Montenegro is preparing legislation to introduce permanent seasonal employment from the 2027 tourism season, aiming to address a shortage of up to 25,000 workers and help hotels, restaurants and other tourism businesses retain experienced staff between seasons.
The proposed framework would establish a formal employment status for workers who are employed intensively during the tourist season but maintain their relationship with the same employer throughout the rest of the year.
Under the current proposal, employers would continue paying social-insurance contributions during the off-season, while the government would provide workers with an allowance of approximately €108. The legislation is expected to be adopted before the end of 2026, subject to the completion of parliamentary procedures, allowing the new system to become operational during the 2027 summer season.
Employers Seek Changes to the Cost-Sharing Model
Tourism businesses have broadly supported the initiative but are calling for adjustments to the proposed financial arrangements. Employers argue that continuing to pay social-insurance contributions during months with little or no tourism revenue could create a significant additional burden, particularly for smaller hotels, restaurants and seasonal operators.
The financial implications are especially relevant for coastal businesses that reduce operations substantially during winter or close entirely outside the main tourist season. Under those circumstances, maintaining contributions for seasonal employees could become a considerable fixed cost.
The proposed €108 off-season allowance would provide workers with financial support, although it would not replace a regular wage. The effectiveness of the scheme will depend on whether seasonal earnings, government assistance and continued social-insurance coverage provide sufficient incentives for employees to remain in the domestic labour market.
Foreign Recruitment Remains Central to Tourism Staffing
Montenegro’s tourism and hospitality industries face an estimated shortage of 20,000 to 25,000 seasonal workers. To address the gap, the country has increasingly relied on foreign labour. The government established a quota of nearly 29,000 temporary residence and employment permits for foreign workers in 2026, reflecting the sector’s dependence on employees recruited from abroad.
Although foreign recruitment allows tourism businesses to meet staffing requirements, it generates additional recruitment, accommodation and administrative costs. Employers must also frequently train new personnel at the beginning of each season, contributing to staff turnover and making consistent service quality more difficult to maintain.
Permanent seasonal employment could encourage workers to return to the same employer, allowing businesses to retain accumulated experience and preserve service standards. For higher-end hotels and resorts, workforce continuity is particularly important because service quality directly affects pricing and customer reviews.
Extending the Tourism Season Could Support Year-Round Employment
The employment reform forms part of a broader effort to extend Montenegro’s tourism season. More year-round flights, conferences, wellness tourism and cultural events could gradually reduce the number of months during which tourism workers remain inactive.
Mountain tourism offers another potential source of employment, although winter operations continue to depend on snowfall and the availability of ski infrastructure. Creating more year-round tourism jobs would help address the underlying challenge of seasonal inactivity. The proposed employment framework is intended to improve labour-market stability, while a longer operating season could provide businesses with more opportunities to retain staff and generate revenue throughout the year.
Labour Costs and Business Competitiveness
For tourism operators, the main concern remains the additional cost of maintaining employment relationships outside the peak season. Hotels are already facing pressure from wages, food prices, energy and maintenance expenses.
If permanent seasonal employment is introduced alongside higher minimum wages, labour costs could rise further. The government will therefore need to balance worker protection and employment stability with the competitiveness of tourism, one of Montenegro’s main sources of foreign revenue.
A successful framework could reduce businesses’ dependence on repeated seasonal recruitment and training. However, if the cost of retaining employees proves too high, employers may continue to favour temporary foreign workers and shorter-term contracts.
