Rivermate | North Macedonia flag

North Macedonia

499 EUR per employee per month

Discover everything you need to know about North Macedonia

Hire in North Macedonia at a glance

Here ares some key facts regarding hiring in North Macedonia

Macedonian Denar
GDP growth
GDP world share
Payroll frequency
Working hours
40 hours/week

Overview in North Macedonia

Read more

North Macedonia, a landlocked country in the central Balkan Peninsula, is bordered by Greece, Albania, Bulgaria, Kosovo, and Serbia. It has a mountainous landscape with the Vardar River as a significant feature and experiences a continental and Mediterranean climate. Historically, the region has been inhabited since ancient times, transitioning through Roman rule, Middle Ages dominions, Ottoman rule, and being part of Yugoslavia before declaring independence in 1991. The Prespa Agreement in 2018 resolved a naming dispute with Greece, allowing its accession to NATO in 2020 and advancing its EU candidacy.

The population of approximately 2 million is predominantly ethnic Macedonians with Albanians as the largest minority. Classified as an upper-middle-income country, North Macedonia has a service-oriented economy with growing industrial and agricultural sectors. Challenges include unemployment, emigration, and regional disparities. The country aims for EU membership, with a workforce characterized by a gender participation gap and a trend towards an aging population.

Education has improved, but aligning skills with labor market demands remains a challenge. The service sector is the largest employer, followed by significant contributions from industry, particularly in textiles, food processing, and chemicals. Agriculture, though smaller in GDP contribution, is vital in rural employment.

Cultural norms influence work-life balance, communication, and organizational hierarchies, emphasizing family, direct communication, and respect for authority. The economy is bolstered by traditional sectors like agriculture and industry, with emerging sectors such as ICT, tourism, and renewable energy showing growth potential.

Rivermate | bulb icon

Get a payroll calculation for North Macedonia

Understand what the employment costs are that you have to consider when hiring North Macedonia

Employer of Record in North Macedonia

Rivermate is a global Employer of Record company that helps you hire employees in North Macedonia without the need to set up a legal entity. We act as the Employer of Record for your employees in North Macedonia, taking care of all the legal and compliance aspects of employment, so you can focus on growing your business.

How does it work?

When you hire employees in North Macedonia through Rivermate, we become the legal employer of your staff. This means that we take on all the responsibilities of an employer, while you retain the day-to-day management of your employees.

You as the company maintain the direct relationshiop with the employee, you allocate them the work and manage their performance.
Rivermate takes care of the local payrolling of the employee, the contracts, HR, benefits and compliance.

Responsibilities of an Employer of Record

As an Employer of Record in North Macedonia, Rivermate is responsible for:

  • Creating and managing the employment contracts
  • Running the monthly payroll
  • Providing local and global benefits
  • Ensuring 100% local compliance
  • Providing local HR support

Responsibilities of the company that hires the employee

As the company that hires the employee through the Employer of Record, you are responsible for:

  • Day-to-day management of the employee
  • Work assignments
  • Performance management
  • Training and development

Taxes in North Macedonia

Read more
  • Employer Tax Responsibilities: In North Macedonia, employers must withhold and pay social security contributions for their employees, including 18.8% for Pension and Disability Insurance, 7.5% for Health Insurance, and 1.2% for Employment Insurance, capped at 16 times the national average salary. They also withhold a flat 10% Personal Income Tax (PIT).

  • Payment Deadlines: Social insurance contributions and PIT must be calculated, withheld, and submitted monthly, with a payment deadline of the 15th of the following month.

  • Corporate Income Tax (CIT): Companies pay a flat CIT rate of 10% on profits. Property tax is also levied based on property value.

  • VAT Regulations: The standard VAT rate is 18%, with reduced rates of 10% for certain food and beverage services and 5% for specific accommodation and transport services. Financial, medical, educational, and cultural services are VAT exempt. VAT registration is mandatory for businesses with an annual turnover exceeding MKD 1,000,000, and filings are generally due monthly by the 15th.

  • Free Zones and TIDZs: Companies in Free Zones or Technological and Industrial Development Zones (TIDZs) enjoy a 10-year CIT holiday and other tax benefits, aimed at encouraging investment in manufacturing, IT, and logistics.

  • Reinvested Profits: Businesses can reduce taxable income by reinvesting profits into development activities, with no specific limitations on the type of business eligible for this benefit.

