North Macedonia has a straightforward payroll structure that makes it one of the more approachable hiring destinations in the Western Balkans. There’s no employer-side social contribution, the personal income tax rate is a flat 10%, and the rules around pay frequency and filings are clearly defined. That said, getting the mechanics right matters. This guide walks you through everything you need to know to run compliant payroll for employees based in North Macedonia.
How payroll works in north macedonia
North Macedonian payroll is built around a monthly cycle with strict submission and payment deadlines. Before you can pay your first employee, you’ll need to register the new hire with the relevant authorities. That registration must happen before employment begins, not after. Once employment is underway, the monthly payroll process involves calculating gross pay, deducting employee social contributions and income tax, submitting calculations to the Public Revenue Office (PRO), and then paying net salaries.
Payslip requirements
You’re required to provide each employee with a payslip every pay period. The payslip must show gross pay, all deductions itemized, and net pay. Keep records of these, as they’re part of your compliance trail with the PRO.
New hire registration
Before an employee’s first day, you’ll need to complete registration with the relevant authorities. This isn’t a formality you can handle retroactively, so build it into your onboarding checklist before any work begins.
Pay frequency and employment contracts
North Macedonia uses a monthly pay cycle. Salaries are due within 15 days after the pay period ends, and the standard pay date is the 5th of the following month. You’ll want to build your internal payroll calendar around that deadline to stay compliant.
Employment contracts
All employment contracts must be written in Macedonian. Bilingual contracts are acceptable if you need to provide a version in another language for the employee’s reference, but the Macedonian text is the legally binding one. Contracts should clearly set out the terms of employment before work begins.
Probation and fixed-term limits
The maximum probation period is 4 months. Fixed-term contracts can run for a maximum of 5 years. Beyond that, continued employment would typically need to be structured as an indefinite-term arrangement.
Working hours
Standard working hours are 40 hours per week, structured as 8 hours per day, Monday through Friday.
Payroll taxes and contributions
North Macedonia’s contribution structure is notable for one reason in particular: employers don’t pay any additional payroll tax on top of gross salaries. All social contributions are funded entirely from the employee’s gross pay. This keeps your total cost of employment predictable and limited to the agreed gross salary.
Employee social contributions
Employee contributions total 28% of gross salary and are withheld at source by the employer. The breakdown is:
- Pension and disability insurance: 18.8%
- Health insurance: 7.5%
- Employment (unemployment) insurance: 1.2%
- Additional health contribution: 0.5%
These contributions are calculated on gross salary before any other deductions and are remitted to the PRO by the 15th of the month following the pay period.
Employer social contributions
There are no employer-side social contributions in North Macedonia. Your payroll cost is the gross salary you’ve agreed with the employee, nothing more.
Income tax withholding
North Macedonia uses a flat personal income tax (PIT) rate of 10%. The taxable base isn’t simply the gross salary. You first deduct the employee’s social contributions, then apply a monthly personal deduction of MKD 10,932, and then apply the 10% rate to what remains.
To illustrate how the calculation flows: take the gross salary, subtract the 28% social contributions, subtract the monthly personal deduction of MKD 10,932, and multiply the result by 10%. That final figure is the PIT amount withheld from the employee’s pay.
The PIT withheld, along with the social contributions, is submitted to the PRO by the 15th of the month following the pay period.
Payroll compliance and filings
Staying compliant in North Macedonia means hitting two key obligations on time every month: submitting payroll calculations and remitting contributions and taxes.
Submission before payment
You’re required to submit your payroll calculations to the Public Revenue Office before paying net salaries to employees. This is a sequencing requirement, not just a reporting formality. The PRO effectively receives your calculations first, and net salary payments follow. Build this step into your process so you’re not caught paying before filing.
Monthly filing deadline
Both social contributions and PIT must be submitted to the PRO by the 15th of the month following the pay period. Since the standard pay date is the 5th of the following month, your filing timeline will typically look like this: calculate and submit to the PRO, pay net salaries around the 5th, and confirm final submission by the 15th.
13Th month and bonuses
There’s no statutory requirement for a 13th-month salary or any mandatory bonus payments in North Macedonia. Any bonus arrangements are entirely discretionary unless you’ve contractually committed to them. If your employment contract includes a bonus clause, that clause is binding.
Minimum wage
From March 1, 2026, the minimum wage is MKD 38,507 per month gross, which translates to MKD 26,046 per month net. Make sure any salary you set is at or above this floor.
How an EOR handles north macedonian payroll
If you’re hiring in North Macedonia without a registered legal entity there, an Employer of Record (EOR) is typically the fastest and most reliable path forward. The EOR becomes the legal employer on record, handling all the steps described in this guide on your behalf.
That includes registering new hires before their start date, running monthly payroll calculations, submitting filings to the PRO before each pay cycle, remitting contributions and tax by the 15th, and issuing compliant payslips. You retain day-to-day management of the employee’s work, and the EOR handles the legal and administrative layer.
For teams hiring across multiple countries, this approach also keeps your payroll process standardized. Rather than managing separate entities, filing calendars, and local compliance requirements in each market, you’re working through a single platform with local expertise built in.
If you want to see how RemotePass handles payroll in North Macedonia and other markets, you can request a demo at remotepass.com/request-demo.
