Country Payroll Guide North Macedonia

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Key Facts

Capital
Skopje
Date format
dd/mm/yyyy
Currency
Macedonian Denar (MKD)
VAT
the standard rate is 18%

Contributions

Employees

Pension & Disability
Pension & Disability - 18.8%
Health Insurance
Health Insurance - 7.5%
Employment Insurance
Employment Insurance - 1.2%
Total Employee Cost
Total Employee Cost - 28%

Minimum Wage

Minimum Wage
The minimum wage in North Macedonia is 17943 MKD per month

Payroll

Payroll Cycle
Monthly
13th Salary

Any employee who has worked more than 150 hours than the regular full time hours, and who was not absent for more than 21 days from work with the same employer will receive a bonus of one month’s average salary.

Income Tax

Employee Income Tax (1)
Flat rate - 10%

Working Hours

General Working Hours

40 hours per week.

Overtime

Overtime is paid in the same way as the 13th salary (bonus).

Leave

Paid Time Off

Employees are entitled to at least 20 days of annual leave, this can be increased to 26 days depending on job performance, length of employment etc.

Public Holidays

11 public holidays.

Sick Days

Employers will pay the employee’s first 30 days of sick leave, from then on health insurance will be responsible. The amount an employee will be paid will depend on the length of the sick leave:

  • Up to 7 days – 70% of the salary
  • Up to 15 days – 80% of the salary
  • More than 15 days – 90% of the salary
Maternity Leave

9 months of maternity leave, this can begin 45 days prior to the employees’ due date.

Paternity Leave

7 days of paternity leave.

Parental Leave

Maternity leave may be transferred to the father if the mother is returning to work.

Other Leave
  • Marriage Leave – 3 days
  • Marriage of a child – 2 days
  • Death of a partner / child – 5 days
  • Death of a parent / sibling – 2 days

Termination

Termination Process

Reasonable cause along with a written notice must be provided by the employer.

Notice Period

Generally the minimum notice period is 3 months, and the maximum is 3 months.

Severance Pay

Severance pay is calculated as follows:

  • Up to five years of employment – up to one net salary
  • Between five and ten years of employment – two and a half net salaries
  • Between 10 and 15 years of employment – in the amount of three and a half net salaries
  • Between 15 and 20 years of employment – in the amount of four and a half net salaries
  • Between 20 and 25 years of employment – six net salaries over 25 years of employment – up to seven net salaries.

This will be paid at the average net salary of the employee in the previous six months.

Probation Period

Four months.