Leave in North Macedonia

Read more
  • In North Macedonia, employees are guaranteed a minimum of 20 days of paid annual leave, which increases with seniority, up to a maximum of 26 days for those with 30 or more years of service.
  • Vacation days are not impacted by public holidays, weekends, sick leave, or other valid absences, and must be used by June 30th of the following year.
  • Employees receive their average salary during vacation, calculated from the previous 12 months.
  • The country celebrates various national and religious holidays, including New Year's Day, Orthodox Christmas, Labour Day, and Independence Day, among others.
  • Different religious communities in North Macedonia observe their specific holidays, such as Orthodox Easter for Christians and Eid celebrations for Muslims.
  • Other types of leave include unlimited sick leave (with employer coverage for the first 30 days), 9 months of maternity leave, 7 days of paternity leave, and bereavement leave, which varies depending on the relation to the deceased.
  • Additional paid leaves are provided for personal events like marriage and professional exams, with unpaid leave available for mandatory military service and voting in elections.

Benefits in North Macedonia

Read more

Mandatory Employee Benefits in North Macedonia

In North Macedonia, employees are entitled to several mandatory benefits, including paid annual leave, sick leave, and public holidays. Full-time employees receive 20 to 26 working days of paid annual leave, while part-time employees get a minimum of 10 days. Sick leave is compensated up to 30 days, with varying percentages of the regular salary paid based on the duration of the illness.

Social Security Contributions

Employers are required to contribute to social security on behalf of their employees, covering pensions, health insurance, and unemployment insurance. Specifically, contributions include 18.8% for pensions, 7.5% for health insurance, and 1.2% for unemployment insurance.

Optional Employee Benefits

Some employers offer additional perks such as educational assistance, private health insurance, retirement savings plans, and flexible work arrangements to enhance employee satisfaction and competitiveness.

Health Insurance Contributions

Both employers and employees contribute to the national health insurance system, with employees contributing 7.5% of their gross salary. Family coverage can be extended by paying an additional 0.5%.

Pension Schemes

North Macedonia operates a multi-pillar pension system, including a mandatory public pension scheme and optional private pension plans. The public scheme is funded by current workers and provides benefits based on salary, contribution years, and gender. Private plans, both fully funded and supplementary, offer opportunities for additional retirement savings.

Overall, North Macedonia provides a comprehensive framework of mandatory benefits and optional perks to support the financial security and well-being of employees.

Workers Rights in North Macedonia

Read more

In North Macedonia, employment contracts can be terminated based on employee-related reasons such as failure to fulfill duties, serious disciplinary violations, misuse of sick leave, and breach of confidentiality. Employer-related termination reasons include economic, technological, or organizational changes, and cessation of business operations. The law mandates specific notice periods for terminations initiated by both employers and employees, with variations based on the number of affected employees and the nature of employment, such as seasonal work.

Employees are entitled to severance pay if terminated by the employer for organizational reasons, with the amount based on their length of service. Additionally, North Macedonia's Law on Prevention and Protection from Discrimination (2019) provides robust protections against discrimination on various grounds and outlines mechanisms for redress through the Commission for Protection from Discrimination, the Ombudsman, or legal action.

Employers have significant responsibilities under this law to prevent discrimination and ensure a safe and healthy workplace, including developing anti-discrimination policies, providing training, and implementing safety measures as per the Occupational Safety and Health Act of 2007. This act emphasizes risk assessment, control measures, and employee training to maintain workplace safety. The Ministry of Labour and Social Policy enforces these regulations through inspections and orders to rectify violations.

Agreements in North Macedonia

Read more

In North Macedonia, employment agreements are categorized into Individual Employment Agreements and Collective Agreements. Individual agreements are contracts between an employer and an employee, detailing terms such as duration of employment, job responsibilities, compensation, and termination conditions. These can be fixed-term, unlimited, or part-time. Collective agreements, negotiated between employers or employer organizations and trade unions, set general working conditions for a sector or company, including wages, working hours, and benefits.

Key aspects of employment agreements include:

  • Identification of Parties: Full names and details of both parties.
  • Job Details: Job title, duties, and workplace location.
  • Employment Terms: Type of employment, working hours, and overtime details.
  • Compensation and Benefits: Salary, benefits, and allowances.
  • Termination: Notice periods and valid reasons for termination.
  • Additional Clauses: Confidentiality and intellectual property rights.

The Labour Law of North Macedonia governs these agreements, ensuring any contradicting individual agreement terms are null and void. Probationary periods are permissible, typically up to six months, with specific conditions for termination during this period. Non-compete clauses are restricted to protect employees' rights to employment post-termination but can be enforceable under certain conditions. Legal expertise is recommended to navigate the complexities of these clauses.

Remote Work in North Macedonia

Read more
  • Remote Work Regulations in North Macedonia: There is no specific law for remote work, but the Labour Law requires a written agreement between employer and employee, which must be registered with labor authorities within three days. Standard labor protections apply to remote workers.

  • Technological Infrastructure: Employers must provide secure communication tools and necessary hardware and software for remote work. Implementing strong cybersecurity measures is essential to protect company data.

  • Employer Responsibilities: Employers should provide necessary equipment, establish work-life balance guidelines, set clear performance metrics, and educate remote employees on data security.

