Payroll and Benefits Guide North Macedonia
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
| 0.00% | Social contributions are fully borne by the employees while the employer is obligated to deduct the contributions on behalf of the employees. |
| 0.00% | Total Employment Cost |
| Employee Payroll Contributions | |
| 18.80% | Pension & Disability Insurance |
| 7.50% | Health Insurance |
| 0.50% | Additional Health Insurance |
| 1.20% | Employment Insurance |
| 28.00% | Total Employee Cost |
| Employee Income Tax | |
| 10% | Flat tax rate |
Employer taxes
Working Hours
General
The standard working week in Macedonia consists of 8 hours a day and 40 hours a week. Sunday has been declared a non-working day for most of the working population in accordance with the 2022 amendments of the Labour Law.
Overtime
| Aspect | Regulation Details |
| Maximum Ordinary Hours | 40 hours per week (typically 8 hours per day, spread over five days). Overtime is any work performed beyond the standard working hours. |
| Consent and Obligation | An employee is generally obliged to perform overtime at the employer’s request in cases of exceptional increase in the volume of work, necessity to continue the business process, or urgent repairs/safety measures. |
| Daily Overtime Cap | Overtime can last a maximum of 8 hours per week (averaged over a three-week period). |
| Annual Overtime Cap | Overtime is strictly limited to a maximum of 190 hours per year. |
| Prohibitions | Overtime work is generally prohibited for employees working night shifts or with reduced working hours due to difficult conditions, and is restricted for minors and certain other categories. |
| Sunday Work | Sunday is legislated as a mandatory weekly non-working day for most employees (with specific, limited exceptions for essential services or continuous production, which are highly regulated). |
Mandatory Overtime Pay Rates
Overtime is compensated with a supplement paid in addition to the employee’s regular wage. The minimum premium rates are often derived from the Labour Law and the General Collective Agreement.
| Day/Condition | Minimum Compensation Rate (Supplement) | Total Pay Rate | Notes |
| Standard Overtime (Working Days) | +35% of the regular hourly wage. | 135% | This is the legally established minimum for standard overtime on weekdays (Mon–Sat). |
| Night Work Overtime (10:00 PM – 6:00 AM) | +35% of the regular hourly wage. | 135% | This is the minimum required night work premium. This premium is cumulative with the standard overtime pay, often leading to a minimum total premium of $\mathbf{70\%}$ ($\approx 170\%$ total pay). |
| Sunday Overtime (If authorized) | +50% of the regular hourly wage. | 150% | This premium applies when Sunday work is legally authorized. This is cumulative with the standard $\mathbf{35\%}$ overtime premium. |
| Public Holiday Work | +50% of the regular hourly wage. | 150% | This premium applies for work on official public holidays and is cumulative with the standard $\mathbf{35\%}$ overtime premium. |
Additional Compensation (Bonus)
-
Mandatory Annual Bonus: Employees who work more than 150 hours of overtime per year and have fewer than 21 days of absence (excluding annual leave) are entitled to an additional bonus equal to one average national salary.
Payroll
Payroll Cycle
In Macedonia, the payroll frequency is monthly. The payment date is until the 15th of the following month.
13th Salary
13th-month salary payments are common practice in Macedonia. Eligible employees (those that have worked in excess of 150 hours over regular hours and have not been absent from work for more than 21 days during the year) are entitled to an additional salary supplement/bonus payment. This is calculated at the rate of a one-month regular salary and is usually paid at the end of the year.
Leave
Annual Leave (vacation)
Annual paid time off is dependent on the amount of service the employee has completed.
An employee who has completed up to 5 years’ service is entitled to 20 days paid annual leave per year. This increases by one day every five years of service up to a maximum of 26 days for an employee who has completed more than 30 years of service.
A minimum of 12 days’ leave must be used each year, and the rest can carry over. These days should be used by the end of June of the following year unless there is a specific reason and agreement to carry them further.
PTO carryover
In North Macedonia, unused statutory annual leave can be carried over, but it generally must be used by 30 June of the following year. Employers cannot forfeit accrued statutory leave with a blanket “use-it-or-lose-it” policy, and unused leave must be paid out on termination.
