Employer of Record in North Macedonia

Hiring in North Macedonia for the first time can be overwhelming, especially when navigating unfamiliar employment laws. Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success. Playroll’s comprehensive guide can help you get started if you're hiring locally or relocating a team member.

Companies can hire employees in North Macedonia in the following three ways:

• Setting up a local entity. Entity establishment reduces risk exposure and enables direct hiring, but can be costly and time-consuming – making it less practical for companies seeking quick and flexible solutions for hiring in North Macedonia.
• Partnering with an Employer Of Record. An EOR, like Playroll, is a third-party entity that serves as the legal employer of your international workforce which hires, pays, and manages compliance with North Macedonia’s labor laws and tax regulations.
• Hiring independent contractors. Hiring contractors gives companies a flexible, affordable alternative to hiring local employees, though it involves unique misclassification risks.

Businesses can only operate smoothly in North Macedonia if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in North Macedonia below, to avoid any compliance issues.

Employment Contract Requirements

In North Macedonia, employment contracts can be either indefinite or definite, with the latter not exceeding a duration of 5 years. Regardless of the type, the agreement must be documented in writing and should include the following information:

• Identification of both parties
• Starting date (and duration for temporary contracts)
• Workplace, working hours, and distribution
• Job description, duties, and responsibilities
• Provisions on job risks disclosed by employer
• Basic salary (including allowance and benefits)
• Leave regulations
• Probation period (if applicable)
• Reference to regulations on employment conditions

Onboarding Process

We can help you get a new employee started in North Macedonia quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.

For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in North Macedonia

In North Macedonia, the standard workweek is 8 hours per day and 40 hours per week. Sunday is now a non-working day for most workers according to the 2022 Labour Law amendments.

Overtime in North Macedonia

Overtime in North Macedonia is authorised in urgent situations, capped at 8 hours per week (190 hours annually). The rate, established by the collective agreement, is not less than 135% of the standard hourly rate. Employees exceeding 150 hours yearly without more than 21 days of absence are entitled to bonuses.

Probation Period in North Macedonia

In North Macedonia, there is no mandatory probation period, but a maximum period of 4 months can be implemented if necessary.

Fiscal Year in North Macedonia

1 January - 31 December is the 12-month accounting period that businesses in North Macedonia use for financial and tax reporting purposes.

Payroll Cycle in North Macedonia

The payroll cycle in North Macedonia is usually monthly, with employees being paid on the last day of the month.

Minimum Wage in North Macedonia

The minimum wage for employees in North Macedonia is typically 126.09 MKD per hour, amounting to ~20,175 MKD per month for a typical 40 hour work week.

Bonus Payments in North Macedonia

In Macedonia, it is customary to receive a 13-month salary. To qualify, an employee must have worked over 150 hours beyond regular hours and not been absent for more than 21 days. The payment is equivalent to one month's salary and is provided at the end of the year.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 0% on top of the employee salary in North Macedonia.

Employee Payroll Tax Contributions

In North Macedonia , the typical estimation for employee payroll contributions cost is around 28.%.

Individual Income Tax Contributions

Income tax in North Macedonia follows a progressive rate structure, with various factors like household status and the number of children potentially influencing the overall tax rates.

Pension in North Macedonia

In North Macedonia, the retirement age is 64 for men and 62 for women, with a minimum of 15 years of pension service. Employers must terminate the employment contract at retirement age. The pension system includes Mandatory Pension and Disability Insurance, Mandatory and Voluntary Fully-Funded Pension Insurance, and the Family Survivor's Pension.

Mandatory Leave Entitlement in North Macedonia

The annual leave entitlement in North Macedonia is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In North Macedonia

North Macedonia observes 11 national holidays in a calendar year:

Paid Time Off in North Macedonia

In North Macedonia, employees accrue 20 days of annual paid leave after 5 years, with an additional day granted for every extra 5 years, reaching a maximum of 26 days after 30 years of service. The leave can be taken in mutually agreed segments, with one period lasting at least 2 weeks.

Maternity Leave In North Macedonia

In North Macedonia, pregnant employees are entitled to 9 months of paid maternity leave (extended to 15 months for multiple births), covered by Social Security. The leave can commence 45 days before the due date, provided a pregnancy certificate is submitted to the employer, and concludes up to 28 days before the due date.

Paternity Leave In North Macedonia

Fathers in North Macedonia are entitled to 7 days of paid paternity leave.

Sick Leave In North Macedonia

In North Macedonia, sick pay varies based on the duration of sickness. For absences up to 7 working days, employees receive 70% of their regular salary rate. This increases to 80% for up to 15 days and 90% for periods exceeding 15 days. Employers cover sick leave for up to 30 days, with the Health Insurance taking over for the remaining days.

Parental Leave In North Macedonia

In North Macedonia, if the female employee does not use parental leave, it can be utilised by the father or the child's adoptive parent. Following pregnancy, childbirth, and maternity leave benefits, female employees are eligible for unpaid maternity leave lasting up to 3 months, until the child turns 3 years old. This leave can be taken in three parts.

Marriage Leave

An employee in North Macedonia is entitled to up to 3 days of paid leave for marriage.

Bereavement Leave

An employee in North Macedonia is entitled to up to 7 days of paid bereavement leave following the death of an immediate family member.

Termination Process in North Macedonia

In North Macedonia, employers cannot terminate employment at-will; terminations must be justified with just cause. Compliant terminations include:

• Voluntary employee resignation
• Mutual agreement
• Unilateral decision by employer (based on probation period, objective reasons, disciplinary dismissal, or unsuitability for job)
• Contract expiration

Notice Period in North Macedonia

In North Macedonia, the minimum notice period is 30 days, unless otherwise agreed, with a maximum of 3 months. During the probation period, employees can terminate with 3 days' notice, and employers can terminate at the end of the probation period.

Severance in North Macedonia

In North Macedonia, all employees facing redundancy are entitled to severance pay, with the amount varying based on the length of service:

• 5 years of service: up to 1 net salary
• 5-10 years of service: two and a half net salaries
• 10-15 years of service: three and a half net salaries
• 15-20 years of service: four and a half net salaries
• 20-25 years of service: six net salaries
• More than 25 years of service: seven net salaries