  • Flexible Work Arrangements: The Labour Law supports part-time work and allows employers to consider requests for reduced schedules. Flexitime and job sharing are also practiced, with agreements needed to outline specific working hours and responsibilities.

  • Data Protection Act (DPA) of 2020: Aligns with the EU's GDPR, emphasizing lawfulness, transparency, data minimization, and security in data handling. Employers must ensure secure equipment, provide data security training, implement access controls, and adhere to breach notification protocols.

  • Employee Data Protection Rights: Employees have rights to access, rectify, or erase their personal data under the DPA. Employers and employees should follow best practices like using strong passwords, being cautious of phishing, and encrypting data to ensure a secure remote work environment.

Working Hours in North Macedonia

Read more

Overview of Labor Law Regulations in North Macedonia

  • Weekly Working Hours: Standard workweek is 40 hours, typically spread over five days.
  • Daily Working Hours: Maximum of eight hours per day.
  • Overtime Regulations:
    • Overtime is limited to eight hours per week and 190 hours annually, with exceptions for certain urgent tasks.
    • Compensation for overtime must be at least 135% of the regular hourly rate.
    • Employees working over 150 overtime hours annually with less than 21 days of absence qualify for a bonus equivalent to one month's average national salary.
  • Rest Periods and Breaks:
    • Employees are entitled to a 30-minute break after six hours of work (15 minutes for a four-hour workday).
    • Mandatory 12-hour rest period between workdays.
    • At least 24 hours of uninterrupted rest per week, typically on Sundays, providing a total of at least 36 consecutive hours off.
  • Night and Weekend Work:
    • Night work includes a 35% pay increase and provisions for meals and medical care.
    • Weekend work entails a 50% pay increase.
    • Specifics can vary based on collective bargaining agreements or individual contracts.

These regulations aim to balance productivity with employee well-being and safety, allowing for deviations through collective agreements or contracts that offer more favorable conditions.

Salary in North Macedonia

Read more

Understanding market competitive salaries in North Macedonia is essential for both employers and employees. Employers need to offer competitive compensation to attract and retain talent, while employees should receive fair wages that reflect their skills and experience.

Key Factors Influencing Salaries:

  • Job Title & Responsibilities: Salary varies with the role's complexity.
  • Experience & Qualifications: Higher experience and qualifications often lead to better pay.
  • Company Size & Industry: Larger and high-demand industries tend to pay more.
  • Location: Urban areas like Skopje generally offer higher salaries than rural regions.

Resources for Determining Salaries:

  • Salary Surveys: Provide detailed salary breakdowns by industry and role.
  • Job Boards: Useful for current salary offerings in similar positions.
  • Government Resources: Offer general wage data, including average salaries.
  • Recruitment Agencies: Have up-to-date knowledge of salary trends.

Minimum Wage and Legal Framework:

  • As of March 1, 2023, the net national minimum wage is MKD 20,175.00 per month.
  • Governed by the Law on Minimum Wage, which outlines the process for revisions and applicability across various employment contracts.

Additional Compensation Elements:

  • Performance-Based Bonuses: Including a 13th-month salary and bonuses for achieving specific targets.
  • Overtime Compensation: Mandated pay for work beyond regular hours, with specific bonuses for extensive overtime work.
  • Allowances: Such as meal, transportation, and mobile phone allowances to cover work-related expenses.

Payroll Practices:

  • Frequency: Most commonly monthly.
  • Components: Includes gross salary, social security contributions, and personal income tax.
  • Legal Requirements: Employers must ensure timely payment, provide payslips, and keep accurate payroll records.

Overall, a comprehensive understanding of these factors and practices helps ensure fair and competitive compensation in North Macedonia.

Termination in North Macedonia

Read more

In North Macedonia, the Law on Labor Relations governs the notice periods and severance pay requirements for employment termination. Here are the key points:

  • Employer-Initiated Termination: Employers must provide a minimum of one month's notice, extendable to two months for mass layoffs (over 150 employees or 5% of the workforce). The maximum notice period, as per contract or collective agreement, is three months.

  • Employee-Initiated Termination: Employees are required to give one month's notice, with the possibility of extending this period to three months through agreements.

  • Summary Dismissal: Employers can terminate employment immediately without notice in cases of severe misconduct, such as prolonged unjustified absence or safety regulation violations.

  • Severance Pay: Mandatory for terminations due to business reasons, calculated based on the employee's tenure and average monthly salary, with a minimum of 50% of the average net salary in North Macedonia. Severance scales up from one net salary for up to five years of service to seven net salaries for over 25 years.

  • Types of Termination: Includes termination with notice, summary dismissal, and mutual agreement. Each type requires specific procedures and justifications.

