Employer of Record in North Macedonia

Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.

However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.

Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.

Businesses can only operate smoothly in North Macedonia if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in North Macedonia below, to avoid any compliance issues.

Employment Contract Requirements

In North Macedonia, employment contracts can be either indefinite or definite, with the latter not exceeding a duration of 5 years. Regardless of the type, the agreement must be documented in writing and should include the following information:

• Identification of both parties
• Starting date (and duration for temporary contracts)
• Workplace, working hours, and distribution
• Job description, duties, and responsibilities
• Provisions on job risks disclosed by employer
• Basic salary (including allowance and benefits)
• Leave regulations
• Probation period (if applicable)
• Reference to regulations on employment conditions

Onboarding Process

We can help you get a new employee started in North Macedonia quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.

For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in North Macedonia

In North Macedonia, the standard workweek is 8 hours per day and 40 hours per week. Sunday is now a non-working day for most workers according to the 2022 Labour Law amendments.

Overtime in North Macedonia

Overtime in North Macedonia is authorised in urgent situations, capped at 8 hours per week (190 hours annually). The rate, established by the collective agreement, is not less than 135% of the standard hourly rate. Employees exceeding 150 hours yearly without more than 21 days of absence are entitled to bonuses.

Probation Period in North Macedonia

In North Macedonia, there is no mandatory probation period, but a maximum period of 4 months can be implemented if necessary.

Global expansion shouldn't mean losing time to paperwork or dealing with complicated, country-specific HR systems. An Employer of Record helps you keep your focus on talent by handling the operational side of employment in North Macedonia. That includes onboarding, contract management, payroll processing, and statutory compliance, all aligned with local laws and best practices. The EOR guarantees that employees are legally employed and properly supported from day one.

This streamlined setup allows you to prioritize recruiting the best people and integrating them into your company culture. Your team stays lean, and you avoid getting caught up in the details of local processes or shifting regulations. For founders, global hiring managers, or HR teams working across borders, an EOR multiplies your impact, reducing admin time, preventing errors, and helping ensure that new hires have a smooth experience from the get-go.

Fiscal Year in North Macedonia

1 January - 31 December is the 12-month accounting period that businesses in North Macedonia use for financial and tax reporting purposes.

Payroll Cycle in North Macedonia

The payroll cycle in North Macedonia is usually monthly, with employees being paid on the last day of the month.

Minimum Wage in North Macedonia

As of April 1, 2025, North Macedonia's net minimum wage is set at MKD 24,400 per month. This rate applies to all workers, and the government periodically reviews and adjusts it based on inflation and economic conditions.

Bonus Payments in North Macedonia

In Macedonia, it is customary to receive a 13-month salary. To qualify, an employee must have worked over 150 hours beyond regular hours and not been absent for more than 21 days. The payment is equivalent to one month's salary and is provided at the end of the year.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 0% on top of the employee salary in North Macedonia.

Employee Payroll Tax Contributions

In North Macedonia, the typical estimation for employee payroll contributions cost is around 28%.

Individual Income Tax Contributions

Income tax in North Macedonia follows a progressive rate structure, with various factors like household status and the number of children potentially influencing the overall tax rates.

Pension in North Macedonia

In North Macedonia, the retirement age is 64 for men and 62 for women, with a minimum of 15 years of pension service. Employers must terminate the employment contract at retirement age. The pension system includes Mandatory Pension and Disability Insurance, Mandatory and Voluntary Fully-Funded Pension Insurance, and the Family Survivor's Pension.

Hiring in North Macedonia means taking on local payroll obligations, which often include unique tax rates, contribution rules, and strict documentation. If you're not familiar with the system, or don't have a local entity, it’s easy to make mistakes. That’s where an Employer of Record ccomes in. The EOR manages payroll for your team on your behalf, ensuring every process is accurate, timely, and legally compliant.

Key Ways an EOR Supports Payroll in North Macedonia:

• Full Legal Compliance: Ensures all payments, deductions, and filings meet country-specific requirements.
• Payroll Setup & Processing: Handles salary calculations, tax withholdings, and local reporting obligations.
• Statutory Benefit Contributions: Pays into required social programs and manages country-mandated benefits.
• Employee Documentation: Generates compliant contracts and manages hiring and termination paperwork.
• Local Currency Payouts: Delivers salaries in local currency, avoiding delays or exchange rate issues for employees.

