North Macedonia is a country in the south-central Balkans. It is bordered to the north by Kosovo and Serbia, to the east by Bulgaria, to the south by Greece, and to the west by Albania. The region of Macedonia owes its importance to its location as a major junction of communication routes. The main industries of the country are information and communication technology, agribusiness and food processing, textile and clothing, automotive components, wine industry, and electro-metal industry.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in North Macedonia.
Capital :
Skopje
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Currency :
Macedonian Denar (MKD, Ден)
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Languages spoken :
Macedonian, Albanian
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Population :
1.83 million (2021 est.)
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Minimum wage 2023 :
MKD 22,500 monthly
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Cost of Living index :
$ (118 of 139 countries)
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Payroll Frequency :
Monthly
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VAT - standard rate :
18%
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GDP - real growth rate :
4% (2021 est.)
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The national holidays mentioned below are valid for the year 2024.
The approximate time for sharing the contract with an employee in North Macedonia is 5 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.
The full-time hours of work should not exceed 40 hours per week. The workweek should last, by rule, five workdays. A collective agreement may stipulate that a working time less than 40 hours of work per week, but no less than 36 hours per week, is deemed full-time hours.
The employee is obliged, at the employer’s request, to work in excess of the full-time hours (overtime work):
Overtime work should not exceed eight hours in the course of one week and 190 hours per year, except for work that, due to the specific work process, cannot be interrupted, or when it is not possible to organize the work in shifts. Overtime work within a period of three months should not exceed, on average, eight hours a week.
The employer is obliged to pay the employee a bonus, who has:
The bonus should be the amount of one average salary paid in the Republic of Macedonia, in addition to the overtime allowance.
Since 2021, the probationary periods are decreased to four months from six. When entering into the employment contract, the employer and the employee may agree to a probationary period. The employment contract, in addition to all rights and obligations arising from employment, should also lay down the amount of the wages and the duration of the probationary period.
The contracting parties may terminate the employment contract with a notice period:
Condition | Notice Period |
Termination of employment of seasonal employees | 7 working days |
Termination initiated by the employee or employer for an individual or few employees | 1 month |
Termination of employment of more than 150 employees or 5% of the total number of employees | 2 months |
The employment contract or the collective agreement may provide for a longer notice period, which should not exceed three months.The employer may terminate the employment contract of the employee due to a breach of the workplace discipline or failure to perform the obligations laid down by law, collective agreement, an act of the employer, and the employment contract, without a notice period, in certain prescribed conditions.
The employee are entitled to a paid annual leave of at least 20 working days. It may be extended to 26 working days with a collective agreement or employment contract. An older employee (female employees over 57 years of age and male employees over 59 years of age), a disabled employee, an employee with an impairment rating of at least 60%, and an employee providing care for a child with a physical or mental disability are entitled to three additional days of annual leave.
The employee becomes entitled to use the full annual leave after an uninterrupted period of service of at least six months with the same employer. The employer is obligated to ensure that the employee uses the 12 days of the annual leave by the end of the current calendar year, and the remainder until June 30 of the following year.
There is no annual limit on the number of sick days an employee can take. The employer also pays a salary compensation in the event of an employee’s incapacity for work due to illness or injury for a period of up to 30 days, and if the absence lasts more than 30 days, the salary compensation is paid to the debit of the health insurance.
The temporary disability leave is funded by contributions to the pension and disability insurance. The assessment of temporary working disability is ascertained based on medical examination and documentation. The assessment for sick leave of up to seven days is supplied by a doctor. For a longer period, a medical commission should be formed based upon the proposal of the doctor chosen by the employee.
One of the parents of a child with developmental problems and special educational needs is entitled to work half of the full working hours if both parents are employed or in the case of a single parent, in accordance with the finding of a competent medical panel, if the child is not placed in institutional care. The reduced working hours is considered full-time hours of work, and the right to salary compensation is exercised in accordance with the social welfare regulations.
The female employee is entitled to paid leave during pregnancy, childbirth, and parenting in the duration of nine uninterrupted months, or 15 months in the case of twins or multiple births. Based on an opinion issued by the competent healthcare authority, the female employee may commence the pregnancy, childbirth, and maternity leave 45 days prior to delivery, and mandatorily 28 days prior to delivery.