  • Rights During Notice Period: Both parties must fulfill their obligations; employees must work, and employers must provide proper conditions and pay. Employees are entitled to time off to seek new employment.

  • Additional Considerations: Employers may need to consult with labor unions or representatives, especially during mass layoffs, and certain employees, like those pregnant or on parental leave, have additional protections.

Understanding these regulations ensures legal compliance in the termination process in North Macedonia.

Freelancing in North Macedonia

Read more

In North Macedonia, distinguishing between employees and independent contractors is crucial for legal and tax purposes, with misclassification potentially leading to fines and claims for unpaid benefits. Employees are under significant employer control, financially dependent on their employer, and integrated into the organizational structure, receiving benefits like minimum wage and paid leave. In contrast, independent contractors have more autonomy, are not financially dependent on one entity, and handle their own taxes and social security contributions.

Contract structures for independent contractors include fixed-price, hourly rate, and retainer agreements. Effective negotiation of these contracts should clearly define the scope of work, payment terms, and termination clauses. Key industries for independent contracting include IT, creative industries, and marketing.

Intellectual property rights are vital, with freelancers generally owning the copyrights to their work unless otherwise specified in a contract. The distinction between "work made for hire" and independent creations should be clearly stated to avoid copyright ownership issues.

Freelancers in North Macedonia benefit from a simple tax regime with a flat 10% tax rate on income below 7,500 MKD per month, above which VAT registration is required. They can opt for voluntary public health insurance or choose private health and pension plans for broader coverage.

Health & Safety in North Macedonia

Read more

Summary of Health and Safety Laws in North Macedonia

  • Legislation: North Macedonia's health and safety laws include the Occupational Safety and Health Law, the Law on Health Protection, and the Law on Protection from Chemical Substances, which cover employer and employee responsibilities, risk assessments, safety measures, and incident reporting.

  • Employer Responsibilities: Employers are required to conduct risk assessments, implement safety measures, provide training, supply personal protective equipment (PPE), and maintain machinery.

  • Employee Rights: Employees are entitled to a safe work environment, adequate training, and the right to refuse unsafe work without repercussions. They also have the right to participate in safety consultations.

  • Workplace Hazards: Laws address physical hazards, chemical safety, infectious agents, and psychosocial issues like workplace violence and stress.

  • Vulnerable Groups: There are additional protections for young workers, pregnant and breastfeeding women, and disabled workers, including specific risk assessments and workplace accommodations.

  • Enforcement and Compliance: The State Labor Inspectorate enforces health and safety regulations through inspections, with the authority to issue fines and corrective actions. Compliance is aligned with EU Directives, particularly Framework Directive 89/391/EEC.

  • Risk Assessment and Management: Employers must perform thorough risk assessments and manage risks using a hierarchical approach from elimination to PPE.

  • Occupational Health Services: Employers must provide health services including health surveillance, preventive measures, and health advice related to workplace risks.

  • Workplace Safety Practices: Regulations cover common hazards and mandate the establishment of safety committees in larger workplaces, emphasizing training and emergency procedures.

  • Incident Reporting and Investigation: Employers must report accidents and occupational diseases, with investigations focusing on prevention rather than blame.

  • Inspection and Compliance: Inspections assess risk management, safety equipment, and compliance with health and safety laws, with a frequency determined by risk levels.

Despite comprehensive legislation, enforcement challenges persist, especially in smaller businesses and the informal sector, highlighting the need for improved safety culture and consistent monitoring.

Dispute Resolution in North Macedonia

Read more

North Macedonia has specialized labor courts that handle first-instance labor disputes, integrated within the existing court structure. These courts deal with issues arising from employment contracts, collective bargaining agreements, and other work-related disputes. The process involves initial conciliation or mediation attempts, followed by a formal trial if necessary, with the possibility of appealing judgments.

Additionally, parties can opt for arbitration panels, often facilitated by the Ministry of Labor, where impartial arbitrators help reach a resolution in a less formal setting. These panels can issue either non-binding recommendations or binding awards.

The country also conducts compliance audits and inspections to ensure businesses adhere to legal and regulatory frameworks, involving planning, fieldwork, reporting, and corrective actions. Various government agencies are responsible for these audits, which are crucial for maintaining rule of law and fair business practices.

Whistleblowing is supported by the Law on Protection of Whistleblowers, providing confidentiality and protection against retaliation for those reporting wrongdoing. North Macedonia's labor laws, influenced by its ratification of core International Labour Organization conventions, include protections against discrimination, regulations on working conditions, and enforcement challenges, particularly in the informal economy.

Cultural Considerations in North Macedonia

Read more

Communication and Business Culture in North Macedonia

  • Indirect Communication: In North Macedonia, communication tends to be indirect to maintain group harmony and respect, especially in a collectivistic society. Directness increases with familiarity and necessity.

