Employer of Record in Macedonia

North Macedonia (formerly known as Macedonia) is a landlocked country located in the Balkan Peninsula. As a core transit hub in the Western Balkans, connecting Europe to important ports around the region.

North Macedonia is not yet part of the EU, but is in the process of implementing the necessary reforms to become a member state. The country uses its own currency, the Macedonian denar, rather than the euro. Combined with low wage levels, this gives European employers access to skilled talent for lower employment costs than in EU states.

European employers can reduce employment costs by 30-60% when establishing operations in the country. The average net salary is €722, which is well below the European average. This makes the country attractive for labor-intensive operations, shared support centers, and technology hubs.

Multinational employers in North Macedonia operate in an environment of frequent statutory changes, as the country aligns with EU standards and faces economic and political pressures in the region. For companies with cross-border operations, this creates a complicated compliance landscape.

An Employer of Record (EOR) in North Macedonia can help global companies manage compliance risk and regulatory changes. By becoming the legal employer, the EOR takes responsibility for compliance. Local HR and labor experts stay up to date on changes and ensure adherence to North Macedonian labor law.

How an Employer of Record (EOR) Works in Macedonia

Partnering with an EOR in North Macedonia streamlines the hiring process. Here is how it works:

• You find your ideal candidate in Macedonia.
• The EOR legally hires the employee through their local Macedonian entity.
• The EOR drafts a compliant North Macedonia employment contract in accordance with local employment laws.
• The EOR manages all HR tasks, including payroll processing, tax compliance, and mandatory benefits.
• Your employee works for you, just like any other team member, while the EOR handles the legal and administrative responsibilities.

Why use an Employer of Record in Macedonia

An EOR is an alternative to setting up a local legal entity and managing payroll, taxes and benefits administration yourself. This makes international employment simpler and faster.

• Enter the market faster. You can hire employees in days, not the months it takes to set up a legal entity.
• Ensure full compliance. EORs are experts in Macedonian labor laws, which are overseen by the Ministry of Labour and Social Policy. They ensure your hiring practices comply with the Labor Relations Law.
• Reduce costs. Avoid the significant costs and time required to establish a legal entity in Macedonia.
• Simplify payroll and HR. The EOR manages all payroll calculations, tax withholdings, and statutory benefits for your Macedonian employees.
• Mitigate risks. The EOR assumes the legal responsibility for employment, reducing your risk of non-compliance with local laws.

The labor market in North Macedonia is characterized by high youth unemployment and the outward migration of skilled professionals, creating talent shortages. As a countermeasure, the Macedonian government encourages multinationals to employ nationals with favorable tax rates and business-friendly hiring and trade policies.

North Macedonia’s digital economy is entering a stage of accelerated growth, creating new opportunities for investors across ICT, energy, finance, and services. As a result, the hiring of IT professionals, BPO agents, data analysts, project managers and manufacturing specialists is becoming more popular.

The employment relationship is regulated by the Labor Relations Law, which has been undergoing changes to align it with EU best practices. These changes can affect employment contracts and mandatory benefits from time to time, thereby increasing compliance risk for foreign employers. Employment contracts should be specific to North Macedonian employment regulations and reviewed regularly to ensure compliance.

Employment contracts & must-have clauses

You must provide a written employment contract to your employees in North Macedonia. The contract can be for a fixed term, not to exceed five years, or for an indefinite period. Keep two copies of the contract: one for the employee and one for your business premises.

Your employment contracts should include the following:

• Parties Involved: Names and details of both the employer and employee.
• Start Date: The official start date of employment.
• Job Details: A description of the role and responsibilities.
• Workplace: The location where the work will be performed.
• Compensation: The basic salary and any other benefits, stated in Macedonian denar.
• Working Hours: Details on the daily and weekly work schedule.
• Leave: Information on annual leave and other types of leave.
• Probation Period: If applicable, the duration of the probation period.