In North Macedonia, work permits and visas are essential for employers hiring foreign workers. The process involves submitting applications, meeting specific eligibility requirements, and ensuring compliance with local labor regulations. Key visa types include the Type D Long-Stay Visa, designed for work and long-term stays exceeding 90 days; the Temporary Resident Visa, suitable for various purposes including self-employment; and the Personal Work Permit, tailored for self-employed individuals or business owners.

Work permits are typically issued for one year but may align with the duration of the employment contract, with some permits valid for up to 5 years depending on the type. Employers are responsible for sponsoring work permits and ensuring all necessary documentation, such as proof of qualifications, health insurance, accommodation proof, and a clean criminal record, is provided. Understanding these requirements and procedures is crucial for hiring foreign talent in North Macedonia.

Mandatory Leave Entitlement in North Macedonia

The annual leave entitlement in North Macedonia is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In North Macedonia

North Macedonia observes 11 national holidays in a calendar year:

Paid Time Off in North Macedonia

In North Macedonia, employees accrue 20 days of annual paid leave after 5 years, with an additional day granted for every extra 5 years, reaching a maximum of 26 days after 30 years of service. The leave can be taken in mutually agreed segments, with one period lasting at least 2 weeks.

Maternity Leave In North Macedonia

In North Macedonia, pregnant employees are entitled to 9 months of paid maternity leave (extended to 15 months for multiple births), covered by Social Security. The leave can commence 45 days before the due date, provided a pregnancy certificate is submitted to the employer, and concludes up to 28 days before the due date.

Paternity Leave In North Macedonia

Fathers in North Macedonia are entitled to 7 days of paid paternity leave.

Sick Leave In North Macedonia

In North Macedonia, sick pay varies based on the duration of sickness. For absences up to 7 working days, employees receive 70% of their regular salary rate. This increases to 80% for up to 15 days and 90% for periods exceeding 15 days. Employers cover sick leave for up to 30 days, with the Health Insurance taking over for the remaining days.

Parental Leave In North Macedonia

In North Macedonia, if the female employee does not use parental leave, it can be utilised by the father or the child's adoptive parent. Following pregnancy, childbirth, and maternity leave benefits, female employees are eligible for unpaid maternity leave lasting up to 3 months, until the child turns 3 years old. This leave can be taken in three parts.

Marriage Leave

An employee in North Macedonia is entitled to up to 3 days of paid leave for marriage.

Bereavement Leave

An employee in North Macedonia is entitled to up to 7 days of paid bereavement leave following the death of an immediate family member.

When hiring across multiple countries, maintaining consistency in how you deliver employee benefits quickly gets tricky. Each country, including North Macedonia, has its own legal rules, cultural norms, and contribution systems. An Employer of Record helps you strike the right balance between global structure and local compliance. They take over the complexity of delivering benefits that are aligned with North Macedonia’s legal requirements and competitive with local market expectations.

From ensuring statutory benefits are in place to managing local onboarding timelines and enrollment systems, the EOR provides a seamless experience for both employer and employee. This makes it easier to grow your team across borders without reinventing your benefits process in each new location. You stay in control of your overall benefits strategy, while the EOR takes care of executing it in a way that works legally and culturally in North Macedonia. It’s a smarter way to scale benefits globally without losing local relevance.

Termination Process in North Macedonia

In North Macedonia, employers cannot terminate employment at-will; terminations must be justified with just cause. Compliant terminations include:

1. Voluntary employee resignation
2. Mutual agreement
3. Unilateral decision by employer (based on probation period, objective reasons, disciplinary dismissal, or unsuitability for job)
4. Contract expiration

Notice Period in North Macedonia

In North Macedonia, the minimum notice period is 1 month, with a maximum of 3 months. During the probation period, employees can terminate with 3 days' notice, and employers can terminate at the end of the probation period.

Severance in North Macedonia

In North Macedonia, all employees facing redundancy are entitled to severance pay, with the amount varying based on the length of service:

1. 5 years of service: up to 1 net salary
2. 5-10 years of service: two and a half net salaries
3. 10-15 years of service: three and a half net salaries
4. 15-20 years of service: four and a half net salaries
5. 20-25 years of service: six net salaries
6. More than 25 years of service: seven net salaries