  • Formality in Professional Settings: Initial interactions are formal, using titles and last names. Conservative business attire is expected, and a well-groomed appearance is valued.

  • Non-Verbal Cues: Understanding body language is crucial, including appropriate eye contact, reserved facial expressions, personal space considerations, and controlled gestures.

  • Relationship-Oriented Negotiations: Building trust and rapport is essential before business dealings. Negotiations focus on long-term relationships rather than quick deals, requiring patience and flexibility.

  • Hierarchical and Centralized Decision-Making: North Macedonia features a high power distance with centralized authority. Decisions are typically made by top management with limited lower-level input.

  • Directive Leadership: Leadership is generally directive, expecting leaders to provide clear directions and decisions. However, there is a trend towards more participative styles in modern and Western-influenced companies.

  • Statutory and Regional Holidays: Awareness of national and local holidays is important as they can significantly affect business operations. Major holidays include New Year's Day, Saints Cyril and Methodius Day, Ilinden Uprising, Independence Day, and Republic Day.

  • Impact on Business Operations: Holidays may lead to closures or reduced business hours. Companies usually provide advance notice of holiday schedules, and critical operations may continue with a skeleton staff.

Understanding these cultural nuances is key to successful interactions and negotiations in North Macedonia.

Frequently Asked Questions for Employer of Record services in North Macedonia

Who handles the filing and payment of employees' taxes and social insurance contributions when using an Employer of Record in North Macedonia?

When using an Employer of Record (EOR) in North Macedonia, the EOR handles the filing and payment of employees' taxes and social insurance contributions. This includes the calculation, withholding, and remittance of income taxes, as well as contributions to social security, health insurance, and other mandatory benefits as required by North Macedonian law. The EOR ensures compliance with local tax regulations and labor laws, thereby relieving the client company of the administrative burden and reducing the risk of legal issues related to payroll and tax compliance.

What options are available for hiring a worker in North Macedonia?

In North Macedonia, employers have several options for hiring workers, each with its own set of legal and administrative requirements. Here are the primary methods:

  1. Direct Employment:

    • Local Entity: Establishing a local entity, such as a subsidiary or branch office, is a common approach. This involves registering the business with the Central Registry of the Republic of North Macedonia and complying with local labor laws, tax regulations, and social security contributions.
    • Employment Contracts: Employers must draft employment contracts that comply with the Labor Law of North Macedonia, which includes provisions on working hours, wages, termination conditions, and employee rights.
  2. Independent Contractors:

    • Freelancers: Hiring independent contractors or freelancers is another option. This arrangement is typically less regulated than direct employment but requires careful consideration to ensure compliance with local tax laws and to avoid misclassification issues.
    • Service Agreements: Employers can engage contractors through service agreements, which should clearly outline the scope of work, payment terms, and duration of the contract.
  3. Temporary Employment Agencies:

    • Staffing Agencies: Utilizing temporary employment agencies can be a flexible solution for short-term or project-based needs. These agencies handle the administrative burden of hiring, payroll, and compliance, allowing employers to focus on their core business activities.
  4. Employer of Record (EOR) Services:

    • Rivermate and Similar Providers: An Employer of Record (EOR) like Rivermate can be an efficient and compliant way to hire workers in North Macedonia without establishing a local entity. The EOR becomes the legal employer of the worker, handling all employment-related responsibilities, including payroll, tax withholding, social security contributions, and compliance with local labor laws.
    • Benefits of EOR:
      • Compliance: Ensures adherence to North Macedonian labor laws and regulations, reducing the risk of legal issues.
      • Cost-Effective: Eliminates the need for setting up a local entity, which can be time-consuming and expensive.
      • Speed: Facilitates quicker hiring processes, allowing businesses to onboard talent rapidly.
      • Administrative Relief: Takes over administrative tasks such as payroll processing, benefits administration, and statutory reporting, freeing up internal resources.

In summary, while direct employment and independent contracting are viable options for hiring in North Macedonia, using an Employer of Record service like Rivermate offers significant advantages in terms of compliance, cost savings, and administrative efficiency. This makes it an attractive option for companies looking to expand their workforce in North Macedonia without the complexities of establishing a local presence.

Is it possible to hire independent contractors in North Macedonia?

Yes, it is possible to hire independent contractors in North Macedonia. However, there are several important considerations to keep in mind to ensure compliance with local laws and regulations.

  1. Legal Framework: Independent contractors in North Macedonia are governed by the Law on Obligations, which outlines the general principles of contract law. Unlike employees, independent contractors are not covered by the Labor Law, which means they do not receive the same protections and benefits as employees.

  2. Contractual Agreement: It is crucial to have a well-drafted contract that clearly defines the nature of the relationship, the scope of work, payment terms, and other relevant conditions. This contract should explicitly state that the individual is an independent contractor and not an employee to avoid any potential misclassification issues.

