event;
• there are possibilities of concluding several consecutive fixed-term contracts (there is no limit) whereby the Labor Law regulates that their total length, continuously or with breaks, cannot be longer than 24 months.

4.2. Information on security of work

The Labor Law of Montenegro:

• prescribes the reasons that can be the basis for terminating an employment contract (collective dismissal of workers and in the case of individual dismissal);
• prescribes the procedure for terminating an employment contract, whereby in the case of an individual termination of an employee the employer can terminate the agreement, without conducting a procedure for determining responsibility, if there exist valid reasons that are stated in the Law.

A mandatory notice period of at least 30 days from the day of delivering notice of the termination of an employment contract is prescribed as a right and obligation, whereby there are also prescribed exceptions when that notice period does not need to be fulfilled from the side of the employee as well as the employer. If the employee stops working before the end of the notice period at the request of the employer, they have a right to compensation for earnings and other employment-based rights as if they had worked until the end of the notice period.

Severance is guaranteed in situations where there was no longer a need for the work of the employed person, although only those who were employed by that employer for at least 18 months have a right to it. Severance cannot be lower than three average monthly salaries without taxes and contributions earned at that employer in the previous half-year, or the average monthly salary without taxes and contributions in Montenegro in the previous half-year, if that is more favorable to the employee. Larger severance amounts can be prescribed through branch collective agreements, collective agreements with the employer, or by the employment agreement.

In the case of termination, all employees have a right to the payout of due and unpaid salaries and other rights that they earned while working for the employer, and employees can have other rights as well, depending on the way that the working relationship was terminated.

Insurance (health, etc.) in the case of unemployment is secured through the Employment Office in accordance with the Law on Employment and Exercising Rights with Respect to Unemployment Insurance. Rights to financial compensation are secured by insured persons who before the end of a working relationship had insured status for at least 12 continuous months, or for the past 18 months with breaks, and whose employment relationship was terminated without their consent or fault.

4.3. Other important issues

Even though the law prescribes that an employment contract must as a rule be concluded for an indefinite term, in practice the situation is reversed, so at the beginning of an employment relationship, employees most often receive a fixed-term work contract. This practice is present in both the public and private sector and is used as long as it can possibly last. A negative trend over the past few years that is present in the public sector is signing service contracts (contracts that do not begin an employment relationship and are defined by the Law on Obligations). There is no exact statistic about their number, but according to data on budget spending, this item increased by two and a half times over the past 6 years (8.7 million € in 2019, and as much as €20.8 million was spent for service contracts from the budget of Montenegro in 2024)).^[15][16] It is indicative that service contracts are often concluded for positions that are systematized by the Law on Work Posts Systematization, rendering this type of contract illegal.

5. EQUAL OPPORTUNITY AND TREATMENT

5.1. Information on the national anti-discrimination system

Antidiscrimination politics in Montenegro are regulated primarily by the Constitution, and then by individual laws by sector. The Law on the Prohibition of Discrimination (last amendment in 2017), which prescribes the jurisdictions of different bodies and responses in case the law is violated, is key. The Law on the Prohibition of Discrimination is the basic law which defines discrimination and establishes measures to prevent discrimination based on different personal characteristics, including gender, ethnic identity, religion, sexual orientation, disability, etc. The Draft Law on the Protection of Equality and the Prohibition of Discrimination, draft published in June 2025, is currently undergoing parliamentary proceedings.^[17]

The Labor Law regulates antidiscrimination in the field of work and employment, including the rights of employees to equal treatment when it comes to employment, promotions, work conditions, and termination. The Law on Gender Equality in particular covers the question of gender-based discrimination and promotes equality between men and women. A new law on gender equality is currently being developed, as of October 1 2025. The LawAgainst Discrimination of Persons with Disabilities includes measures aimed at protecting people with disabilities from discrimination in various fields, including employment, education, and access to public services. All of these laws within their frameworks prescribe the jurisdiction of governing bodies and courts in the case of discrimination, as well as the legal processes themselves. Following the Law on the Protector of Human Rights and Freedoms of 2011, the Institution of the Protector of Human Rights and Freedoms (Ombudsman) was established as a special mechanism through which procedures for protection against discrimination can be initiated.

