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Hiring in North Macedonia? Read on to find out the employment norms (like taxes, payroll and benefits) and EOR (Employer on Record) norms in North Macedonia.
Employment Norms in North Macedonia
North Macedonia is a country located in the Balkans region of Europe with a population of approximately 2 million people. Understanding the employment norms in North Macedonia is crucial for both employers and employees, as it provides insight into the country's labor market and regulations.
General Information:
- The North Macedonian currency is the Macedonian denar (MKD).
- Skopje is the capital of North Macedonia.
- Macedonian and Albanian are the official languages of North Macedonia. Legal documents can be drafted in Macedonian, and English to be considered legally valid.
- As of 2021, was reported to be USD 4 billion.
Labor laws and regulations in North Macedonia cover working conditions, wages, working hours, and protection against discrimination and unfair dismissal.
Table of Contents
- Agreements
- Onboarding Process
- Visa
- Minimum Wage
- Payroll Cycle
- Annual Bonus
- Health Benefits
- Working hours and overtime
- Leaves
- Social Security
- Taxes for Employers
- Taxes for Employees
- Probation
- Termination
- Severance Pay
- Employees or Contractors
- Final Words
AgreementsOnboarding ProcessVisaMinimum WagePayroll CycleAnnual BonusHealth BenefitsWorking hours and overtimeLeavesSocial SecurityTaxes for EmployersTaxes for EmployeesProbationTerminationSeverance PayEmployees or ContractorsFinal Words
Agreements
Labor-related agreements are typically negotiated between employers and trade unions. Some of the key labor-related agreements in North Macedonia include:
- Collective bargaining agreements (CBA) between employers and trade unions, set out terms and conditions of employment, including wages, working hours, and benefits. These agreements are typically negotiated in Macedonian.
- Tripartite agreements between the government, employers, and trade unions, aim to promote social dialogue and cooperation on labor-related issues. These agreements can be negotiated in Macedonian or Albanian.
- International labor agreements, which North Macedonia has ratified, including International Labour Organization (ILO) conventions on various labor-related issues such as child labor, forced labor, and freedom of association.
- These agreements are typically drafted in English and Macedonian.
Onboarding Process
There are no established laws or regulations specific to the employee onboarding process in North Macedonia.
Some common onboarding practices include:
- Providing new employees with an employment contract, which outlines the terms and conditions of their employment.
- Conducting orientation and training sessions to introduce new hires to the company culture, policies, and procedures.
- Collecting necessary information from new employees such as personal information, bank details, and tax information.
- Issuing necessary identification cards and equipment such as uniforms, badges, and laptops.
- Informing new employees about their rights and benefits such as social security, health insurance, and paid leave.
Mandatory documents that employees must submit during the onboarding process include:
- Personal identification documents such as ID cards or passports.
- Tax identification number (TIN) certificate.
- Proof of education and qualifications.
Visa
North Macedonia has several types of visas for foreign nationals who wish to work in the country, including:
- Work visa: for individuals who have been offered employment in North Macedonia and have a valid employment contract.
- Business visa: for individuals who wish to conduct business activities in North Macedonia, but do not engage in actual work.
- Student visa: for foreign students who wish to study at a North Macedonian educational institution.
- Freelance visa: for self-employed individuals who wish to work in North Macedonia.
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Minimum Wage
As of 2023, the minimum wage in North Macedonia is MKD20,175.00 per month.
Payroll Cycle
The payroll cycle in North Macedonia is typically monthly.
Annual Bonus
There is no specific legislation in North Macedonia that requires employers to grant annual bonuses to employees. However, some employers may choose to provide bonuses as a form of incentive or reward for performance.
Health Benefits
Employers in North Macedonia are not required by law to provide health benefits to employees. Some common health benefits provided by employers in North Macedonia include:
- Private health insurance plans cover medical expenses, including hospitalization, specialist consultations, and prescription drugs.
- Sick leave allows employees to take time off work due to illness without losing pay.
