Payroll and Benefits Guide Macedonia
Last updated: May 10, 2023
Social contributions are fully borne by the employees while the employer is obligated to deduct the contributions on behalf of the employees.
Total Employment Cost
Employee Payroll Contributions
|28.00%||Total Employee Cost|
|18.80%||Pension & Disability Insurance|
|0.50%||Additional Health Insurance|
Employee Income Tax
|10%||Flat tax rate|
The minimum wage in Macedonia is 20,175 MKD per month. The minimum wage may be revised again in April 2023.
MINIMUM WAGE (PER MONTH)
In Macedonia, the payroll frequency is monthly. Work between the first and last day of the month is typically paid on the last day of the month.
13th-month salary payments are common practice in Macedonia. Eligible employees (those that have worked in excess of 150 hours over regular hours and have not been absent from work for more than 21 days during the year) are entitled to an additional salary supplement/bonus payment. This is calculated at the rate of a one-month regular salary and is usually paid at the end of the year.
The standard working week in Macedonia consists of 8 hours a day and 40 hours a week. Sunday has been declared a non-working day for most of the working population in accordance with the 2022 amendments of the Labour Law.
An employer can only demand that an employee work overtime when there is an urgent need, with the overtime being capped at eight hours per week, up to 190 hours a year.
The rate for overtime hours is usually set by a collective agreement and is generally not less than 135.00% of the employee’s standard hourly rate. In addition, employers must pay a bonus if an employee works more than 150 hours of overtime in one year while not being absent for more than 21 days. The bonus amount is one month’s average salary, based on the average salary in North Macedonia (not the employee’s usual monthly salary).
Employees are also entitled to a premium rate for work performed on weekends and holidays. This amount is typically set by collective agreements and is generally 150.00% of the employee’s standard hourly rate.
Paid Time Off
Annual paid time off is dependent on the amount of service the employee has completed.
An employee who has completed up to 5 years’ service is entitled to 20 days paid annual leave per year. This increases by one day every five years of service up to a maximum of 26 days for an employee who has complete more than 30 years of service.
The annual leave may be used in several parts, in agreement with the employer, but one period of the annual leave must be for a minimum of two weeks.
A minimum of 12 days’ leave must be used each year and the rest can carry over. These days should be used by the end of June of the following year unless there is a specific reason and agreement to carry them further.
When certain holidays fall on a weekend, another day is given off in lieu.
Employers are required to pay employees a salary for up to 30 days. After that, health insurance pays the remaining sick leave.
The duration of the sickness determines the sick pay entitlement. For sickness absence of up to 7 working days, the employee will receive 70.00% of their regular salary rate. For up to 15 days sickness this increases to 80.00%, and for over 15 days the entitlement is 90.00%.
Pregnant employees are entitled to nine months (increasing to 15 months for multiple births) of paid maternity leave, paid by social security. The maternity leave can start 45 days before the due date providing an employee can produce a pregnancy certificate up until the mandatory 28 days before the due date.
A female employee who adopts a child is entitled to leave up to the child reaching nine months. If she adopts more than one child (two or more), the employee is entitled to a leave of 15 months.
PAID MATERNITY LEAVE (DAYS)
Fathers are entitled to 7 days of paid paternity leave.
If the female employee does not use her parental leave, the right to parental leave can be used by the father or the child’s adoptive parent.
After the expiry of the pregnancy, childbirth, and maternity leave rights, female employees are entitled to unpaid maternity leave of up to three months until the child reaches three years of age, which can be taken in three parts.
Depending on the collective agreement/employment contract terms, an employee may be allowed additional leave types including:
- Marriage leave: an employee is entitled to up to 3 days leave for marriage
- Bereavement leave: an employee is entitled to up to 7 days of paid bereavement leave for the death of an immediate family member
- Military leave: Employees are entitled to paid leave in cases where the employee has been drafted as a military conscript or in activities related to national defense, protection, and rescue duties.
Employers can terminate a fixed term contract for the following reasons: business, personal, or worker misconduct. This requires notice and a written explanation for the termination. If the reason is misconduct, a warning needs to be given with the employee given a chance to explain his/her actions.