In addition to national legislation, Montenegro is a party to numerous treaties and international conventions that regulate antidiscrimination, such as the European Convention on Human Rights and the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW).

5.2. Information on the national gender equality system

Discrimination based on gender or gender roles is banned in Montenegro, and this is regulated by the Law on the Prohibition of Discrimination and the Law on Gender Equality. The Labor Law forbids employers from demanding information on familial or marital status and family planning, and from demanding the deliverance of documents or other pieces of evidence that are not of immediate importance to fulfilling the tasks for which the employment relationship is being created.

In Montenegro fathers have the right to parental leave, which is regulated by the Labor Law. Parental leave can be used for as long as 1 year from the day of the child’s birth. Both parents have a right to use it in equal parts, but it is also possible to transfer parental leave from one parent to another, after 30 days of its commencement. Additionally, the employed parent has the right to use parental leave even if one parent is unemployed.

Other instruments also regulate this area of gender equality, such as the National Gender Equality Strategy 2025–2029, which, within the framework of women’s economic empowerment, calls for measures to integrate domestic work and family care into the legal framework, introduce paid paternity and shared parental leave to promote joint caregiving, strengthen the implementation of anti-discrimination legislation, particularly in employment and access to economic resources, and undertake other related measures

5.3. Information on the effects of the antidiscrimination system

According to data from the Statistical Office of Montenegro, out of the total number of the labor active population 54,9% are men, and 45,1% are women, which creates a gender gap of 9.8 percentage points. Additionally, of the total number of employed persons 55,3% are men, and 44,7% are women, creating a gender gap of 10.6 percentage points.^[18]

The principle „equal pay for equal work“ is prescribed by the Labor Law of Montenegro. Equal pay is defined as such that the employee is guaranteed equal pay for the same work or work of the same value, whereby work of the same value is implied to be work which requires the same level of educational, and professional qualification, responsibility, skill, work conditions, and work results. However, according to a study conducted by the Statistical Office in cooperation with the European Institute for Gender Equality called the „Gender Equality Index“^[19][20] from July 2023, the gender pay gap is 13.9%, which means that women earn only 86.1% of the average salary earned by men for performing the same work.

5.4. Other important issues

Even with a good legal basis in the field of antidiscriminatory policies, discrimination is still present in the field of work and employment. The area of work is marked by women’s limited access to managerial and leadership positions. For example, the adoption of the Regulation on the mandatory participation of 40% of women on the management boards of public enterprises, as well as the amendments to the Companies Law in order to align with Directive (EU) 2022/2381 on gender balance on company boards, are essential for the further strengthening of the legislative framework and the promotion of gender equality in this area. Even though statistically more women than men have university degrees, women are still more likely to have lower paid jobs.

According to the latest studies^[21] by the Center for Democracy and Human Rights (CEDEM) from 2023, people with disabilities are the most discriminated against in the field of work and employment. In the Protector of Human Rights and Freedoms’ Annual Report for 2024 it is stated that out of 166 discrimination-related complaint procedures, the highest number – 82 – were filed in the area of labor and employment, which is consistent with the trend observed in recent years.^[22]

6. SAFE WORK ENVIRONMENT 

6.1. Indicators of providing adequate measures for protection and safety of workers

• According to official data from the European Commission’s 2024 Report on Montenegro, 1 worker was killed in 2024.^[23] According to data of the Safety at Work Association of Montenegro – SWAM (collected since 2012), there were 7 fatalities in 2024;
• According to official data from the European Commission’s 2024 Report on Montenegro, 2 serious occupational injuries were reported in 2024;
• NO DATA on the number of injured workers per 100,000 workers (annual data);
• NO DATA on the number of serious bodily injuries per 100,000 workers (annual data);
• Total 24 labor inspectors and 10 inspectors of occupational safety and health, or86 labor inspectors per 10,000 workers and 0.36 occupational safety and health inspectors per 10,000 workers.^[24]

^[25]

