Back

Payroll and Benefits Guide Macedonia

Last updated: May 10, 2023

Currency
Macedonian Denar (MKD)
Employer Taxes
Unknown
Payroll Frequency
Monthly
Employee Costs
28%
Capital
Skopje
Date Format
dd/mm/yyyy
Fiscal Year
1 January - 31 December
video poster

Contribution

Employer Employer Payroll Contributions
0.00% Social contributions are fully borne by the employees while the employer is obligated to deduct the contributions on behalf of the employees.
0.00% Total Employment Cost
Employee Employee Payroll Contributions
18.80% Pension & Disability Insurance
7.50% Health Insurance
0.50% Additional Health Insurance
1.20% Employment Insurance
28.00%  Total Employee Cost
Employee Employee Income Tax
  10% Flat tax rate

 

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

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)

Highest
Lowest

Payroll

Payroll Cycle

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 Salary

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.

Working Hours

General

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.

Overtime

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.

Leave

Annual Leave (vacation)

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.

Public Holidays

When certain holidays fall on a weekend, another day is given off in lieu.

Date Day Holiday Notes
1 Jan 2024 Monday New Year’s Day
6 Jan 2024 Saturday Orthodox Christmas Eve
7 Jan 2024 Sunday Orthodox Christmas Day
8 Jan 2024 Monday Orthodox Christmas Day Holiday Day Off in Lieu
19 Jan 2024 Friday Epiphany
10 Apr 2024 Wednesday First Day Ramazan Bayram
1 May 2024 Wednesday Labor Day
3 May 2024 Friday Orthodox Good Friday
6 May 2024 Monday Orthodox Easter Monday
24 May 2024 Friday Sts. Cyril and Methodius
21 Jun 2024 Friday Pentecost
2 Aug 2024 Friday Day of the Republic
28 Aug 2024 Wednesday Assumption of Mary
8 Sep 2024 Sunday Independence Day
9 Sep 2024 Monday Independence Day Holiday Day Off in Lieu
11 Oct 2024 Friday Day of the Revolution
23 Oct 2024 Wednesday Day of the Macedonian Struggle
8 Dec 2024 Sunday St. Clement Day
9 Dec 2024 Monday St. Clement Day Holiday Day Off in Lieu

Sick Days

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%.

Maternity Leave

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.

Paternity Leave

Fathers are entitled to 7 days of paid paternity leave.

Parental 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.

Other Leave

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.
Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

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.

Notice Period

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.

Severance Pay

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 Period

Probation is not required but to 4 months maximum can be used.

VISA

VISA

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

VAT

General

The standard rate of VAT in Macedonia is 18.00%.

Stay up to date on payroll & employment law changes

Version History

May 24, 2022
The minimum wage in Macedonia is now 18,000 MKD net per month.
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.
October 3, 2021
Minimum wage increased to 22,146 MKD per month
Probation period increased to 6 months form 4 months
More

Questions & Answers

Subscribe
Notify of
guest
2 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
André Pietras
André Pietras
3 months ago

How does mileage reimbursement work when using private car for business trip?
Does Macedonia have fixed tax-free per diem travel allowance rates?

Enny Shmurin
Admin
Enny Shmurin
2 months ago

In Macedonia there is a rate for milage reimbursement, however the amount changes once a week and it is announced by the Regulatory Commission.
the rate is 30% of the price of a liter of fuel for each kilometer traveled.
3500MDK is the amount on which there is no income tax, and the rest of the amount is afterwards subject to income tax of 11.11%.

Download this guide to read later

Payroll and Benefits Guide in Macedonia

Download Free Guide

See how Papaya can help you automate your global payroll or EoR whilst staying 100% compliant with local labor laws

The information provided in the Papaya Global Web site is provided for informational purposes only. The materials are general in nature; they are not offered as advice on a particular matter and should not be relied on as such. Use of this Web site does not constitute a legal contract or consulting relationship between Papaya Global and any person or entity. Although every reasonable effort is made to present current and accurate information, Papaya Global makes no guarantees of any kind. Papaya Global reserves the right to change the content of this site at any time without prior notice. Papaya Global is not responsible for any third party material that can be accessed through this Web site. The materials contained on this Web site are the copyrighted property of Papaya Global unless a separate copyright notice is placed on the material. Papaya Global grants each user a non-exclusive, non-transferable license to access and download, display and print one copy of the content of this Web site on a single computer solely for internal, business use, provided that the user does not modify the site content in any way and that all copyright and other notices displayed on the site content are retained. Other reproduction, distribution, republication and re-transmission of materials contained within this Web site require Papaya Global’s prior permission.
Download this guide to read later

Payroll and Benefits Guide
in Macedonia

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

Download free guide
All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

Macedonia
Download:
CSV
PDF
ICS
Date Day Holiday Notes
1 Jan 2024 Monday New Year’s Day
6 Jan 2024 Saturday Orthodox Christmas Eve
7 Jan 2024 Sunday Orthodox Christmas Day
8 Jan 2024 Monday Orthodox Christmas Day Holiday Day Off in Lieu
19 Jan 2024 Friday Epiphany
10 Apr 2024 Wednesday First Day Ramazan Bayram
1 May 2024 Wednesday Labor Day
3 May 2024 Friday Orthodox Good Friday
6 May 2024 Monday Orthodox Easter Monday
24 May 2024 Friday Sts. Cyril and Methodius
21 Jun 2024 Friday Pentecost
2 Aug 2024 Friday Day of the Republic
28 Aug 2024 Wednesday Assumption of Mary
8 Sep 2024 Sunday Independence Day
9 Sep 2024 Monday Independence Day Holiday Day Off in Lieu
11 Oct 2024 Friday Day of the Revolution
23 Oct 2024 Wednesday Day of the Macedonian Struggle
8 Dec 2024 Sunday St. Clement Day
9 Dec 2024 Monday St. Clement Day Holiday Day Off in Lieu