Guide to employment, payroll and benefits in

North Macedonia

Rivermate offers complete payroll, benefits and compliance services for

North Macedonia

01. Overview

Last updated: 

August 19, 2021

Currency
Macedonian Denar
Capital
Skopje
Ease of doing business
80.7
Language
Macedonian
Population
2083374
GDP growth
0.24%

02. Grow your team in

North Macedonia

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

North Macedonia

, particularly if you don't have established local relationships. You can hire employees in

North Macedonia

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

North Macedonia is a country in Southeast Europe that is officially known as the Republic of North Macedonia. As one of Yugoslavia's successor states, it achieved independence in 1991. North Macedonia is a landlocked nation bordered on the northwest by Kosovo, the north by Serbia, the east by Bulgaria, the south by Greece, and the west by Albania. It makes up roughly the northern third of Macedonia's broader geographical area. Skopje, the country's capital and largest city, is home to a quarter of the country's population of 2.06 million people. The ethnic Macedonians, a South Slavic people, make up the bulk of the population. Albanians make up about 25% of the population, followed by Turks, Romanis, Serbs, Bosniaks, and Aromanians. The kingdom of Paeonia, a hybrid Thraco-Illyrian polity, is where the region's history begins. The Persian Achaemenid Empire conquered the area in the late sixth century BC, and it was later absorbed into the kingdom of Macedonia in the fourth century BC. In the second century BC, the Romans invaded the area and incorporated it into the larger province of Macedonia. Beginning in the sixth century of the Christian period, Slavic tribes invaded and settled in the region, which remained part of the Byzantine Empire. Following centuries of conflict between the Bulgarian, Byzantine, and Serbian Empires, it was part of Ottoman dominion from the mid-14th century until the early twentieth century, when the modern region of North Macedonia fell under Serbian rule following the Balkan Wars of 1912 and 1913. It was governed by Bulgaria during World War I, but after the war, it was returned to Serbian rule as part of the newly established Kingdom of Serbs, Croats, and Slovenes. It was administered by Bulgaria again during WWII, and in 1945 it became a constituent state of communist Yugoslavia, where it remained until its peaceful secession in 1991. In April 1993, the country was admitted to the United Nations, but due to a dispute with Greece over the name "Macedonia," it was given the provisional designation "the former Yugoslav Republic of Macedonia." Macedonia and Greece settled their dispute in June 2018, agreeing to change the country's name to "Republic of North Macedonia." This renaming took place in February of this year. North Macedonia is a member of the United Nations, NATO, the Council of Europe, the World Bank, the OSCE, CEFTA, BSEC, and the World Trade Organization. It has also been a candidate for membership of the European Union since 2005. North Macedonia is a high-income country that has undergone significant economic change in order to build an open economy since independence. North Macedonia is a developing nation that offers social security, universal health care, and free primary and secondary education to its residents, ranking 82nd on the Human Development Index.

04. Public holidays

05. Types of leave

Paid time off

Employees are entitled to at least 20 days of paid annual leave, which is sometimes increased to up to 26 days by contract or collective bargaining agreement. Employees typically earn one additional day of annual leave for every five years of employment, up to a maximum of 26 days for employees with 30 or more years of employment.

Public holidays

New Year’s DayOrthodox ChristmasOrthodox Easter MondayLabor DayRamadan Bajram (Eid al-Fitr)Saints Cyril and Methodius DayRepublic DayIndependence DayDay of the Macedonian UprisingDay of the North Macedonian Revolutionary StruggleSt. Clement of Ohrid Day

Sick days

Employees are entitled to unlimited sick leave, with the first 30 days of illness covered by the company. Collective bargaining usually determines the rate of sick pay. The employer pays 70% of the average North Macedonian salary for the first seven days, 80% for days eight through 15, and 90% for days 16 through 30 under the private sector agreement.If the employee is sick for more than 30 days, they may be eligible for social security benefits. In the event of a long-term sickness, the employee should present a medical certificate, and additional exams may be necessary.