The right to paid sick leave is regulated primarily by the Labor Law of Montenegro, and outlined in more detail by the Law on Compulsory Health Insurance and related regulations. The right to paid sick leave is earned by employees that have an employment relationship (fixed or indefinite term). Sick leave with a length of 30 days is granted by the primary doctor, and over 30 days by a Medical Commission. The employee is obligated to deliver a confirmation from a medical doctor, at the latest three days from the day that they were temporarily incapacitated to work, personally or through a third party, and a report on temporary inability to work must be delivered with a deadline of five days from the day the report was produced. The Law prescribes that compensation during the length of sick leave cannot be lower than 70% of the average wage of the employee for the past year, and it is most frequently paid out. However, there are collective agreements, such as the Collective Agreement for the Field of Administration and Justice,^[26][27] where a more favorable compensation at the level of 90% of the salary was achieved, which is allowed by Law. In the situation of certain illnesses and health conditions (listed in the Law on Compulsory Health Insurance) that compensation is 100%.

If the employer suspects the validity of the reason for missing work, they can submit a request to the authorized body to reexamine temporary incapacity to work, in accordance with regulations on health insurance. In previous years that review process was not adequately solved. Through amendments^[28][29] to the Law on Compulsory Health Insurance in 2021 two review commissions were created. In March 2024 the Government of Montenegro, on the suggestion of the Ministry of Health, formed the National Commission for the Control of Temporary Incapacity to Work.

6.2. Arrangement of the occupational safety and health system

The Law on Occupational Safety and Health^[30][31] is very detailed. There are clearly defined internal and external mechanisms to protect workers’ rights with regards to safety and health at work. A worker that considers their safety, life or health are in danger, namely, that protection measures at work are not respected, has theright to refuse to work in those conditions and to leave the workplace. A new law on occupational safety and health is currently, as of October 1, 2025, in parliamentary procedure.

As of October 1, 2024, the Administration for Inspection Affairs was abolished. Labor and Occupational Safety and Health Inspectorates now operate as units within the Ministry of Labour, Employment and Social Dialogue. The occupational safety and health inspectors represent one of the external mechanisms to protect workers’ rights in this field; they can stop the work process at a certain workplace, in a certain work environment, or with an employer as a whole, if they believe that there is a danger to the life or health of workers or third parties.

6.3. Other important issues

Even though the law and many regulations on health and safety at work in different fields are developed in detail, they are not applied.

The Law on Occupational Safety and Health is currently in parliamentary procedure, pending adoption. The Draft Law was subject to public consultation until 11 August 2025.

Key amendments from the Draft:

1. Expanded definition of employer and employee: An employer is now defined not only as a legal entity or entrepreneur, but also as state bodies, local self-government units, independent regulatory authorities, and natural persons acting as investors; An employee is considered any person working for an employer, whether under an employment contract or on another legal basis.

This explicitly establishes that the law applies to all entities and all forms of engagement.

2. Investor obligations: The investor is obliged to appoint an occupational safety and health coordinator even when engaging only one contractor, if that contractor involves subcontractors; Both the investor and the contractor are required to prepare and implement an occupational safety and health plan in cases of construction, reconstruction, adaptation, rehabilitation, or demolition of facilities.
3. Mandatory insurance for high-risk jobs: It is prescribed that insurance for employees performing work under special conditions or involving increased risks may not be less than 1% of the minimum monthly wage.

This introduces a precise financial obligation for employers to ensure the protection of employees working in high-risk positions. The new law clearly establishes that all entities, from state institutions to private investors, fall under occupational safety and health obligations, with stricter rules particularly for investors and for high-risk jobs through mandatory insurance and preventive measures.

