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Hiring in North Macedonia

Hiring employees compliantly in North Macedonia means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in North Macedonia so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in North Macedonia; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Need assistance hiring in North Macedonia? Contact us about our International  EOR Service

Labor Laws in North Macedonia

Employee Probation Period

  • Probationary period is up to 6 months

Annual Leave in North Macedonia

  • Employees are generally entitled to 20 to 26 days of paid annual leave, and up to an additional seven for marriage, bereavement, or professional examinations.
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Holidays in North Macedonia

New Year’s Day 1st January
Orthodox Christmas Day 7th January
Orthodox Easter Monday 20th April
Labor Day 1st May
Eid al-Fitr  
Saints Cyril and Methodius Day 24th May
Republic Day 2nd August
Independence Day 8t September
People's Uprising against Fascism Day 11th October
Day of the Macedonian Revolutionary Struggle (Republic of Macedonia) 23rd October
St. Kliment Ohridski's Day 8th December

 

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Maternity Leave North Macedonia

  • Female employees are generally entitled to 9 months of paid maternity leave
  • This increases to 1 year in case of multiple births

Paternity Leave North Macedonia

Fathers may take up to seven days of paid paternity leave if the mother does not take her maternity leave.

Sick Leave in North Macedonia

In case of an employee's inability to work due to illness or injury, the employer is entitled to pay salary remuneration for the first 30 days of illness.

Working Hours in North Macedonia

The general work week in Macedonia is 40 hours, with five, eight-hour days.

Overtime in North Macedonia

  • Overtime work may not exceed 8 hours weekly and 190 hours annually.
  • Overtime work within a period of 3 months shall not exceed in average 8 hours a week.

Termination of Employment in North Macedonia

Justifiable grounds include:

  • The employee not fulfilling working obligations/duties (even after a written warning);
  • The employee violating the work discipline/order (even after written warning);
  • The employee disregarding employer’s working hours;
  • The employee fails to request leave of absence or notify about sick leave or misuses sick leave;
  • The employee is in breach of confidentiality agreement; and
  • Economic, technological, or structural transformations of the employer’s organization.

 

Notice Period in North Macedonia

  • Notice period is as follows:
    • 3 working days during probation period
    • 30 days when an employer terminates an indefinite term contract
    • 30 days when an employee terminates an employment contract

Severance in North Macedonia

  • Employers are generally entitled to the following severance pay: -
    • 1 month’s salary after up to 5 years of employment
    • 2 month’s salary after 5 to 10 years of employment
    • 3 month’s salary after 10 to 15 years of employment
    • 4 month’s salary after 15 to 20 years of employment
    • 5 month’s salary after 20 to 25 years of employment
    • 6 month’s salary after 25 years of employment

North Macedonia Salary and Wages

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13th / 14th Month Salary in North Macedonia

There is no statutory requirement to pay the 13th or 14th month salary.
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Income Tax in North Macedonia

  • Taxation of individuals’ income in North Macedonia is based on their residence status.
  • Macedonian tax residents are taxed on their worldwide income.
  • Non-residents are taxed on their income derived in the Macedonian territory.
  • As of 1 January 2023 onwards, a 10% flat tax rate is applicable on individual's income from work, self-employment income, income from royalties and industrial property rights, income from sale of own agricultural products, rental income, income from capital, capital gains, and insurance income, as well as other taxable income not categorized separately in the legislation.
  • As of 1 January 2023, the tax rates per category of income will be as follows:

Type of income

Tax rate

  • Employment income.
  • Income from self-employment.
  • Income from royalties and other related rights.
  • Income from sale of own agricultural products.
  • Income from Intellectual Property (IP) rights
  • Income from lease and sub lease of movable and immovable property
  • Income from capital
  • Income from insurance

10%

 

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Social Security in North Macedonia

  • The basis for the mandatory social security contributions calculation is the salary and the additional remuneration from employment (including bonuses) as determined in the labor legislation.
  • The law also sets the minimal base for payment of social security contributions on salary and bonuses, which on a monthly basis is 50% of the average salary paid in North Macedonia.
  • The highest base for payment of mandatory social security contributions on a monthly basis is 16 average salaries paid in North Macedonia. 
  • No social contributions are due on the difference above this threshold.
  • Calculation and payment of all the employees’ social contributions is regulated under the Law on Mandatory Social Insurance Contributions.
  • Employers are obligated to calculate, withhold from employees’ gross salary, and pay into the accounts of respective funds the compulsory social contributions and PIT. 
  • The current level of the compulsory social contributions on gross salary is as follows:
  • Pension and disability insurance: 18.8%.
  • Health insurance: 7.5%.
  • Employment insurance: 1.2%.
  • Additional health insurance: 0.5%.

Contribution

Group 1083

Pension and disability insurance

Health insurance

Employment insurance

Additional health insurance

Employee Group 1083 - - - -
Employer Group 1083 18.8% 7.5% 1.2% 0.5%

Immigration North Macedonia

  • Under North Macedonian law, foreign nationals may request a temporary visa for touristic, business, personal and other purposes.
  • The duration of the temporary visa is usually up to one year
  • The reciprocity principle in international relations is considered in evaluating applications for work and residence permits.
  • Apart from reciprocity criteria, only domestic economic problems may cause difficulties in the obtaining of work and residence permits.
  • North Macedonian law provides for the following types of working visas:
    • Self-employment visas, which are issued for a period of one year or three years or as permanent visas.
    • Permanent visas may be issued to members of families in the RNM, foreign citizens from humanitarian programs or foreign individuals granted asylum.
    • Employment visas, which are issued for up to one year. 
    • Work permits, which have a duration that depends on the nature of the work.
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Type of Visa/Permit

