Hire Employees in North Macedonia

Two routes exist. Registering a Macedonian entity is quick and inexpensive, followed by enrolment with the Public Revenue Office and the social insurance funds.

An Employer of Record removes that setup. The EOR is the legal employer, runs payroll, files the MPIN declaration and remits contributions, while day-to-day direction stays with you.

Engaging someone as a contractor is a third option, but only where the work is genuinely independent — see the risk check further down this page.

North Macedonia is one of the few markets in this dataset where total employer cost equals gross salary. All contributions are calculated on gross and deducted from it. Nothing is added above. The employer’s role is to calculate, withhold and remit — not to fund a separate employer share.

That makes quoting unusually simple: the gross figure in the contract is very close to the total cost of employment, with the statutory holiday allowance the main addition.

One calculator disputes this, stating that employers pay additional contributions from their own funds. Two Macedonian payroll sources state the opposite explicitly — that contributions are already included in the gross amount and are not paid on top of it. Treat gross as total cost and confirm any exception.

Break-even rule of thumb: EOR fees begin to exceed the running cost of a small Macedonian entity somewhere between 15 and 20 employees — later than in most markets, because there is no contribution cost for an entity to save on. Model both — see EOR vs Entity for the framework.

Total contributions are 28% of gross, and they come out of the employee’s pay. There is no separate employer percentage on top.

The split changed on 6 July 2026. The Law amending the Law on Contributions from Compulsory Social Insurance, published in Службен весник 148/2026, set new rates applying from the July 2026 salary payment through the December 2026 salary payment: pension and disability rose from 18.8% to 19.9%, and unemployment insurance fell from 1.2% to 0.1%. Health insurance stayed at 7.5% and the additional work injury contribution at 0.5%.

The total is unchanged at 28% — only the distribution moved. On the minimum wage the net effect was a reduction of one denar, an artefact of rounding rather than a real increase in burden. But the reallocation matters for anyone reconciling fund payments, and it is temporary: the rates apply only through the December 2026 payroll.

Most published calculators still show 18.8% and 1.2%, including some updated as recently as July 2026. Check the split against the current Official Gazette rather than a calculator.

Of the pension contribution, 6% is directed to the mandatory second-pillar fund for anyone born after 1967. Contributions run within a floor of 50% of the average salary and a ceiling of sixteen times it — on the January 2026 average of MKD 69,141, that is roughly MKD 34,571 to MKD 1,106,256 a month.

Gross monthly salaries in denars. Because contributions come out of gross, these figures are close to your total employer cost.

Benchmarks below are gross monthly salaries in denars. Because contributions come out of gross rather than on top, the gross figure is very close to your total employer cost — the main addition is the statutory holiday allowance.

Payroll is monthly and declared to the Public Revenue Office on the MPIN form, which the employer must prepare and submit.

Personal income tax is a flat 10%. The base is gross less social contributions less the monthly personal allowance, which is MKD 10,932 for 2026. One calculator still uses an older allowance of around MKD 9,033.

One calculator publishes a progressive scale that no longer exists — 10% up to MKD 1,080,000 a year and 18% above. Macedonian payroll sources confirm the rate is flat at all income levels. Applying an 18% band would over-withhold substantially from senior staff.

The holiday allowance is a real employer cost above gross. In the private sector it is set at twice the last published average quarterly net salary, and it should be budgeted separately from the salary line.

Recognised cost thresholds for 2026 are MKD 69,141 for sole traders and independent professionals, and MKD 67,951 for corporate tax purposes.

Personal income tax is flat at 10% on gross less contributions less the personal allowance of MKD 10,932 a month. There is no progressive band, despite what some calculators still show.

The Labour Relations Act governs employment, with the minimum wage set under the Minimum Wage Act.

The Minister of Labour and Social Policy publishes the gross minimum wage each March, after an opinion from the Economic and Social Council, and it applies from that month’s payroll. Under Службен весник 63/26 the figure is MKD 38,507 gross, giving MKD 26,046 net, applying from the March 2026 payroll through February 2027. That is an increase of about MKD 1,600 net on the previous MKD 24,379.