Public Holidays
When certain holidays fall on a weekend, another day is given off in lieu.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 7 January 2026 | Wednesday | Orthodox Christmas Day | Standard holiday |
| 20 March 2026 | Friday | Ramazan Bajram (Eid al-Fitr) | |
| 13 April 2026 | Monday | Orthodox Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 24 May 2026 | Sunday | St. Cyril and St. Methodius Day | Standard holiday |
| 25 May 2026 | Monday | St. Cyril and St. Methodius Day Holiday | |
| 2 August 2026 | Sunday | Ilinden (Republic Day) | Standard holiday |
| 3 August 2026 | Monday | Ilinden Holiday | |
| 8 September 2026 | Tuesday | Independence Day | Standard holiday |
| 11 October 2026 | Sunday | Day of the Macedonian Uprising | Standard holiday |
| 12 October 2026 | Monday | Day of the Macedonian Uprising Holiday | |
| 23 October 2026 | Friday | Day of the Macedonian Revolutionary Struggle | Standard holiday |
| 8 December 2026 | Tuesday | St. Clement of Ohrid Day | Standard holiday |
Sick Days
Employers are required to pay employees a salary for up to 30 days. After that, health insurance pays the remaining sick leave.
The duration of the sickness determines the sick pay entitlement. For sickness absence of up to 7 working days, the employee will receive 70.00% of their regular salary rate. For up to 15 days sickness this increases to 80.00%, and for over 15 days the entitlement is 90.00%.
Maternity Leave
Pregnant employees are entitled to nine months (increasing to 15 months for multiple births) of paid maternity leave, paid by social security. The maternity leave can start 45 days before the due date providing an employee can produce a pregnancy certificate up until the mandatory 28 days before the due date.
A female employee who adopts a child is entitled to leave up to the child reaching nine months. If she adopts more than one child (two or more), the employee is entitled to a leave of 15 months.
Paternity Leave
Fathers are entitled to 7 days of paid paternity leave.
Parental Leave
If the female employee does not use her parental leave, the right to parental leave can be used by the father or the child’s adoptive parent.
After the expiry of the pregnancy, childbirth, and maternity leave rights, female employees are entitled to unpaid maternity leave of up to three months until the child reaches three years of age, which can be taken in three parts.
Other Leave
Personal Leave: Depending on the Collective Agreement e.g. covering most workers in the private sector/Employment Contract terms, an employee may be entitled to paid leave due to personal and family circumstances up to a total of 7 working days (combined for all events) during the year, including the following circumstances:
- Marriage Leave: an employee is entitled to up to 3 days leave for their marriage and 2 days leave for the marriage of a child.
- Bereavement Leave: an employee is entitled to leave of 5 days for the death of a spouse or child, 2 days for the death of a parent of sibling or in law and 1 day for the death of a grandparent. The calculation for this type leave is based on 2 average national net salaries.
- Adoption or birth: an employee is entitled to leave of 2 days for the adoption or birth of a child.
Military Leave: Employees are entitled to paid leave in cases where the employee has been drafted as a military conscript or in activities related to national defense, protection, and rescue duties.
Employer taxes
Termination
Termination Process
Employers can terminate a fixed term contract for the following reasons: business, personal, or worker misconduct. This requires notice and a written explanation for the termination. If the reason is misconduct, a warning needs to be given with the employee given a chance to explain his/her actions.
“Business” reasons (also called “redundancy” or “technological excess”) are NOT an option for EOR terminations. Personal reasons require a warning and then a period granted for the worker to adjust/improve so terminations like that last at least 45 days (15 days following a warning and then 30 day notice). Misconducts such as failure to appear at work without any reason stated for 3 consecutive days or theft, improper behavior, damages, etc. may constitute grounds for immediate dismissal.
| Salary payment interval / date | Final payment on termination | Bank account/payment-method requirement |
|---|---|---|
| Monthly pay is standard practice in North Macedonia. | At termination, the employer must pay all owed wages, accrued leave and any severance (where applicable) as of the date of termination. While settlement is required “as of the day of termination” for severance pay (see Article 97 for certain cases), a universal “within X days after termination” deadline for all payments is not clearly specified in publicly accessible sources. | The modal practice is payment via bank transfer into the employee’s personal bank account; cash payments are uncommon and generally discouraged. |
Notice Period
The minimum notice period is 30 days’ unless the parties agree upon a different length, up to a maximum notice period of 3 months. During probation, workers can terminate with 3 days’ notice and the employer can terminate at end of the probation period.