Documentation

Validity

Eligibility

Tourist Visa
  • Valid passport
  • Passport size photographs
  • Completed application form
Up to 1 year
  • Foreigners who want to visit North Macedonia for tourism purposes must obtain a tourist visa
Business Visa
  • Valid passport
  • Passport size photographs
  • Completed application form
  • Invitation letter
Up to 1 year

  • Foreigners who want to visit North Macedonia for business purposes must obtain a business visa
Employment Visa
  • A temporary residence application form
  • A valid passport
  • One passport-sized photograph
  • Proof of the applicant’s health insurance
  • A copy of the applicant’s work permit application, which should be provided by the employer
Up to 1 year
  • Foreigners seeking employment in North Macedonia must obtain an Employment Visa
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Value Added Tax (VAT) in North Macedonia

  • The standard VAT rate is 18%. 
  • This rate applies to overall turnover and imports of goods and services. 
  • A lower (i.e. preferential) rate of 5% applies to supplies of certain goods and services.
  • Starting from 01 January 2023, the preferential rate of 10% will be applied.
  • A reduced rate of 10% applies to consumption of food and beverages (alcohol excluded) “on the spot” and catering services.
  • Exports are zero-rated.

VAT

Standard Rate

Group 1083

18%

Reduced Rate Group 1083 10%
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Mandatory Benefits in North Macedonia

  • These are mandatory benefits as postulated by law
  • These include probationary period, annual leave, public holidays, sick leave, maternity leave, paternity leave, overtime pay, notice period, and severance pay
  • Statutory benefits also include social security benefits
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Mandatory Benefits overview

  • Probationary period

  • Annual Leave

  • Public Holidays

  • Maternity Leave

  • Paternity Leave

  • Sick Leave

  • Overtime Pay

  • Notice Period

  • Severance Pay

  • Social Security Benefits

Payments And Invoicing

  • The tax year is the calendar year.
  • As per the new PIT Law, taxpayers are no longer required to prepare and file the annual tax return (form PDD-GDP).
  • Instead, the PRO undertook the obligation to prepare the annual tax return based on the electronic fillings made during the year by the companies and the taxpayers elaborated in description of Payment of tax below.
  • The PRO would deliver to each taxpayer the draft annual tax return for the calendar year by 30 April of the following year.
  • Within the next month (until 31 May), the taxpayer should confirm the correctness of the data included in the draft return or make appropriate corrections.
  • If the taxpayer neither confirms nor corrects the prepared return by the PRO, the draft tax return would be deemed as final.
  • In case the PRO cannot confirm the corrected annual tax return by the taxpayer, the tax would be determined by way of a Tax Assessment Form issued by the tax authorities.
  • Individuals who realize business income and keep accounting records submit annual accounts and annual tax return by 15 March of the following year for the previous calendar year.
  • Under the new PIT Law, all taxable income should be reported and PIT paid in advance. Before payment of any taxable income to individuals, taxpayers that are domestic companies and domestic taxpayers that keep accounting records are obligated to calculate, withhold, and pay PIT on behalf of the individuals.
  • These taxpayers should electronically file a calculation for the income payable to the individual and the PIT due to the PRO for approval.
  • The PRO confirms the calculation, following which the payment of income and PIT could be made at the banks.

Payroll Accrual in North Macedonia

Country Accruals Additional Information

Description Uses US guidelines
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Payroll Accruals Additional Information

 

 

Employment Accruals

Annual Leave Employees are generally entitled to 20 to 26 days of paid annual leave, This equals 7.12% (26/365 days) of annual income
Maternity Leave Female employees are generally entitled to 9 months of paid maternity leave. This equals 75% (9/12 months) of annual income
Paternity Leave Fathers may take up to seven days of paid paternity leave if the mother does not take her maternity leave. This equals 1.92% (7/365 days) of annual income
Sick Leave In case of an employee's inability to work due to illness or injury, the employer is entitled to pay salary remuneration for the first 30 days of illness. This equals 8.22% (30/365 days) of annual income
Severance Employers are generally supposed to find terminated employees new employment, pay for training, or provide a severance payment of one month’s salary for each two years’ service, up to 12 months’ of wages. This equals 8.33% (1/12 months) of annual income
Social Security Employers are obligated to calculate, withhold from employees’ gross salary, and pay into the accounts of respective funds the compulsory social contributions and PIT.
The current level of the compulsory social contributions on gross salary is as follows:
  • Pension and disability insurance: 18.8%.
  • Health insurance: 7.5%.
  • Employment insurance: 1.2%.
  • Additional health insurance: 0.5%.
This equals 28% of annual income.

Accrued Benefits in North Macedonia

Christmas Bonus % 0%
Christmas Bonus Over Vacations % 0%
Severance per Year%

Employees are entitled to severance pay equal to one month's pay after completion of one year of employment (8.33% of annual salary)

8.33% of annual salary
Vacations %

Employees are normally entitled to 20 days of annual holiday leave each year (5.49% of annual salary)

5.49%
Of annual
salary
Notice %

Employees are entitled to a 1 month of notice period for one year of service or more (8.33%)

8.33%
Christmas Bonus Over Notifications % 0%
Vacations Plus % 0%

Total percentage of Salary (yearly)

The total employment accruals as a percentage of salary per anum are equal to 22.15%

22.15%

Why use Global Expansion to hire in North Macedonia

Establishing a branch office or subsidiary in North Macedonia can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because North Macedonia labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by North Macedonia law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into North Macedonia. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our North Macedonia Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.

 

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