  3. Taxation: Independent contractors are responsible for their own tax filings and social security contributions. They must register with the Public Revenue Office and comply with the tax regulations applicable to self-employed individuals. Employers do not withhold taxes or social security contributions for independent contractors.

  4. Intellectual Property: Ensure that the contract includes clauses related to intellectual property rights, especially if the contractor will be creating proprietary work. This helps in safeguarding the company's interests and clarifying ownership of any work produced.

  5. Compliance Risks: Misclassification of employees as independent contractors can lead to significant legal and financial penalties. Authorities may reclassify the relationship as employment if the contractor is found to be working under conditions similar to those of an employee, such as fixed working hours, direct supervision, and integration into the company’s organizational structure.

  6. Benefits of Using an Employer of Record (EOR): Engaging an Employer of Record (EOR) like Rivermate can help mitigate these risks. An EOR can handle the complexities of local compliance, tax filings, and contractual agreements, ensuring that all legal requirements are met. This allows companies to focus on their core business activities while ensuring that their workforce is managed in accordance with North Macedonian laws.

In summary, while hiring independent contractors in North Macedonia is feasible, it requires careful attention to legal and regulatory details to avoid potential pitfalls. Utilizing an EOR service can provide peace of mind and ensure compliance with local laws.

What are the costs associated with employing someone in North Macedonia?

Employing someone in North Macedonia involves several costs that employers need to consider. These costs can be broadly categorized into direct compensation, social security contributions, and other statutory benefits and obligations. Here’s a detailed breakdown:

  1. Gross Salary: This is the primary cost and includes the base salary agreed upon with the employee. The gross salary is subject to various deductions and contributions.

  2. Social Security Contributions: Employers in North Macedonia are required to make contributions to the social security system, which includes health insurance, pension and disability insurance, and unemployment insurance. As of the latest regulations, the employer's contribution rates are approximately:

    • Pension and Disability Insurance: 18.8% of the gross salary.
    • Health Insurance: 7.5% of the gross salary.
    • Unemployment Insurance: 1.2% of the gross salary.
  3. Personal Income Tax: While this is deducted from the employee's salary, it is the employer's responsibility to withhold and remit it to the tax authorities. The personal income tax rate in North Macedonia is a flat rate of 10%.

  4. Mandatory Health and Safety Costs: Employers must ensure a safe working environment, which may involve costs related to health and safety training, equipment, and compliance with local regulations.

  5. Paid Leave and Holidays: Employers must provide paid leave, including annual leave (minimum of 20 working days per year), public holidays, and sick leave. The cost of these paid leaves is borne by the employer.

  6. Severance Pay: In case of termination, employers may be required to provide severance pay, depending on the circumstances and the length of service of the employee. The specifics can vary, but generally, it is calculated based on the employee's tenure and salary.

  7. Other Benefits: Depending on the employment contract and company policies, employers might offer additional benefits such as meal allowances, transportation allowances, bonuses, and other perks, which add to the overall employment cost.

  8. Administrative Costs: Managing payroll, compliance, and HR administration involves additional costs, either through internal HR departments or outsourced services.

Using an Employer of Record (EOR) like Rivermate can help manage these costs effectively. An EOR handles all aspects of employment, including payroll, tax compliance, and benefits administration, ensuring that all local laws and regulations are adhered to. This can significantly reduce the administrative burden and potential risks associated with non-compliance, allowing businesses to focus on their core operations while ensuring their employees in North Macedonia are well-managed and compliant with local employment laws.

What is HR compliance in North Macedonia, and why is it important?

HR compliance in North Macedonia refers to the adherence to the country's labor laws, regulations, and standards that govern employment practices. This includes a wide range of legal requirements such as employment contracts, working hours, wages, benefits, health and safety standards, termination procedures, and anti-discrimination laws. Ensuring HR compliance is crucial for several reasons:

  1. Legal Protection: Compliance with North Macedonian labor laws protects companies from legal disputes and potential lawsuits. Non-compliance can result in significant fines, penalties, and legal costs, which can be detrimental to a business's financial health and reputation.

  2. Employee Rights and Welfare: Adhering to HR compliance ensures that employees' rights are protected. This includes fair wages, safe working conditions, and protection against unfair dismissal or discrimination. This not only fosters a positive work environment but also enhances employee satisfaction and retention.

  3. Reputation Management: Companies that comply with local labor laws are viewed more favorably by both employees and the public. This can enhance the company's reputation, making it easier to attract top talent and build strong relationships with stakeholders.

  4. Operational Efficiency: Understanding and implementing HR compliance helps in streamlining HR processes and policies. This can lead to more efficient management of human resources, reducing the risk of errors and inconsistencies in employment practices.