Maternity leave

Employees are entitled to nine months of paid maternity leave, or fifteen months if they have several children. Before commencing her leave, the pregnant mother must produce a medical document confirming her pregnancy and must tell her employer of her intention to start and terminate her maternity leave. This notification must be given at least 30 days prior to the start of her leave. This notification must be given at least 30 days prior to the start of her leave. She can return to work 45 days after the birth of her kid at the earliest.A woman who adopts a child is entitled to nine months of maternity leave until the kid reaches the age of nine months, or fifteen months if she adopts several children. In general, a woman who adopts a child is entitled to paid leave throughout the period during which the youngster adjusts to life with the adoptive family.Social security pays a woman on maternity leave 100 percent of her wages. Following maternity leave, the mother is entitled to three months of unpaid leave to care for her child until the kid reaches the age of three. A woman on maternity leave has the right to return to her employment or, if that is not feasible, to another acceptable post following the leave.

Paternity leave

The father of a baby is entitled to up to seven days of paid leave for the birth. In addition, if the mother does not use part of the maternity leave to which she is entitled, the father may use that time.

Parental leave

North Macedonia does not have a national parental leave.

Other leave

06. Employment termination

Termination process

Employers may terminate an employee only for misconduct or a violation of workplace duties or standards, or for business reasons. Prior to terminating an employee for misconduct, the employer must warn and inform the employee of the prospect of dismissal if the misconduct continues. A minimum of 15 days must be provided to the employee to improve.


The employer and employee may agree to waive the notice period in exchange for a payment. Additionally, an employer may dismiss an employee without notice if the employee is absent from work for more than three days without permission, abuses sick leave, violates a health or safety regulation regarding fire or dangerous substances, is intoxicated at work or possesses alcohol or narcotics at work, steals from the employer, damages the employer's property, or falsely discloses information to the employer.


Employees who intend to resign must provide their employer one month's written notice. There is no requirement for an explanation or extra information. A longer notice period may be specified in an employment contract or collective bargaining agreement, although it cannot exceed three months. When an employer fails to pay an employee on time or pays less than the employee is entitled to, fails to provide adequate safety protections, fails to treat employees equally on the basis of gender, or commits certain other serious breaches of employee obligations, the employee may notify the employer in writing of the breach and, after three days, may terminate employment. The employee is entitled to severance pay and any unpaid income in this case.

Notice period

When terminating an employee on an indefinite contract, the employer is required to provide one month's written notice, which must include the reason for the termination and advise the employee of his or her legal rights and eligibility for unemployment insurance. Seasonal employees may be terminated with seven days' written notice, while probationary employees may be terminated with three working days' notice.

Severance pay

Severance pay is payable to employees terminated in a collective dismissal. It is calculated based on an employee's length of service and ranges between one and six months of salary.

Probation period

In North Macedonia, the typical probationary period is 180 days or six months.

07. Working hours

General

In North Macedonia, the standard work week is 40 hours spread over five days.

Overtime

Employers may require an employee to work overtime only in the event of an emergency, and overtime is limited to eight hours per week, or 190 hours per year. Overtime pay is typically determined by collective bargaining and is generally not less than 135% of the employee's standard hourly rate.


Additionally, employers must compensate employees who work more than 150 hours of overtime in a calendar year without missing more than 21 days. The bonus is equal to one month's average salary in North Macedonia (not the employee's regular monthly salary).


Employees are also entitled to a premium for weekend and holiday work. This amount is also typically determined through collective bargaining and is typically set at 150 percent of the employee's standard hourly rate.

08. Minimum wage

General

Since June 2021, the national minimum wage in North Macedonia has been set at 359 € per month, or 4,308 euros per year when 12 payments are made each year.

09. Employee benefits

General

In North Macedonia, healthcare is available to all citizens. Although businesses are not obliged to pay to national healthcare, several do in order to offer health insurance coverage for their workers. Private healthcare providers are available in North Macedonia, and some people have private health insurance.

You must provide health insurance, disability insurance, unemployment insurance, and disability contributions for your employees:

Pension and disability insurance: 18.8 percent of income

Health Insurance Fund: 7.5 percent of income

Unemployment fund: 1.2 percent of income

Disability: 0.5 percent of income

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

North Macedonia

to hire a team takes time, money, and effort. The labor law in

North Macedonia

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

North Macedonia

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

North Macedonia

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

North Macedonia

via our Employer of Record / PEO solution.

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