Salary Calculator
North Macedonia

Salary calculator for North Macedonia estimates both gross and net income by considering key financial elements such as salary, taxes, and social contributions. It starts with the gross salary, which includes base pay, bonuses, and other compensations. The calculator then applies the applicable tax rates and social security contributions. Once all deductions are accounted for, the net salary is displayed, representing the actual amount an employee takes home after taxes and contributions.

In North Macedonia, both employers and employees contribute to salary-related costs through taxes and social security contributions. Employees pay income tax at a progressive rate of 10% or 18%, depending on their annual earnings. Additionally, mandatory social security contributions include 18.8% for pension and disability insurance, 7.5% for health insurance, and 1.2% for unemployment insurance, all deducted from gross salary.

Employers also bear costs, contributing approximately 28% of the employee’s gross salary to social security. Beyond these mandatory expenses, many companies offer additional benefits such as bonuses, private health insurance, and professional development support, which further impact overall salary costs. Understanding these expenses is essential for both businesses and employees when planning salaries and budgets.

North Macedonia has a progressive income tax system with two tax brackets:

-A 10% tax rate applies to annual income up to 1,080,000 MKD.
-An 18% tax rate applies to annual income exceeding 1,080,000 MKD.

This means that lower-income earners pay a smaller percentage in taxes, while those earning above the threshold contribute at a higher rate. Employees also contribute to mandatory social security payments, which are deducted from their gross salary. These contributions include:

-18.8% for pension and disability insurance, ensuring financial support in retirement or in case of disability.
-7.5% for health insurance, which grants access to North Macedonia’s public healthcare system.
-1.2% for unemployment insurance, which provides financial assistance to workers in case of job loss.

In addition to personal income tax, regional and municipal taxes may apply in certain cases, though these are typically minimal. Employers must also calculate their share of social security contributions, which significantly impact total salary costs.

North Macedonia provides a comprehensive set of employment benefits to support workers’ well-being. Employees are entitled to a minimum of 20 days of paid annual leave, ensuring sufficient time for rest and personal commitments. Public holidays are also observed, and employers must compensate employees accordingly if they work on these days.

For new parents, North Macedonia offers generous maternity and paternity leave benefits. Maternity leave lasts nine months, or 12 months in cases of multiple births or complications, with compensation covered by the social security system. Fathers are also entitled to paternity leave, although the length and conditions may vary.

Health insurance is mandatory, allowing employees access to the public healthcare system. While public healthcare is widely available, many employers offer private health insurance as an additional benefit to provide faster access to medical care and specialised treatments.

Employers in North Macedonia often provide supplementary benefits to attract and retain employees. These benefits may include performance-based bonuses, professional development opportunities, additional pension contributions, and transportation allowances.

Beyond salary and standard benefits, employers in North Macedonia incur additional employment costs that affect payroll budgeting. Employers must contribute to social security payments, which typically amount to around 28% of an employee’s gross salary.

Some industries offer extra incentives, such as end-of-year bonuses, commissions, or profit-sharing schemes. Depending on the company, employees may also receive training allowances, conference sponsorships, or wellness programmes to support their professional and personal development.

Understanding the difference between gross and net salary is essential for both employees and employers in North Macedonia. Gross salary refers to the total amount agreed upon before any deductions, including income tax and social security contributions. This is the figure typically advertised in job offers and employment contracts.

Net salary, on the other hand, is the actual amount an employee receives after all mandatory deductions have been applied. These deductions include income tax, pension contributions, health insurance, and unemployment insurance. The net salary represents the worker’s take-home pay, which they can use for living expenses, savings, or personal investments.

For employers, gross salary is only part of the total employment cost, as they must also cover employer contributions to social security and other potential benefits. As a result, the total cost of hiring an employee is higher than the gross salary alone. By using the Native Teams salary calculator, both employees and employers can gain clarity on these figures and plan their finances accordingly.