7. SOCIAL SECURITY

7.1. Adequate amount of workers’ pensions

According to available statistics, the following comparisons are possible:

• minimum pension amount s 450 €, since January 2024;
• the average pension at the end of the first quarter of 2024 is 488.48 €;^[32]
• ^[33]median pension amount is not available;
• the ratio of the minimum pension to the living wage in August 2025 is 1:4.11 (minimum pension covered 24.32% of the living wage)^[34][35], and to the minimum consumer basket of the Statistical Office^[36][37] (830 €) is 1:1.84 (minimum pension covered 54.21% of the minimum consumer basket);
• the ratio of the average pension to the living wage in August 2025 is 1:3.46 (average pension covered 28.9% of the living wage), and to the minimum consumer basket of the Statistical Office is 1:1.55 (average pension covered 64.5% of the minimum consumer basket);
• the number of employed pensioners in January 2023 was 3,139;^[38]
• ^[39]there is no precise data for the number of older people that reached the end of their working life and did not fulfill their rights for any type of pension.

7.2. Other important issues

A worker acquires the right to an old-age pension when they reach the age of 65 and have at least 15 years of insurance contributions. You can get an old-age pension when you’ve worked for 40 years and reach the age of 61. The entitlement to an old-age pension is accrued upon completion of 40 full years of employment (excluding beneficiary work experience), irrespective of age.

The Law on Pension and Disability Insurance^[40][41] from December 2023 raised the minimum pension from its previous level of 290 € to the minimum level of 450 €. However, other pensions did not grow in relation to this increase: neither those between 290 and 450 €, or those above 450 €. It is believed that this is a case of discrimination against those that previously had pensions above the minimum level, that is those that had more years of seniority, considering that they are now equal. Additionally this increase did not apply to those who receive the so-called “proportionate pension”: the pensions of citizens that earned their seniority in Montenegro and in some other country, usually in other former Yugoslav republics. Their work experience is added up and each country pays out the amount for work on its territory. One part of pensioners with proportionate pensions in Montenegro currently receive between 50 do 250 €, and increases^[42][43] of their pensions are announced for 2025.

The so-called old-age benefit as the equivalent of an agricultural pension for people, that is holders of rural homesteads that never had formal work experience, according to the Law on Agriculture and Rural Development of Montenegro^[44][45] amounts to 70% of the lowest pension in Montenegro, that is, the old age benefit amounts to 315 €.

8. SOCIAL DIALOGUE, EMPLOYERS’ AND WORKERS’ REPRESENTATION

8.1. Basic data on effects of social dialogue and collective bargaining

• NO DATA for the rate of unionization of workers (trade union density rate), although it is important to emphasize that the number of union members is continuously falling with the decline of trade union power on a societal level.
• Collective agreements coverage rate (national) – All employees in Montenegro are covered by a general collective agreement. The number or percentage of branch agreements and the percentage of coverage among employees is unknown, as well as the number/percent of collective bargains on the level of the employer.
• There are two union federations on the national level and both are members of the Social Council, which is established on a tripartite basis and consists of representatives of the Government, the representative trade union organizations and the representative association of employers.^[46]

^[47]

8.2. Additional information on social dialogue bargaining

• Montenegro has a permanent Social Council on the national level. That is a tripartite body made up of delegates of the Government, delegates of the representative association of employers and delegates of the two representative union centrals.
• It is known that there is a Social Council of the Capital City of Podgorica, and 5 local municipalities in Montenegro.
• There is one general collective agreement.
• It is not known if there are other bipartite or tripartite bodies in existence.
• Foreign employers do not have their direct delegates, but are included in collective bargaining as members of the representative associations of employers.

8.3. Other important issues

Even though popular thinking states that decisions about economic and social rights are really made by the Government and a few influential employers, looking at normative law, many social rights in Montenegro have in large part been preserved. The reason behind that can also be found in the fact that every fifth citizen is employed in the public sector, but also that a large number of private employers depend on contracts with the government. Social dialogue occurs on the level of the Social Council which is active mostly around a few most important questions such as implementing the Labor Law. More recently its legitimacy has been contested by new associations of Montenegrin employers, who dispute the representativeness of the existing one and are demanding its review. There are serious problems with the functioning of social dialogue.

