North Macedonia

North Macedonia PEO & Employer of Record

WeHG provides an International PEO and global Employer of Record service in North Macedonia to companies willing to enter the North Macedonia market or hire local/expat employees in this country.

Traditional approach requires establishing a subsidiary in North Macedonia.  However our solution allows you to start the operations in North Macedonia within days hence save time and money.  WeHG would hire candidates on your behalf while you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf. 

North Macedonia fast facts

Population, million: 2,07

Land area, sq. km: 25,713 km2

Capital: Skopje

Local currency: Macedonian denar (MKD)

Hiring, Negotiating and Doing Business in North Macedonia

Necessity of written employment contract

The employment contract must be in written form. 

The employment contract contains the following elements:
1)    data on the employee and employer, as well as their residence address or registered seat; 
2)    date of work commencement;
3)    title of the job, i.e. data on the type of work, with a brief description of the assignments; 
4)    provisions on the obligation of the employer to inform the employee about the job risks and special professional qualifications, knowledge or necessary special medical supervision, in accordance with the law, specifying the special risks that may be a consequence of the work;
5)    location of the work. If the exact location is not indicated, the employee will be deemed to be performing work at the employer’s head office;
6)    duration of employment, when a contract is concluded for a fixed-term;
7)    provision for full-time or short-term employment;
8)    provision for daily or weekly regular working hours and the distribution of working hours;
9)    provision on the amount of the basic salary, expressed in monetary terms;
10)    provision for other allowances to be provided to the employee;
11)    provision for annual leave, or the manner of determining the annual leave; and
12)    indication of the employer’s general acts that determine the working conditions of the employee.

North Macedonia Employment Contract

North Macedonia working hours

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

Vacation leave in North Macedonia

The employee is entitled to an annual holiday of at least 20 days. 

The annual holiday may be prolonged to 26 days by an employment contract or collective agreement. 

Sick leave: 

Sick pay depends on the duration of the sick leave:
1)    up to 7 days – 70% of the salary;
2)    up to 15 days – 80% of the salary; 
3)    above 15 days – 90% of the salary. 

The employer bears the burden of the sick pay if the employee’s inability to work lasts up to 30 days. Above 30 days, health insurance should calculate the sick leave. 

North Macedonia Maternity Leave

Maternity leave amounts to nine months of continuous work leave during pregnancy, birth, and maternity, and one year of leave for the birth of more than one child (twins, triplets, etc.). Expecting mothers may begin maternity leave as early as 45 days before delivery. New mothers can return to the place of work before the end of the full maternity leave only upon their own consent. Female employees who have adopted a child are entitled to a leave until the child is 9 months old.

Compensations during the maternity leave are covered by the State Fund for Health and Insurance, provided  that  all  social  contributions  have  been  regularly  paid  by  the  employer  prior  to  the maternity leave.

The employer cannot (during the employee’s pregnancy and maternity leave), under any circumstances, terminate the employment contract. In addition, pregnant women and women with children younger than one year may not be asked to work hours longer than those defined in the employment contract. Women with children between the ages of 1 and 3 may only be asked to work overtime upon their written consent.

North Macedonia Severance Laws

The employer may only terminate the employment agreement if:
1)    a valid reason exists related to employee’s behavior (personal reason on the employee’s side),  
2)    the employee breaches the work order, discipline and work obligations (reason of fault);
3)    a valid reason exists related to the employer’s necessity for functioning (business reason).

Employees are entitled to terminate the employment contract by signing a written statement declaring their desire for a termination.

Notice period

From 1 month up to 3 months. The Parties may agree on a notice period longer than 1 month. Nevertheless, the minimal notice period of 1 month is obligatory for all cases, except in specific circumstances (severe breaches of work order and discipline).

North Macedonia Tax

Personal income tax rates

As of 1 January 2020 until 31 December 2022, 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 categorised separately in the legislation. The applicable tax rate on the gains realised from games of chance is 15%.

The taxation of interest on time saving deposits and capital gains realised from sale of securities and shares released from investment funds is postponed until 1 January 2023.

As of 1 January 2023, the tax rates per category of income will be as follows:

Type of income

Annual tax base

Tax rate

  • Employment income.
  • Income from self-employment.
  • Income from royalties and other related rights.
  • Income from sale of own agricultural products.

Up to gross 1,080,000 Macedonian denars (MKD)

10%

Above gross MKD 1,080,000

18% on the difference above MKD 1,080,000

  • Income from intellectual property (IP) rights.
  • Income from lease and sub-lease of movables and immovable property.
  • Income from capital.
  • Capital gains*.
  • Gains from games of chance.
  • Income from insurance.
  • Other income.

Regardless of the amount of realised income 

 0%/10%15%

  • Income whose origin cannot be proved.

The difference between the value of the property and the proved amount of funds for its acquisition.

70%

* As of 1 January 2023, the applicable tax rate on capital gains from sale of securities and shares issued by an investment fund will be :

  • 15% if the taxpayer has owned them up to one year.
  • 10% if the taxpayer has owned them for a period of one to ten years.
  • 0% if the taxpayer has owned them for a period longer than ten years.

 The tax rate on interest from time savings deposits will be 10%.

Social security contributions

The basis for the mandatory social security contributions calculation is the salary and the additional remuneration from employment (including bonuses) as determined in the labour 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 personal income tax (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%.

The Public Revenue Office (PRO) is the authorised body to control the calculation and the payment of compulsory social contributions and PIT on salaries. All employers send their calculations to the PRO that controls them and, if correct, issues a declaration of acceptance that is afterwards presented to the respective depository bank, in order to perform the payment of mandatory social security contributions, PIT, and net salaries.

Additional Benefits in North Macedonia

Supplemental insurance to cover private healthcare is sometimes given as a benefit.

North Macedonia Holidays

  • New Year’s Day
  • Orthodox Christmas Day
  • Labor Day
  • Orthodox Easter Monday
  • Saints Cyril and Methodius Day
  • Ramazan Bajram
  • Day of the Republic
  • Independence Day
  • People’s Uprising Against Fascism Day
  • Day of the Macedonian Revolutionary Struggle
  • St. Clement of Ohrid Day

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.

 

FAQ North Macedonia

  • North Macedonia working hours

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

  • North Macedonia Holidays

    • New Year’s Day
    • Orthodox Christmas Day
    • Labor Day
    • Orthodox Easter Monday
    • Saints Cyril and Methodius Day
    • Ramazan Bajram
    • Day of the Republic
    • Independence Day
    • People’s Uprising Against Fascism Day
    • Day of the Macedonian Revolutionary Struggle
    • St. Clement of Ohrid Day
  • North Macedonia Tax

    As of 1 January 2020 until 31 December 2022, 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 categorised separately in the legislation. The applicable tax rate on the gains realised from games of chance is 15%.

    The taxation of interest on time saving deposits and capital gains realised from sale of securities and shares released from investment funds is postponed until 1 January 2023.

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