  5. Risk Mitigation: By staying compliant, companies can mitigate various risks associated with non-compliance, such as financial penalties, legal actions, and damage to the company's reputation. This proactive approach helps in maintaining business continuity and stability.

  6. Global Standards: For multinational companies operating in North Macedonia, HR compliance ensures that the local operations align with global standards and practices. This is particularly important for maintaining consistency and coherence in HR policies across different regions.

Using an Employer of Record (EOR) like Rivermate can significantly simplify the process of achieving HR compliance in North Macedonia. An EOR takes on the responsibility of ensuring that all employment practices adhere to local laws and regulations. This includes managing payroll, benefits, taxes, and other HR functions, allowing companies to focus on their core business activities without worrying about compliance issues. Additionally, an EOR can provide expert guidance on navigating the complexities of North Macedonian labor laws, ensuring that the company remains compliant at all times.

What legal responsibilities does a company have when using an Employer of Record service like Rivermate in North Macedonia?

When a company uses an Employer of Record (EOR) service like Rivermate in North Macedonia, it delegates many of its legal responsibilities related to employment to the EOR. However, there are still certain legal responsibilities and considerations that the company must be aware of:

  1. Compliance with Local Labor Laws: The EOR ensures that all employment practices comply with North Macedonian labor laws, including contracts, wages, benefits, and termination procedures. The company must ensure that the EOR is fully compliant with these regulations.

  2. Employment Contracts: The EOR will handle the drafting and management of employment contracts in accordance with North Macedonian law. These contracts must include all mandatory provisions such as job description, salary, working hours, and termination conditions.

  3. Payroll and Taxation: The EOR is responsible for managing payroll, including the calculation and payment of salaries, taxes, and social security contributions. The company must ensure that the EOR accurately handles these financial obligations to avoid legal issues.

  4. Employee Benefits: The EOR must provide statutory benefits required by North Macedonian law, such as health insurance, pension contributions, and paid leave. The company should verify that these benefits are correctly administered.

  5. Work Permits and Visas: If the company employs foreign nationals, the EOR will manage the process of obtaining necessary work permits and visas. The company must ensure that all employees have the legal right to work in North Macedonia.

  6. Health and Safety Regulations: The EOR must ensure that the workplace complies with North Macedonian health and safety regulations. The company should collaborate with the EOR to maintain a safe working environment.

  7. Employee Rights and Protections: The EOR must uphold employee rights as stipulated by North Macedonian labor laws, including protection against unfair dismissal, discrimination, and harassment. The company must ensure that these rights are respected.

  8. Data Protection: The EOR must comply with data protection laws, including the handling of personal employee information. The company should ensure that the EOR has robust data protection policies in place.

  9. Termination Procedures: The EOR will manage the termination process in compliance with North Macedonian law, including notice periods, severance pay, and any other legal requirements. The company must ensure that terminations are handled legally and ethically.

  10. Reporting and Documentation: The EOR is responsible for maintaining accurate employment records and submitting necessary reports to local authorities. The company should ensure that all documentation is properly managed and accessible.

By using an EOR like Rivermate in North Macedonia, a company can significantly reduce its administrative burden and ensure compliance with local employment laws. However, it remains the company's responsibility to oversee the EOR's activities and ensure that all legal obligations are met.

What is the timeline for setting up a company in North Macedonia?

Setting up a company in North Macedonia involves several steps and can take approximately 10 to 15 business days, depending on the efficiency of the processes and the completeness of the required documentation. Here is a detailed timeline for setting up a company in North Macedonia:

  1. Name Reservation (1-2 days): The first step is to reserve the company name with the Central Registry of the Republic of North Macedonia. This process typically takes one to two business days.

  2. Preparation of Documentation (2-3 days): Prepare the necessary documentation, including the Articles of Association, proof of identity of the founders, and other required forms. This step can take two to three days, depending on the complexity of the documents and the availability of the founders.

  3. Notarization of Documents (1 day): Once the documents are prepared, they need to be notarized by a public notary in North Macedonia. This usually takes one business day.

  4. Registration with the Central Registry (3-5 days): Submit the notarized documents to the Central Registry for company registration. The registration process typically takes three to five business days.

  5. Opening a Bank Account (1-2 days): After receiving the registration certificate, open a corporate bank account in North Macedonia. This process usually takes one to two business days.

  6. Tax Registration (1-2 days): Register the company with the Public Revenue Office for tax purposes. This step generally takes one to two business days.

  7. Social Security Registration (1-2 days): Register the company with the Health Insurance Fund and the Pension and Disability Insurance Fund for social security purposes. This process typically takes one to two business days.

  8. Municipal Registration (1-2 days): Depending on the nature of the business, you may need to register with the local municipality. This step usually takes one to two business days.