Out of the two national union federations, one,the older one, almost always aligns with the politics of the Government. The other one, smaller but more active in defending workers’ rights, very often does not and attempts to influence the change of those policies, with mixed success. What is obvious is that the number of union members is falling and that young people are not prone to union activities. One of the reasons behind that is the fact that in Montenegro 99% of businesses are small and micro businesses where union organizing is impossible. Even though the work of unions is usually unimpeded, every attempt of more serious union organizing is blocked with all methods, in which the state takes the primary role. The most recent examples occurred with the Education Union in 2023, when all forces opposed their legitimate strike, and the actions of the Independent Police Union, whose president has been suffering enormous pressure for the past years because of his work. In terms of collective bargains, as we move from the highest to the lower level, although adapting the collective bargain is mandatory by law, it is rarely adapted in practice.

Production of this document was supported by Rosa Luxemburg Stiftung Southeast Europe with funds of the German Federal Foreign Office. This publication or parts of it can be used by others for free as long as they provide a proper reference to the original publication. The content of the publication is the sole responsibility of the Centre for the Politics of Emancipation and does not necessarily reflect a position of RLS.

[1] Law on Amendments to the Labor Law, „Official Gazette of Montenegro,“ no. 145/21, https://www.gov.me/dokumenta/e2671f8f-937e-42a2-a7ad-31522b5554ea

[2] Law on Amendments to the Labor Law, „Official Gazette of Montenegro,“ no. 145/21, https://www.gov.me/dokumenta/e2671f8f-937e-42a2-a7ad-31522b5554ea

[3] Labor Law, „Official Gazette of Montenegro,“ no. 086/24, 10.09.2024, https://www.gov.me/dokumenta/adf2208f-f45a-4cdc-8b21-db7db1978119

[4] Labor Law, „Official Gazette of Montenegro,“ no. 086/24, 10.09.2024, https://www.gov.me/dokumenta/adf2208f-f45a-4cdc-8b21-db7db1978119

[5] See: https://www.gov.me/dokumenta/a37c7742-0833-49c1-ab96-a2067df5b909

[6] Labor Force Survey for 2024, Statistical Office of Montenegro, https://www.monstat.org/uploads/files/ARS/2024/ARS%20saopstenje_2024.pdf

[7] Labor Force Survey for 2024, Statistical Office of Montenegro, https://www.monstat.org/uploads/files/ARS/2024/ARS%20saopstenje_2024.pdf

[8] Labor Force Survey for 2024, Statistical Office of Montenegro.

[9] Labor Force Survey for 2024, Statistical Office of Montenegro.

[10] See: https://www.monstat.org/cg/novosti.php?id=4409

[11] Average salaries – Statistical Office of Montenegro, https://www.monstat.org/cg/page.php?id=2177&pageid=24

[12] See: https://www.monstat.org/cg/page.php?id=2073&pageid=31

[13] Eurostat: https://ec.europa.eu/eurostat/databrowser/view/lfsa_ewhais__custom_18776375/default/table

[14] General Collective Agreement, „Official Gazette of Montenegro,“ no. 150/22, 30.12.2022, https://www.gov.me/dokumenta/503bdde3-a3d5-4f7d-a7eb-8240a1e71255

[15] See: https://standard.co.me/ekonomija/milioni-za-ugovore-o-djelu-moguce-zloupotrebe

[16] See: https://standard.co.me/ekonomija/milioni-za-ugovore-o-djelu-moguce-zloupotrebe

[17] See: https://www.gov.me/dokumenta/16992bb0-f071-4378-b5c1-1aca93ff5ebb

[18] See: https://www.monstat.org/uploads/files/ARS/2024/ARS%20saopstenje_2024.pdf

[19] Index of gender equality in Montenegro, Podgorica, July 2023 https://www.monstat.org/uploads/files/Mediji/Indeks%20rodne%20ravnopravnosti%20MNE%20(2)_25.7.pdf

[20] Index of gender equality in Montenegro, Podgorica, July 2023 https://www.monstat.org/uploads/files/Mediji/Indeks%20rodne%20ravnopravnosti%20MNE%20(2)_25.7.pdf

[21] The Position and Discrimination of People with Disabilities in Montenegro, Podgorica, October 2023. https://www.cedem.me/wp-content/uploads/2023/12/Izvestaj-diskriminacija-osoba-sa-invaliditetom.pdf

[22] See: https://www.ombudsman.co.me/docs/1744199272_izvjestaj%2031-03-2025.pdf)