Two calculators publish a minimum net wage around 30% below that. One states a minimum gross of roughly MKD 26,000 giving about MKD 18,700 net — apparently treating the net figure as gross — and another gives a minimum net of MKD 18,000. Both would produce unlawful offers.

Part-time pay is calculated proportionately to hours worked.

Written contracts are required and should record pay, hours, leave, notice and termination terms.

Register the employee with the Public Revenue Office and the social insurance funds before the first payroll run, and confirm the contribution base falls within the statutory floor and ceiling.

Check the salary against the current gazetted minimum rather than a published calculator figure, given the discrepancies described above.

The standard week is 40 hours. Overtime, night work and public holiday premiums are set by the Labour Relations Act and applicable collective agreements.

Because contributions come out of gross rather than sitting on top, overtime increases the employee’s contribution and tax deduction as well as their pay — but does not create a separate employer charge.

Employees are entitled to statutory rest periods and paid public holidays.

North Macedonia observes 11 public holidays in 2026 across Orthodox, Muslim and national observances. Where a holiday falls on a Sunday the following Monday is declared non-working — Republic Day on 2 August 2026 falls on a Sunday, so Monday 3 August is the non-working day.

North Macedonia observes 11 paid public holidays in 2026, spanning Orthodox, Muslim and national observances. Where a holiday falls on a Sunday the following Monday is declared non-working. Dates and substitution rules are set out below; entitlement is separate from annual leave.

Social insurance covers pensions and disability, health, unemployment and work injury, all funded from the employee’s 28%.

The pension system has a mandatory second pillar: 6% of the pension contribution is directed to a private fund for anyone born after 1967, with the remainder going to the state scheme.

Health insurance through the FZO covers the employee and family members. The additional 0.5% funds cover for work injury and occupational disease.

The statutory holiday allowance in the private sector is twice the last published average quarterly net salary — a benefit worth budgeting explicitly, since it sits outside the salary line.

Termination follows the Labour Relations Act, with notice and severance requirements scaling by circumstance and length of service.

Final pay including accrued leave is due on separation and must be reflected in the MPIN declaration for the period.

Because contributions are floored at 50% of the average salary, a part-month final payroll still attracts contributions on the statutory floor where the pro-rated figure falls below it.

Collective agreements in some sectors improve on the statutory position and should be checked before notice is served.

Foreign nationals need a work permit and residence permit, both employer-sponsored.

North Macedonia is an EU candidate but is not yet within EU social security coordination, so contribution records from member states do not combine with the Macedonian one.

Foreign employees contribute on the same basis as nationals, within the same floor and ceiling.

Using the pre-July 2026 contribution split is the most immediate error. Pension rose to 19.9% and unemployment fell to 0.1% for payrolls from July through December 2026. Most calculators, including some updated in July 2026, still show 18.8% and 1.2%.

Published minimum wage figures are badly wrong in places. The gazetted minimum is MKD 38,507 gross and MKD 26,046 net; two calculators publish a net around MKD 18,000 to 18,700. An offer built on those would be unlawful.

One calculator applies a repealed progressive tax scale, showing 18% above MKD 90,000 a month. The rate is flat at 10% for all income levels.

Note also that the July 2026 rates expire after the December 2026 payroll, that the personal allowance is MKD 10,932 rather than the older MKD 9,033 some calculators use, and that the statutory holiday allowance sits above gross and is easily omitted from a cost model.

Work backwards from the start date. For a local hire through an EOR, two to three weeks is realistic once the contract is signed and registration with the Public Revenue Office and the funds is complete.

Take the contribution split from the current Official Gazette rather than a calculator, and diarise the reversion after the December 2026 payroll.

Check the salary against the gazetted minimum of MKD 38,507 gross, apply the MKD 10,932 personal allowance, and budget the statutory holiday allowance separately from the salary line.