Key Takeaways for Hiring in North Macedonia
- Payroll operates on a monthly cycle, with salaries paid no later than 15 days after the end of the pay period and a flat 10% income tax applied to employment income.
- Social insurance contributions are employee-funded, while employer payroll costs remain aligned with gross salary.
- Employees are entitled to at least 20 working days of paid annual leave, 11 public holidays, paid sick leave, and extended maternity and paternity protections.
- Termination is permitted with or without cause, subject to notice requirements, severance obligations, and strict documentation standards, while mutual terminations must be formally agreed and hand-signed to remain valid.
Continent
Europe
Capital
Skopje
Currency
Macedonian Denar (MKD)
Language
Macedonian
Payroll Cycle
Monthly; employers must pay salaries within 15 days after the end of the pay period, or on the next working day if the deadline falls on a non-working day.
Pay Date
5th of the following month
North Macedonia Employment Contract Overview
Below is the core structure we use when preparing compliant employment contracts for hires in Macedonia, covering the key statutory terms employers must define from day one.
Maximum duration: Four months.
For seasonal or short-term roles, shorter probation periods (as short as three days) may apply.
What Do You Need To Include In A North Macedonian Employment Contract?
To avoid compliance issues in North Macedonia, your employment contract needs to cover a few mandatory points.
Employee Information
- Full name
- ID number
- Role / Job title
- Start date
- Contract duration
- Working hours
- Probation and notice conditions
- Termination provisions
- Compensation details
How Does Payroll Work in North Macedonia?
Payroll in North Macedonia involves calculating gross salary, deducting employee taxes and social security contributions, and remitting employer-side contributions to the relevant government authorities.
Salary Structure
Salaries in North Macedonia are typically paid monthly. Employers are responsible for withholding income tax and employee social contributions at source.
Employer Taxes & Contributions
Employers in North Macedonia must contribute to social security and other statutory funds on top of the employee’s gross salary. Specific rates are set by the relevant government authority.
Employee Deductions
Employee-side deductions include income tax and employee social security contributions. The exact rates depend on the employee’s salary level and applicable tax brackets.
Mandatory Employee Benefits In North Macedonia
Employment of expats is supported in North Macedonia.
| Benefits | Provider | Funded Through | Notes |
|---|---|---|---|
| Health Insurance | Government |
Payroll Contributions |
Covers medical care, hospitalization, and basic health services |
| Pension/Social Security | Government |
Payroll Contributions |
Provides retirement pensions, disability benefits, and survivor benefits. |
| Other Statutory Benefits | Government |
Payroll Contributions |
Unemployment Insurance provides temporary income support for unemployed individuals. Occupational Injury and Additional Health Insurance cover workplace injuries and occupational health risks. |
Termination And Offboarding in North Macedonia
Ending employment in North Macedonia must follow clearly defined legal procedures to ensure both the employer and employee meet their obligations.
Whether termination happens through resignation, dismissal, or mutual agreement, compliance with the Labour Law is essential to avoid disputes and ensure a smooth offboarding process.
| Type | Possible? |
|---|---|
| Termination for Cause (poor performance, misconduct, etc.) | Yes |
| Termination without Cause | Yes |
| Mutual Termination Agreement (MTA) | Yes |
| Redundancy | Not possible under the EOR setup |
North Macedonia Employee Resignation
Notice
Form
Employees must submit their resignation to the employer in writing.
Notice period
Standard employees must give at least one month’s notice.
Payment in lieu of notice or notice waiver
The employer and employee may mutually agree to waive or shorten the notice period. In that case, either party may compensate the other for the unworked notice period instead of completing it.
End-of-Service Benefits
Severance/Gratuity
Employees who resign voluntarily are not typically entitled to severance, unless the employment contract or a collective agreement provides otherwise.
Other Benefits
-
Employers must pay out any accrued but unused annual leave as part of the final settlement.
-
Any outstanding salary, bonuses, or contractually agreed payments must also be settled.
-
The employer remains responsible for settling all tax and social security contributions through the final payroll.
Termination Documentation
Employers must provide:
-
Written confirmation acknowledging the resignation
-
A final payslip showing gross salary, deductions, unused leave, and final amounts paid
-
A certificate of employment or work record, if the employee requests it
Employer Termination With Cause in North Macedonia
Acceptable grounds
-
Serious misconduct by the employee
-
Repeated violation of work obligations or company rules
-
Endangerment of safety or health at the workplace
-
Criminal activity affecting the employer or work
-
Breach of confidentiality or other contractual obligations
-
Other cases defined by law or collective agreements
Notice
Form
Before dismissal for performance-related issues, the employer must issue a written warning clearly outlining the shortcomings, improvement expectations, and measurable criteria. The employee must be given at least 15 days to improve. A written termination notice stating the grounds is required.
Notice period
Termination with cause can be immediate; no standard notice period is required unless the employment agreement provides otherwise.
Payment in lieu of notice or notice waiver
Not applicable.
End-of-Service Benefits
Severance
Employers generally do not owe severance in cases of termination for cause, unless the contract or collective agreement states otherwise.
Other Benefits
-
Employee is entitled to payment for unused accrued annual leave and any earned wages up to the termination date or a written confirmation on the unused annual leave to be issued that can be used by the employee to the next employer.
-
Other contractual benefits may apply only if specified in the employment contract or collective agreement.