The female employee besides the right to salary is also entitled to salary compensation during the pregnancy and maternity leave amounting to 50% of the determined amount of the salary compensation for the maternity leave, in accordance with the healthcare regulations.
If the maternity leave of up to nine months is not used by the female employee, the right to leave can be used by the father or the adoptive parent of the child. Also, Article 146 provides for the right to a paid leave due to personal and family circumstances that include the birth of a child for the father apart from entering into marriage, and the death of a close relative in the duration of up to seven working days. The days of the paid leave are determined by the collective agreement.
A female employee who adopts a child is entitled to leave until the child reaches nine months of age, and if she adopts more than one child (two or more children), a leave of 15 months. The pay and the conditions for adoption leave are the same as for maternity leave.
The employee who cannot carry out work for reasons of force majeure is entitled to compensation from the employer in the amount of 50% of the salary.
During the notice period, the employer is obliged to provide to the employee absence from work of four hours per week in order to seek new employment. The employee is entitled to pay compensation in accordance with the collective agreement.
The employee who is a voluntary blood donor is entitled to a paid leave for the duration of two consecutive days for each blood donation from the State Insurance Fund.
The employee who is attending education or training in accordance with the requirements of the working process, for the purpose of maintaining, i.e. improving their capacity for work at the workplace and keeping their employment, as well as, the employee who is attending education or training in their own interest, is entitled to a paid leave from work to take exams.
The employee has the right to a paid leave due to personal and family circumstances for the duration of up to seven working days:
The days of the paid leave are determined by the collective agreement.
Other conditions like military duties, winning elections, or court duties are also counted in paid leave. In these cases, the expenses are borne by the body or institution where the relevant employee shall pursue the function, i.e., perform the duty under the specific law.
The employee may take unpaid leave without salary and social security contributions, in the cases and under the conditions laid down in the collective agreement, with a duration that should not exceed three months in the course of the calendar year.
Employers do not pay any social security contributions. However, they are obligated to calculate, withhold for the employee, and pay compulsory social contributions on gross salary as follows:
Category | Employee Contributions |
Pension and disability insurance | 18.8% |
Health insurance | 7.5% |
Employment insurance | 1.2% |
Additional health insurance contribution in case of an injury at work and a professional illness* | 0.5% |
*A contribution for obligatory insurance against invalidity and injury at work and occupational diseases amounting to 4% of the basis (50% of the national average salary per employee in the current month) is paid by the respective institution for the duration of the internship/voluntary work/ imprisonment/training of unemployed people and public works.
There are two types of health insurance: compulsory and voluntary insurance for some forms of healthcare. The compulsory health insurance includes healthcare benefits at the primary healthcare level, at the specialist consultative healthcare level, and hospital services. The amount of the salary compensation during the temporary work disability is determined by the employer, i.e. the Fund with a general act, but it should amount to at least 70% of the basis for salary compensation.
In the event of the employee’s incapacity to work due to injuries sustained because of a failure to provide for adequate occupational safety and health facilities on the part of the employer, the employer should pay a salary compensation for a period exceeding 30 days, based on the report of the public administration body with competencies in the field of labor inspection.
There is also a contribution of 0.5% of the gross salary as an additional health insurance contribution in case of an injury at work and a professional illness paid by the employee.
Only the employee contributes 1.2% towards employment insurance.
Employees who left the jobs of their own accord, or in mutual agreement with the employer, cannot apply for the unemployment benefit. The minimum contribution period of nine consecutive months in employment/insurance or 12 months with an interruption during the last 18 months of employment/insurance is provided in law. The benefit is paid as of the first day upon the termination of employment if the person files a claim to the Employment Agency within 30 days upon termination of employment. The duration of benefits depends on the time the insured person has been employed and has been paying insurance contributions.
The retirement age is 64 for men and 62 for women with a minimum of 15 years of pension service. However, the employer should terminate the employment contract of the employee when the employee reaches the retirement age. The pension system includes Mandatory Pension and Disability Insurance, mandatory and voluntary Fully-funded Pension Insurance and Family/Survivors’ Pension.
Nursing a sick member of the closer family older than three years is compensated by the salary but up to 30 days at the most. This benefit is provided through statutory health insurance payable by the employee.
The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.
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