[23] See: https://enlargement.ec.europa.eu/montenegro-report-2024_en

[24] According to the Report on the Activities of the Administration of Inspection Affairs for 2022, https://www.gov.me/dokumenta/80a07d23-659d-454f-b219-766b642ff224

[25] According to the Report on the Activities of the Administration of Inspection Affairs for 2022, https://www.gov.me/dokumenta/80a07d23-659d-454f-b219-766b642ff224

[26] Branch collective agreement in the field of administration and justice, https://sindupcg.me/granski-kolektivni-ugovor-za-oblast-uprave-i-pravosudja-2/

[27] Branch collective agreement in the field of administration and justice, https://sindupcg.me/granski-kolektivni-ugovor-za-oblast-uprave-i-pravosudja-2/

[28] Law on Compulsory Health Insurance of Montenegro, no. 145/21, https://www.gov.me/dokumenta/4cfecb11-3771-4382-8af7-39124295e3d1

[29] Law on Compulsory Health Insurance of Montenegro, no. 145/21, https://www.gov.me/dokumenta/4cfecb11-3771-4382-8af7-39124295e3d1

[30] Law on Safety and Health at Work, Official Gazette of Montenegro, 044/18. https://www.gov.me/dokumenta/a6a538b0-4884-45fc-8ab8-2240af84c805

[31] Law on Safety and Health at Work, Official Gazette of Montenegro, 044/18. https://www.gov.me/dokumenta/a6a538b0-4884-45fc-8ab8-2240af84c805

[32] Number of pension users and average pensions in Montenegro by type and municipality, PIO fund, https://www.fondpio.me/statistika/

[33] Number of pension users and average pensions in Montenegro by type and municipality, PIO fund, https://www.fondpio.me/statistika/

[34] Living wage was 1850 € according to calculation of the Trade union consumer basket, https://ceisi.me/sindikalna-potrosacka-korpa-biljezi-rast-u-i-kvartalu-2024/

[35] Living wage was 1850 € according to calculation of the Trade union consumer basket, https://ceisi.me/sindikalna-potrosacka-korpa-biljezi-rast-u-i-kvartalu-2024/

[36] Minimal consumer basket estimated 830 € for 2023, Statistical Office of Montenegro, https://www.monstat.org/cg/page.php?id=2073&pageid=31

[37] Minimal consumer basket estimated 830 € for 2023, Statistical Office of Montenegro, https://www.monstat.org/cg/page.php?id=2073&pageid=31

[38] Statistics of the Pension and Disability Insurance Fund of Montenegro: https://rtcg.me/vijesti/ekonomija/397463/pod-kojim-uslovima-se-moze-raditi-i-nakon-odlaska-u-penziju-.html

[39] Statistics of the Pension and Disability Insurance Fund of Montenegro: https://rtcg.me/vijesti/ekonomija/397463/pod-kojim-uslovima-se-moze-raditi-i-nakon-odlaska-u-penziju-.html

[40] Act on Pension and Disability Insurance, „Official Gazette of Montenegro,“ no. 125/23.

[41] Act on Pension and Disability Insurance, „Official Gazette of Montenegro,“ no. 125/23.

[42] See: https://www.slobodnaevropa.org/a/crna-gora-vlada-srazmjerne-penzije-uvecanje/32965689.html

[43] See: https://www.slobodnaevropa.org/a/crna-gora-vlada-srazmjerne-penzije-uvecanje/32965689.html

[44] Law on Agriculture and Rural Development of Montenegro, „Official Gazette of Montenegro“ 59/2021, https://wapi.gov.me/download-preview/2c7cc916-9aeb-411e-abfb-3a05398500d9?version=1.0

[45] Law on Agriculture and Rural Development of Montenegro, „Official Gazette of Montenegro“ 59/2021, https://wapi.gov.me/download-preview/2c7cc916-9aeb-411e-abfb-3a05398500d9?version=1.0

[46] Social Council of Montenegro, https://www.socsav.me/tripartitni-dijalog/

[47] Social Council of Montenegro, https://www.socsav.me/tripartitni-dijalog/