Payroll & Employment Guide North Macedonia flag

Payroll & Employment Guide North Macedonia

North Macedonia is fast becoming a strategic hiring destination in the Balkans, offering a skilled, multilingual workforce at competitive employment costs. Its growing digital infrastructure, EU-aligned reforms, and favourable tax rates make it a promising hub for companies looking to expand into Southeastern Europe.

Payroll & Employment Guide North Macedonia
CurrencyMacedonian Denar (MKD)
LanguagesMacedonian, Albanian
Minimum wage36,037 MKD/month
Employment cost28%
Working hours40 hours per week
VAT18%
Probation periodUp to 4 months
Paid leave days20-26 days per year
Categories

Hiring guide

North Macedonia, located in the heart of the Balkans, offers international employers a stable, cost-effective hiring landscape. Labour laws are aligned with European standards, and the local workforce is known for its professionalism, language skills, and adaptability.

Get details on North Macedonia’s employment laws, tax obligations, and cost structures in our complete hiring guide before expanding.

Learn more

Employment contracts

In North Macedonia, employment contracts must be in written form and must clearly define job duties, salary, benefits, and termination terms. These contracts can be for a fixed or indefinite period and are regulated by the Labour Relations Law.

Notice periods: Up to 2 months, depending on role and tenure.

Termination of employment: Can be initiated by either party but must follow legally defined procedures, especially outside of the probation period.

Want to learn more about employment contracts in North Macedonia? Get our full template now!

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Employee benefits

Employers are legally required to offer mandatory employment benefits, and often add extra perks to stay competitive. Understanding both is key to attracting and retaining top talent in North Macedonia.


Mandatory benefits: Social security (covers healthcare, pensions, unemployment benefits, and disability assistance).
Common perks: Performance bonuses, transportation and meal allowances, holiday pay, flexible working hours, professional development, health and wellness programs.

Leave policies: Annual leave, sick leave, maternity leave, paternity leave, parental leave, paid leave.

Want to learn more about all the employee benefits available in North Macedonia?

Taxes

North Macedonia has a flat personal income tax system, with additional mandatory social contributions shared between the employee and employer.

  • Personal income tax: A flat rate of 10% on gross salary.
  • Corporate tax: A flat rate of 10% on company profits.
  • Value Added Tax (VAT): 18%
  • Social security contributions: Both employees and employers contribute, covering health, pension, and unemployment insurance.

Payroll

Payroll processing in North Macedonia must adhere to timelines and legal reporting standards. Employers are responsible for calculating, withholding, and paying taxes and social contributions on behalf of their employees.

Salary payment deadline: Legally by the 15th of the next month; Native Teams processes by the 5th to enhance employee satisfaction

Taxes and contributions payment deadline: Monthly, submitted to the Public Revenue Office

Payroll declarations deadline: Monthly, in alignment with salary payments

Payroll currency: MKD (with EUR sometimes used for reporting)

EOR services

Using EOR services in North Macedonia allows you to legally employ individuals in the country without opening legal entities there. The EOR takes over all the legal responsibilities as an official employer, including:

  • Legal employment and contracts
  • Payroll processing
  • Tax withholding
  • Benefits administration
  • Onboarding/offboarding employees

PEO services

Using PEO services in North Macedonia provides HR and administrative support, while you remain the legal employer. PEO services are ideal for employers who already have legal entities in North Macedonia but need support to manage their workforce operations, including:

  • HR support and workforce administration
  • Payroll and benefits management
  • Compliance and local labour law guidance
  • Employment contracts assistance

Payroll calculator

Native Teams provides a payroll calculator adjusted per North Macedonia’s labour laws. Estimate gross-to-net salaries, tax withholdings, and employer costs in North Macedonia with our localised calculator. Designed to meet all payroll and compliance requirements.

Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.

Last update: August 11, 2025

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Frequently asked questions

Freelancers and gig workers in North Macedonia are generally considered self-employed and are responsible for managing their own taxes and social security contributions. As a client, you are not required to make contributions on their behalf. 

However, to avoid potential misclassification, it’s important that the working arrangement does not resemble an employer-employee relationship. Always ensure that you have a clearly defined contract that outlines the scope of work, deliverables, payment terms, and other key conditions.