The minimum notice period is 30 days’ unless the parties agree upon a different length, up to a maximum notice period of 3 months. During probation, workers can terminate with 3 days’ notice and the employer can terminate at end of the probation period.
Only required in certain scenarios such as redundancy.
In cases of redundancy, employers should provide:
- up to five years of employment – up to one net salary
- five to ten years of employment – two and a half net salaries
- ten to 15 years of employment – three and a half net salaries
- 15 to 20 years of employment – four and a half net salaries
- 20 to 25 years of employment – six net salaries
- over 25 years of employment – seven net salaries
The basis for calculating the remuneration is the average net salary of the employee in the last six months before the dismissal. This should not be less than 50.00% of the average net salary paid per employee.
The latest amendment of the Labour Law in 2022 has removed the possibility of extending the validity of the employment contract above the age of 64 based on an employee’s statement. According to the latest amendment, all employees who reach the age of 64 must retire, and no further extension of the employment will be possible. Although the amendment removes the possibility of extension of the employment, it does not change the position of the law on pension and disability insurance which enables female employees to opt for retirement at the age of 62. The employment of workers who have already been granted extension until the adoption of the latest amendment will remain valid until 30 June 2022.
Probation is not required but to 4 months maximum can be used.
To employ a foreigner in North Macedonia, the appropriate visa must be approved before any appointment/employment. The most frequently requested types of visas are C Type (Short-Term) Visas.
Depending on the purpose of the visit that is limited to 90 days or less in 180 days to North Macedonia, a foreigner can obtain one of the following visa types:
North Macedonia Touristic Visa: A North Macedonia tourist visa is issued for international tourists planning to visit the country for sightseeing purposes and is the most issued type of visa for North Macedonia. A North Macedonia tourist visa can be obtained through consulates, authorized visa companies, or authorized travel agencies is possible.
North Macedonia Business or Fair Participation Visa: A North Macedonia business visa is a short-term visa required for individuals or groups seeking to attend meetings, training, or business-related fairs without labor or gainful employment.
North Macedonia Short-Term Education or Internship Visa: A North Macedonia short-term education or internship visa is issued for students who intend to study for educational purposes. The applicant must include documents of sufficient means of subsistence, proof of adequate accommodation, and an admission letter from the receiving institution.
D Type (Long-Term) Visa
North Macedonia category D visas are required for stays that exceed three months with varying purposes in North Macedonia even if the applicant’s nationality is on the visa-free list. It is possible to apply for a long-term visa to North Macedonia if you are one of the following:
- A student planning to study at a higher education institution for the purposes of a language course or a long-term internship
- An employee going to work for a North Macedonia-located business or for seasonal employment
- An academic, researcher, or scientist seeking to work in a certified North Macedonia research center
- An individual whose first-degree family member is a North Macedonia citizen
- A patient going to receive long-term medical treatment in a North Macedonian medical institution
- A private entrepreneur who is a founder of a registered legal entity that will provide economic benefit to North Macedonia
The Standard rate of VAT in Macedonia is 18.00%.
Stay up to date on payroll & employment law changes
Sunday has been declared as a non-working day for most of the working population in accordance with the 2022 amendments to the labor law.
The latest amendment of the Labour Law in 2022 has removed the possibility to extend the validity of the employment contract above the age of 64 based on an employee’s statement.
Probation period increased to 6 months form 4 months
Questions & Answers
Payroll and Benefits Guide
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
Public Holidays Calendar
|Monday||Jan-2||New Year's Day||moved from Jan 1st|
|Friday||Jan-6||Orthodox Christmas Eve|
|Saturday||Jan-7||Orthodox Good Friday|
|Friday||Apr-14||Orthodox Good Friday|
|Monday||Apr-17||Orthodox Easter Monday|
|Wednesday||May-24||Sts Cyril and Methodius Day|
|Wednesday||Aug-2||Day of the Republic|
|Monday||Aug-28||Assumption of Mary|
|Monday||Oct-23||Day of the Macedonian Revolutionary Struggle|
|Friday||Dec-8||St. Clement Day|