Severance Pay
Only required in certain scenarios such as redundancy.
In cases of redundancy, employers should provide:
- up to five years of employment – up to one net salary
- five to ten years of employment – two and a half net salaries
- ten to 15 years of employment – three and a half net salaries
- 15 to 20 years of employment – four and a half net salaries
- 20 to 25 years of employment – six net salaries
- over 25 years of employment – seven net salaries
The basis for calculating the remuneration is the average net salary of the employee in the last six months before the dismissal. This should not be less than 50.00% of the average net salary paid per employee.
The latest amendment of the Labour Law in 2022 has removed the possibility of extending the validity of the employment contract above the age of 64 based on an employee’s statement. According to the latest amendment, all employees who reach the age of 64 must retire, and no further extension of the employment will be possible.
Although the amendment removes the possibility of extension of the employment, it does not change the position of the law on pension and disability insurance which enables female employees to opt for retirement at the age of 62. The employment of workers who have already been granted extension until the adoption of the latest amendment will remain valid until 30 June 2022.
Probation Period
Probation is not required but to 4 months maximum can be used.
Immigration
To employ a foreigner in North Macedonia, the appropriate visa must be approved before any appointment/employment. The most frequently requested types of visas are C Type (Short-Term) Visas.
Depending on the purpose of the visit that is limited to 90 days or less in 180 days to North Macedonia, a foreigner can obtain one of the following visa types:
North Macedonia Touristic Visa: A North Macedonia tourist visa is issued for international tourists planning to visit the country for sightseeing purposes and is the most issued type of visa for North Macedonia. A North Macedonia tourist visa can be obtained through consulates, authorized visa companies, or authorized travel agencies is possible.
North Macedonia Business or Fair Participation Visa: A North Macedonia business visa is a short-term visa required for individuals or groups seeking to attend meetings, training, or business-related fairs without labor or gainful employment.
North Macedonia Short-Term Education or Internship Visa: A North Macedonia short-term education or internship visa is issued for students who intend to study for educational purposes. The applicant must include documents of sufficient means of subsistence, proof of adequate accommodation, and an admission letter from the receiving institution.
D Type (Long-Term) Visa
North Macedonia category D visas are required for stays that exceed three months with varying purposes in North Macedonia even if the applicant’s nationality is on the visa-free list. It is possible to apply for a long-term visa to North Macedonia if you are one of the following:
- A student planning to study at a higher education institution for the purposes of a language course or a long-term internship
- An employee going to work for a North Macedonia-located business or for seasonal employment
- An academic, researcher, or scientist seeking to work in a certified North Macedonia research center
- An individual whose first-degree family member is a North Macedonia citizen
- A patient going to receive long-term medical treatment in a North Macedonian medical institution
- A private entrepreneur who is a founder of a registered legal entity that will provide economic benefit to North Macedonia
Minimum Wage
General
The minimum wage in Macedonia is 22,567 MKD per month.
MINIMUM WAGE (PER MONTH)
VAT
General
The standard rate of VAT in Macedonia is 18.00%.
Stay up to date on payroll & employment law changes
See how Papaya can help you automate your global payroll or EoR whilst staying 100% compliant with local labor laws
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 7 January 2026 | Wednesday | Orthodox Christmas Day | Standard holiday |
| 20 March 2026 | Friday | Ramazan Bajram (Eid al-Fitr) | |
| 13 April 2026 | Monday | Orthodox Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 24 May 2026 | Sunday | St. Cyril and St. Methodius Day | Standard holiday |
| 25 May 2026 | Monday | St. Cyril and St. Methodius Day Holiday | |
| 2 August 2026 | Sunday | Ilinden (Republic Day) | Standard holiday |
| 3 August 2026 | Monday | Ilinden Holiday | |
| 8 September 2026 | Tuesday | Independence Day | Standard holiday |
| 11 October 2026 | Sunday | Day of the Macedonian Uprising | Standard holiday |
| 12 October 2026 | Monday | Day of the Macedonian Uprising Holiday | |
| 23 October 2026 | Friday | Day of the Macedonian Revolutionary Struggle | Standard holiday |
| 8 December 2026 | Tuesday | St. Clement of Ohrid Day | Standard holiday |
Questions & Answers