Payroll and Benefits Guide - Macedonia

Macedonia
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Currency

Macedonian Denar (MKD)

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Capital

Skopje
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Employer Taxes

0.00%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Macedonia’s capital and largest city is Skopje, which is home to many historical and cultural landmarks.

Macedonia was the birthplace of Alexander the Great, one of history’s most famous military leaders.

The Macedonian language is a South Slavic language and has its own unique alphabet, known as the Cyrillic alphabet.

Macedonia is home to numerous monasteries and religious sites.

Macedonia is known for its colorful traditional costumes.

Macedonia is home to the largest Jewish cemetery in the Balkans.

Macedonia

Contributions

Employee Payroll Tax

Contribution TypeRate
Pension & Disability Insurance18.80%
Health Insurance7.50%
Additional Health Insurance0.50%
Employment Insurance1.20%

Employer Payroll Tax

Contribution TypeRate
Social contributions0.00%

Payroll

Payroll Cycle

The Macedonian payroll cycle lasts for one month. Payment is normally made on the last day of the month for work performed between the first and final days.

13th Salary

In Macedonia, 13th-month wage payments are customary. Employees who meet the requirements (those who have worked more than 150 hours beyond the required number and have not missed more than 21 days of work throughout the year) are eligible to an additional wage supplement or bonus payment. This is often paid at the end of the year and is computed at the rate of one month’s normal wage.

Work Hours and Week

In Macedonia, a typical workweek is made up of 8 hours each day and 40 hours per week. In line with the 2022 revisions to the Labour Law, Sunday has been designated a non-working day for the majority of the working population.

Overtime

Only in cases of extreme necessity may an employer ask an employee to work over the eight-hour weekly maximum and 190-hour annual restriction on overtime.

A collective bargaining agreement often establishes the rate for extra hours, which is typically not less than 135.00% of the employee’s ordinary hourly wage.

Additionally, if an employee clocks more than 150 hours of overtime in a calendar year without taking more than 21 days off, the company is required to pay a bonus. Based on the average monthly wage in North Macedonia, the bonus is equal to one month’s worth of the employee’s regular monthly pay.

Additionally, employees are entitled to overtime pay for labor done on weekends and holidays. It is normally 150.00% of the employee’s basic hourly pay and is regulated by collective bargaining agreements.

Macedonia

Leave

Paid Time Off

The quantity of service the employee has accrued determines how much time off they are entitled to each year.

A worker who has up to five years of service completed is entitled to 20 days of paid yearly leave each year. For an employee who has completed more than 30 years of service, this can grow by one day every five years of service, up to a maximum of 26 days.

In accordance with the employer, the yearly leave may be divided into a number of periods, but at least one of those periods must last for two weeks.

Each year, a minimum of 12 days of leave must be used, with the remaining days being carried over. If not utilized by the end of June the following year, unless there is a specific cause and agreement to extend them, these days must be used by then.

Public Holidays

One day off is substituted for the weekend holiday when it occurs.

Sick Days

Employers must provide salaries to workers for up to 30 days. After then, the remaining sick time is covered by health insurance.

The amount of sick leave you are entitled to depends on how long you were ill. Employees who miss up to 7 working days due to illness are paid at a rate of 70.00% of their usual income. This rises to 80% for up to 15 days of absence, and to 90.00% for more than 15 days.

Maternity Leave

Employees who are pregnant are entitled to a social security-funded nine-month maternity leave (which can increase to 15 months for multiple deliveries). If an employee can provide a pregnancy certificate up until the required 28 days before the due date, the maternity leave can begin 45 days before the due date.

If a woman works there and adopts a kid, she is permitted to quit until the infant is nine months old. The employee is entitled to a 15-month leave of absence if she adopts two or more kids.

Paternity Leave

Seven days of paid paternity leave are given to fathers.

Parental Leave

The father or the child’s adoptive parent may use their right to parental leave if the female employee does not do so.

Female employees are entitled to up to three months of unpaid maternity leave, which can be used in three parts, once their rights to pregnancy, delivery, and maternity leave have expired.

Termination

Termination Process

A fixed-term contract may be terminated by the employer for any of the following grounds: business, personal, or employee misbehavior. This calls for notification and a justification for the termination in writing. If the cause is misbehavior, the employee must be given a warning and the opportunity to defend their actions.

Notice Period

Unless the parties agree to a different duration, the minimum notice term is 30 days, and the maximum notice period is 3 months. Employees on probation may leave with three days’ notice, and an employer may do the same at the conclusion of the probationary period.

Severance Pay

Only necessary under some circumstances, such as redundancy.

When employees are laid off, businesses should provide:

  • Five years maximum of work and one net wage
  • Two and a half net salary during the course of five to ten years of work
  • Three and a half net salary throughout a 10 to fifteen year career
  • Four and a half net salaries throughout 15 to 20 years of employment
  • Twenty to twenty-five years of employment and six net salaries
  • Seven net wages during more than 25 years of work

The employee’s average net wage over the previous six months prior to termination served as the foundation for determining the compensation. A minimum of 50.00% of the typical net salary for each employee should be used.

Probation Period

Probation Period

Although not necessary, probation can be utilized for up to 4 months.

Immigration

Prior to any appointment or job, the proper visa must be issued for the foreigner to be employed in North Macedonia. C Type (Short-Term) Visas are the most often requested sorts of visas.

VAT

The commonly used standard rate of VAT in Macedonia is 18.00%