Overall, the entire process of setting up a company in North Macedonia can be completed within 10 to 15 business days, provided all documentation is in order and there are no delays in the registration processes. Using an Employer of Record (EOR) service like Rivermate can significantly streamline this process, as they handle all administrative and compliance-related tasks, allowing you to focus on your core business activities.

Do employees receive all their rights and benefits when employed through an Employer of Record in North Macedonia?

Yes, employees in North Macedonia receive all their rights and benefits when employed through an Employer of Record (EOR) like Rivermate. An EOR ensures compliance with local labor laws and regulations, which is crucial for protecting employee rights and benefits. Here are some key aspects:

  1. Legal Compliance: An EOR in North Macedonia ensures that employment contracts comply with local labor laws, including terms related to working hours, overtime, and termination procedures. This guarantees that employees receive their legal entitlements.

  2. Social Security and Taxes: The EOR handles the calculation and remittance of social security contributions and taxes, ensuring that employees are covered under the national social security system. This includes health insurance, pension contributions, and unemployment insurance.

  3. Paid Leave: Employees are entitled to paid leave, including annual leave, sick leave, and maternity/paternity leave, as stipulated by North Macedonian labor laws. An EOR ensures these entitlements are provided and managed correctly.

  4. Minimum Wage and Salary Payments: The EOR ensures that employees are paid at least the minimum wage as required by law and that salary payments are made on time. They also handle any statutory bonuses or allowances.

  5. Workplace Safety: An EOR ensures that the workplace complies with health and safety regulations, providing a safe working environment for employees.

  6. Employee Benefits: Beyond statutory requirements, an EOR can also manage additional benefits that a company may offer, such as private health insurance, retirement plans, or other perks, ensuring these are administered correctly.

By using an EOR like Rivermate in North Macedonia, companies can be confident that their employees are receiving all their legal rights and benefits, while also simplifying the complexities of international employment compliance.

How does Rivermate, as an Employer of Record in North Macedonia, ensure HR compliance?

Rivermate, as an Employer of Record (EOR) in North Macedonia, ensures HR compliance through a comprehensive approach that addresses the unique legal and regulatory landscape of the country. Here are the key ways Rivermate ensures HR compliance in North Macedonia:

  1. Local Expertise and Knowledge: Rivermate employs local HR and legal experts who are well-versed in North Macedonian labor laws, tax regulations, and employment standards. This local expertise ensures that all HR practices are compliant with the latest legal requirements.

  2. Employment Contracts: Rivermate prepares and manages employment contracts that comply with North Macedonian labor laws. These contracts include all necessary clauses related to wages, working hours, benefits, termination conditions, and other statutory requirements, ensuring that both the employer and employee are protected.

  3. Payroll Management: Rivermate handles payroll processing in accordance with North Macedonian regulations. This includes accurate calculation of salaries, tax withholdings, social security contributions, and other mandatory deductions. By managing payroll, Rivermate ensures timely and compliant salary payments.

  4. Tax Compliance: Rivermate ensures that all tax obligations are met, including income tax, social security contributions, and other statutory taxes. They stay updated with any changes in tax laws and ensure that all filings and payments are made accurately and on time.

  5. Employee Benefits Administration: Rivermate manages statutory benefits such as health insurance, pension contributions, and other mandatory benefits. They also offer additional benefits administration, ensuring that employees receive all entitled benefits in compliance with local laws.

  6. Labor Law Adherence: Rivermate ensures adherence to North Macedonian labor laws, including regulations on working hours, overtime, leave entitlements (such as annual leave, sick leave, and maternity/paternity leave), and termination procedures. They ensure that all employment practices are fair and legal.

  7. Regulatory Updates: Rivermate continuously monitors changes in North Macedonian employment laws and regulations. They proactively update their HR policies and practices to remain compliant with any new legal requirements, ensuring that their clients are always in compliance.

  8. Employee Onboarding and Offboarding: Rivermate manages the entire employee lifecycle, from onboarding to offboarding, in compliance with local laws. This includes proper documentation, orientation, and ensuring that termination processes are conducted legally and ethically.

  9. Data Protection and Privacy: Rivermate ensures compliance with data protection laws, including the handling and storage of employee personal data. They implement robust data security measures to protect sensitive information in accordance with North Macedonian regulations.

  10. Dispute Resolution: Rivermate provides support in resolving any employment disputes that may arise, ensuring that all actions taken are compliant with local labor laws and regulations. They offer guidance and mediation to address issues effectively and legally.

By leveraging Rivermate's services as an Employer of Record in North Macedonia, companies can confidently expand their operations in the country while ensuring full compliance with all HR and employment laws. This allows businesses to focus on their core activities without the complexities and risks associated with local HR compliance.

Rivermate | A 3d rendering of earth

Hire your employees globally with confidence

We're here to help you on your global hiring journey.