How to calculate your salary?
The basic gross calculation of effective earnings in Montenegro is done according to the following formula:
gross salary = starting part of the salary + (complexity coefficient × (1 + years of service / 100)) × calculation value of the coefficient
Explanation of the formula components
Calculation value of the coefficient
- Minimum EUR 90 in Montenegro
- A company may (if so defined) increase this amount above EUR 90
Starting part of the salary
- 70% of the calculation value of the coefficient
- Minimum EUR 63
Complexity coefficient
Defined based on the qualification required by the job systematisation:
| Qualification | Coefficient |
|---|---|
| Unskilled worker (NKV) | 1.03 |
| Completed primary education | 1.29 |
| Lower vocational qualification | 1.65 |
| Secondary education (2–3 years) | 2.00 |
| Secondary general and vocational education | 2.27 |
| Level V, master’s exam, specialisation | 2.52 |
| Higher vocational education | 2.88 |
| Higher education | 3.09 |
| Faculty / Bachelor | 3.40 |
| Master’s or equivalent specialisation | 3.71 |
| Doctorate of science | 4.12 |
Years of service
Calculated per started year of service:
- 1–10 years: service × 0.5
- 11–20 years: service × 0.75
- 21+ years: service × 1
Example: 22 years and 4 months of service
- 10 years × 0.5 = 5
- 10 years × 0.75 = 7.5
- 3 years × 1 = 3
- Total years of service factor: 15.5
Example of a complete calculation
Assumptions: complexity coefficient = 3.09, service = 22 years and 4 months (service factor = 15.5)
gross_salary = 63 + (3.09 × (1 + 15.5/100)) × 90
= 63 + (3.09 × 1.155) × 90
= 63 + 3.5689 × 90
= 63 + 321.20
= 384.20 EUR
Net salary: 384.20 / 1.492537 = EUR 257.41
The remainder is employee contributions.
Gross I, gross II and total cost
- Gross I salary = net salary + employee contributions
- The company pays: gross I + employer contributions
The total cost of an employee for the company is higher than the gross I salary — by the amount of employer contributions.
Read more: Obligation to change salary calculation — Salary calculation 2022 “Europe Now” — with an Excel spreadsheet for download.


