20 Types of Employee Income Exempt from Personal Income Tax

Tax reliefs are not just “dry numbers on paper” – they are a tool for employers to motivate employees, and for employees, they provide security and support in important life situations. When used properly, tax reliefs can create a healthier and more stimulating work environment.

Below is an overview of 20 types of employee income exempt from personal income tax in Montenegro, which employers can use as an additional benefit for their teams.

LIST OF TAX-EXEMPT INCOME

1. Daily allowance for business travel within Montenegro – up to 18.00€
2. Daily allowance for business travel abroad – according to the amounts applicable to state budget users
3. Field allowance – up to 100.00€ per month (if accommodation and meals are not provided)
4. Separation allowance – up to 100.00€ per month
5. Solidarity assistance – up to 1,500.00€ in case of death of an employee or family member; up to 1,000.00€ in case of medical treatment of an employee or family member
6. Retirement severance – up to 1,500.00€
7. Severance pay due to redundancy – up to three average salaries in Montenegro
8. Scholarships and education loans – up to 300.00€ per month
9. Childbirth allowance – up to 1,000.00€
10. Awards for pupils and students – for achievements and support in education
11. Education expenses for employees – if the education is related to the employer’s business activity
12. Meal allowance for amateur athletes – up to 600.00€ per month
13. Unemployment benefits – paid from extra-budgetary funds
14. Compensation for work injury or occupational disease – according to a court decision or settlement
15. Trade union social assistance – from union membership fees
16. Gifts for employees’ children – up to 50.00€ per year per child under 15
17. Jubilee awards – 150.00€ for 10 years of service, 250.00€ for 20 years of service, etc.
18. Allowances for members of the Army of Montenegro and international missions – up to the amount prescribed by Government decision
19. Lifetime allowances for athletes and cultural creators – tax exempt under special laws
20. Allowance for International Women’s Day – up to €100.00 per year

These tax benefits are not intended merely as a formality but as genuine support for employees and a tool for employers to improve the work environment.

When used properly, everyone benefits – both employers and employees.