Employer of Record in Republic of North Macedonia

General Information

• Currency: Macedonian denar, MKD
• Employer Taxes:
• Payroll Frequency: Monthly
• Employee Costs:
• Capital: Skopje
• Fiscal Year: 1 January – 31 December

Main Aspects of the Labour Code

Minimum Wage

General: As of 2023, the minimum wage in the Republic of North Macedonia is approximately €330 per month, or about 21,000 MKD. This amount is subject to periodic adjustments by the government, so it’s advisable to check for the most current figures or any upcoming changes.

Payroll

Payroll Cycle: In the Republic of North Macedonia, the typical payroll cycle is monthly. Employers usually pay their employees at the end of each month, often by the last working day.

Here are some key points regarding payroll in North Macedonia:

Payroll Reporting: Employers must submit payroll reports to the relevant authorities, including details on income tax and social security contributions.

Payment Timing: Salaries are generally disbursed at the end of the month for work performed during that month.

Deductions: Employers are responsible for withholding taxes and social security contributions from employee salaries.

13th Salary

In the Republic of North Macedonia, the concept of a 13th salary (or a bonus equivalent to one month’s salary) is not mandated by law. However, it is a common practice among some employers to provide a 13th salary as a form of additional compensation, often paid at the end of the year or during holiday seasons.

Key Points:

1. Voluntary Benefit: The 13th salary is generally offered at the discretion of the employer and may be included in collective bargaining agreements or employment contracts.
2. Payment Timing: If provided, it is typically paid out in December or at another agreed-upon time.
3. Tax Implications: The 13th salary is subject to income tax and social security contributions, similar to regular salary payments.

If you’re considering employment terms or negotiating contracts in North Macedonia, it’s good to clarify whether a 13th salary is part of the compensation package.

Working Hours

In the Republic of North Macedonia, the standard working hours are generally set at 40 hours per week, typically distributed across five days (Monday to Friday), with an 8-hour workday.

Key Points:

1. Overtime: Any work beyond the standard 40 hours is considered overtime and usually requires additional compensation, typically at a higher pay rate.
2. Rest Periods: Employees are entitled to breaks during their workday. The law typically mandates a 30-minute break for shifts longer than 6 hours.
3. Holidays: Employees are entitled to paid public holidays, and working on these days usually entitles employees to additional compensation.
4. Annual Leave: Employees are also entitled to a minimum of 20 working days of annual leave.

Leave

Annual Leave (Vacation):

In the Republic of North Macedonia, employees are entitled to a minimum of 20 working days of paid annual leave (vacation) per year. Here are some key points regarding annual leave:

Payment upon Termination: If an employee leaves the company, any accrued but unused vacation days are usually compensated in the final paycheck.

Eligibility: Employees earn vacation days based on their length of service. For example, employees with longer tenure may receive additional days beyond the minimum.

Accrual: Annual leave typically accrues throughout the year and can usually be taken after an employee has completed a certain period of employment, often after the first three months.

Scheduling: Employees must request their annual leave in advance, and employers should approve leave based on operational needs.

Carry Over: If unused, vacation days may be carried over to the following year, but there may be limits on how long they can be carried over.

Public Holidays

Sick Days

In the Republic of North Macedonia, employees are entitled to sick leave under certain conditions. Here are the key points regarding sick days:

1. Sick Leave Duration: Employees can take sick leave for the duration of their illness, supported by a medical certificate from a healthcare provider.
2. Compensation: Sick pay is typically provided through the social security system. For the first 20 days of sick leave, employees usually receive around 70% of their salary. After 20 days, the compensation may vary.
3. Notification: Employees must notify their employer as soon as possible about their illness and provide the necessary medical documentation.
4. Job Protection: Employees are generally protected from dismissal while on sick leave, ensuring they can return to their position after their recovery.
5. Accrual of Leave: Sick leave does not usually affect an employee’s annual leave entitlement.

For the most accurate and current details, it’s advisable to check with local labor laws or consult with HR professionals in North Macedonia.

Maternity Leave

In the Republic of North Macedonia, maternity leave is designed to support new mothers during and after pregnancy. Here are the key points regarding maternity leave:

1. Duration: Maternity leave typically lasts for 12 months. It can be taken before and after the birth, with at least 6 months of leave to be taken after the birth of the child.
2. Payment: During maternity leave, mothers are generally entitled to receive compensation through the social security system, usually around 100% of their salary for the first 6 months and a percentage thereafter.
3. Eligibility: To qualify for maternity leave benefits, mothers must have contributed to the social security system for a specified period prior to the birth.
4. Notification: Pregnant employees must inform their employer about their pregnancy and intended maternity leave, typically providing at least 15 days’ notice.
5. Job Protection: Employees are entitled to return to their job or an equivalent position after their maternity leave ends.

For the most accurate and current details regarding maternity leave, it’s advisable to consult local labor laws or resources from the social security office in North Macedonia.

Paternity Leave

In the Republic of North Macedonia, paternity leave provides fathers with time to support their partners and bond with their newborns. Here are the key points regarding paternity leave:

1. Duration: Fathers are entitled to 15 days of paid paternity leave, which can be taken within the first month following the birth of their child.
2. Payment: During paternity leave, fathers typically receive compensation through the social security system, which is usually a percentage of their salary.
3. Eligibility: To qualify for paternity leave, the father must be recognized as the child’s parent and generally needs to have contributed to the social security system.
4. Notification: Fathers should inform their employers of their intention to take paternity leave, ideally providing advance notice.
5. Job Protection: Employees are generally protected from dismissal during their paternity leave and are entitled to return to their position after the leave period ends.

For the most accurate and current information regarding paternity leave, it’s advisable to consult local labor laws or resources from the social security office in North Macedonia.

Taxation

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