Termination Documentation
-
Written notice of termination stating grounds for dismissal
-
Final payslip including salary and accrued leave payment
-
Certificate of employment/work record if requested by the employee
Employer Termination Without Cause in North Macedonia
Notice
Form
Employers must notify employees of termination in writing.
Notice period
The standard notice period is one month, though longer periods may apply under collective agreements or employment contracts.
Payment in lieu of notice or notice waiver
Employers may choose to pay the employee instead of requiring them to work through the notice period.
End-of-Service Benefits
Severance
-
Employees terminated without cause are generally entitled to severance pay, calculated based on length of service.
-
In practice, this is often equivalent to one month’s salary per year of continuous service, unless otherwise agreed.
Other Benefits
Payment of unused accrued annual leave
Payment of earned bonuses or salary
Settlement of tax and social security obligations
Termination Documentation
Written termination notice
Final payslip including severance and leave
Certificate of employment upon request
Mutual Termination Agreements in North Macedonia
A mutual termination agreement is a voluntary arrangement between the employer and employee to end the employment contract by mutual consent. It is based on the Labour Law of the Republic of North Macedonia, which allows both parties to terminate employment outside the standard notice or cause-based procedures.
Notice
Form
The agreement must be in writing and hand-signed by both parties, including handwritten names and dates. If the effective date falls on a non-working day or during approved leave, the agreement must be signed on the next working day.
Notice period
The parties may freely agree on the termination date. No statutory minimum applies.
Waiver of notice
Both parties may fully waive notice or agree on a shorter or longer notice period.
End-of-Service Benefits
Severance
Severance is not automatic, but the parties may negotiate a severance package as part of the agreement.
Other Benefits
-
Payment for unused accrued annual leave or issuing a written confirmation on the unused annual leave to be issued that can be used by the employee to the next employer.
-
Any contractual bonuses or pending salary
-
Social security and tax obligations must be settled by the employer as part of the final payroll
Termination Documentation
-
Signed mutual termination agreement specifying the effective date. The MTA must be hand-signed by both parties, including a wet signature, the handwritten full name, and the date, in order to be legally valid.
-
Final payslip including salary, any negotiated severance, and accrued leave
-
Certificate of employment/work record upon employee request
Offboarding Process for the End of Fixed-term Contracts in North Macedonia
If the Fixed-Term Contract Ends Normally
Notice
No notice is required when a fixed-term contract expires naturally, unless the contract or collective agreement states otherwise.
End-of-Service Benefits
Severance/Gratuity
Severance is not usually payable, unless expressly agreed.
Other Benefits
- Payment for unused accrued annual leave or issuing a written confirmation on the unused annual leave to be issued that can be used by the employee to the next employer.
- Any earned contractual bonuses or outstanding wages
- Social security and tax obligations are settled by the employer in the final payroll
If the Employer Terminates Early
Notice
Written notice is required. Minimum notice period is generally 1 month, unless the contract specifies otherwise or termination is for cause.
End-of-Service Benefits
Severance/Gratuity
Employees may be entitled to severance pay if termination is without cause, calculated based on length of service and contractual or collective agreement provisions.
Other Benefits
- Payment for unused accrued annual leave
- Any earned wages or contractual bonuses
- Social security and tax obligations are settled as part of the final payroll
Final Payment Timing & Immigration and Visa Compliance in North Macedonia
Final Payment Deadline
Employers must settle all outstanding wages, accrued leave, and contractual payments no later than the employee’s last working day or immediately upon termination.
Penalty
Late payment may result in statutory interest and enforcement action by the Labour Inspectorate. Employees may file formal complaints to recover unpaid amounts.
Visa and Immigration Compliance
- Foreign employees must ensure that their work and residence permits remain valid until the end of employment.
- Employers are required to notify the authorities (e.g., Ministry of Labour and Ministry of Interior) when employment of a foreign national ends.
- Employees may need to adjust their visa status or leave the country within the period allowed by their permit if they are no longer employed.
- Failure to comply with visa or work permit rules can result in fines or legal issues for both employer and employee.
Supporting Guides
Frequently Asked Questions
Why is employer cost listed as 0%?
In North Macedonia, all social insurance contributions are employee-funded and deducted from gross salary. You don’t pay additional employer contributions on top of the agreed gross salary—the total employment cost equals the gross salary itself. This is unusual compared to most countries where employers pay separate social security contributions.
What are employees actually paying in social contributions?
Employees pay 28% total in mandatory contributions deducted from gross salary: 18.8% for pension and disability insurance, 7.5% for health insurance, 0.5% for additional health insurance (work-injury related), and 1.2% for unemployment insurance. Combined with the flat 10% income tax, total deductions are significant.
What’s required for a mutual termination agreement to be valid?
The agreement must be hand-signed by both parties with wet signatures, including handwritten full names and dates. If the effective date falls on a non-working day or during approved leave, it must be signed on the next working day. Without these specific formalities, the mutual termination may not be legally valid.
Do I have to give a warning before terminating for performance issues?
Yes. Before dismissal for performance-related issues, you must issue a written warning clearly outlining the shortcomings, improvement expectations, and measurable criteria. The employee must be given at least 15 days to improve. Only after this process can you proceed with termination with cause.
How is severance calculated for termination without cause?
Severance is generally equivalent to one month’s salary per year of continuous service, unless your employment contract or collective agreement specifies a different formula. This can add up significantly for long-tenured employees.