- Maternity leave and benefits that provide job protection and financial support for expectant mothers.
- Health and wellness programs that promote healthy lifestyle choices, such as gym memberships or stress reduction classes.
Working hours and overtime
- Work hours: the standard workweek is 40 hours, with a maximum of 8 hours per day.
- Break: Employees are entitled to a break of at least 30 minutes after working for 6 hours.
- Overtime: The maximum number of overtime hours per week is 20, and the overtime pay rate is 1.5 times the regular hourly rate.
Leaves
Sick Leave
- An employee is entitled to paid sick leave in case of illness or injury. The number of sick leave days allowed varies depending on the length of service and the employer's policies. The general provision is 30 days per year, which is fully paid.
Parental Leave
- Employees are entitled to parental leave for the birth or adoption of a child. Both parents are entitled to take parental leave, and the length of leave varies depending on the circumstances. For the birth of a child, the mother is entitled to 9 months of leave, while the father is entitled to 15 days. In cases of adoption, both parents are entitled to 60 days of leave. Same-sex couples are entitled to the same parental leave provisions as opposite-sex couples.
Annual Leaves
- Employees are entitled to annual leave, which is typically calculated based on the length of service and the employer's policies. The general provision is 20 days per year, which is fully paid.
Public Holidays (for the Calendar year 2023)
- New Year's Day: January 1st
- Orthodox Christmas: January 7th
- International Women's Day: March 8th
- Orthodox Good Friday: April 21st
- Orthodox Easter Monday: April 24th
- Labor Day: May 1st
- Saint Cyril and Methodius Day: May 24th
- Eid al-Fitr: May 25th
- Independence Day: September 8th
- Eid al-Adha: September 3rd
- Republic Day: November 8th
- Christmas Day: December 25th
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Taxes for Employers
Employers in North Macedonia are required to pay various taxes and contributions, which include:
- Pension and disability insurance: 18.8%
- Health insurance: 7.5%
- Employment insurance: 1.2%
- Value Added Tax (VAT): The standard VAT rate is 18%.
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Taxes for Employees
In North Macedonia, employees are required to pay various taxes, which include:
- Personal Income Tax (PIT): Employees are subject to personal income tax on their earnings. The tax rate is progressive and ranges from 10% to 18%.
- up to MKD 1,080,000.00: 10%
- more than MKD 1,080,000.00: 18%
Probation
The length of the probationary period is a maximum of 6 months.
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Termination
An employment contract in North Macedonia can be terminated by either the employer or the employee.
- Termination by mutual agreement
- Termination by the employer
- Termination by the employee
Severance Pay
Employees in North Macedonia are entitled to receive severance pay in case of termination by the employer without any fault of the employee. The minimum severance pay is one-third of the employee's average monthly earnings for each year of service. However, if the termination is due to redundancy, the minimum severance pay is two-thirds of the employee's average monthly earnings for each year of service.
Employees or Contractors
- In North Macedonia, the distinction between employees and contractors is important for legal and tax purposes. Misclassifying an employee as a contractor or vice versa can have legal and financial implications.
- Employers who misclassify employees as contractors may be subject to fines and penalties, including the payment of back taxes, social security contributions, and other benefits owed to the employee. The misclassified employee may also have a legal claim for compensation, including unpaid wages and benefits.
- Individuals who work as independent contractors but are later found to be employees may be entitled to benefits and protections under labor laws, such as minimum wage, overtime, and social security contributions.
- Employers who misclassify workers as contractors may also be subject to penalties for failing to provide these benefits.
Final Words
In summary, North Macedonia has a relatively flexible and business-friendly employment regime, with a range of labor agreements, visa types, and social security provisions that offer opportunities for both employers and employees. The country has a minimum wage, standard work hours, and leave entitlements for employees, as well as provisions for overtime, sick and parental leave. Employers and employees are also subject to various taxes and social security contributions. While there are penalties for misclassifying workers, North Macedonia offers opportunities for businesses and individuals looking to work and thrive in the country.
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