Probation periods

You can include a probation period in the employment contract, which can last up to six months. During this period, the minimum notice for termination is three days.

Working hours & overtime

The standard workweek in North Macedonia is 40 hours, typically eight hours per day, five days a week.

• Breaks: Employees working more than six hours a day get a 30-minute lunch break.
• Rest Periods: Workers must have at least 12 hours of rest between workdays and a minimum of 24 hours of rest per week.
• Overtime: Overtime is allowed up to eight hours per week and 190 hours per year. You should approve overtime in advance and specify the overtime pay rate in the employment contract.

Public & regional holidays

Your employees in North Macedonia are entitled to time off for public holidays. Some holidays are for all citizens, while others are specific to certain religious or ethnic communities.

Date	Holiday Name	For
Jan 1	New Year's Day	All citizens
Jan 7	Orthodox Christmas Day	All citizens
Mar 20	Eid al-Fitr	All citizens
Apr 13	Orthodox Easter Monday	All citizens
May 1	Labour Day	All citizens
May 24	Saints Cyril and Methodius' Day	All citizens
Aug 2	Republic Day	All citizens
Sep 8	Independence Day	All citizens
Oct 11	Day of the Macedonian Uprising	All citizens
Oct 23	Day of the Macedonian Revolutionary Struggle	All citizens
Dec 8	Saint Clement of Ohrid Day	All citizens
Jan 6	Orthodox Christmas Eve	Orthodox citizens
Jan 19	Epiphany	Orthodox citizens
Apr 10	Good Friday (Orthodox)	Orthodox citizens
Apr 6	Easter Monday	Catholic citizens
Nov 1	All Saints' Day	Catholic citizens
Dec 25	Christmas Day	Catholic citizens

This is a list of major holidays for 2026 and may not be exhaustive. Dates for some holidays may vary each year.

Hiring contractors in Macedonia

Non-standard forms of employment have increased in North Macedonia in recent years due to digitalisation. This includes the use of contractors and remote workers. Under Macedonian law, contractors are viewed as self-employed and fall under the Civil Code. This can create a worker classification risk for employers that needs careful management.

If a contractor is deemed to be an employee in disguise, your company could face significant penalties. This includes back payments for taxes, social contributions, and employee benefits.

To determine if a worker is a contractor or an employee, authorities look at factors like:

• Control: Do you dictate their work hours and methods?
• Integration: Is the worker part of your core business operations?
• Exclusivity: Does the worker provide services only to your company?
• Tools: Do you provide the tools and equipment for the work?

Mitigating this risk requires the careful application of employment and civil law. By hiring a contractor through a Contractor of Record service, your company can avoid a misclassification risk.

A significant compliance risk in global workforce management is payroll, taxes and mandatory employee benefits. For employers, this means adherence to the current minimum wage of €423, as well as pension and health insurance contributions and unemployment insurance payments.

Employers often offer additional benefits to attract top talent nationwide. One of the most common benefits is a 13th-month salary, most often paid in December.

Payroll cycles & wage structure

In North Macedonia, you pay your employees monthly. Payments are typically made at the end of the month for the work completed during that month. You should pay your employees through a bank transfer, as cash payments are not common for formal employment.

Beyond the basic salary, it is common to provide additional compensation. This can include:

• A mandatory meal allowance.
• Bonuses for holidays or based on performance.
• A 13th-month salary is a common practice.

Overtime & minimums

The standard work week is 40 hours, based on an 8-hour day. Any work beyond this is considered overtime. Overtime is limited to 8 hours per week and 190 hours per year. You must pay employees a premium for overtime hours, typically at least 135% of their standard hourly rate. For work on weekends or holidays, the premium is generally 150% of the standard rate.

As of April 2025, the net minimum wage in North Macedonia is MKD 24,400 per month. The government adjusts this rate based on economic conditions and inflation.

Employer taxes and contributions

As an employer, you are responsible for paying social security contributions on behalf of your employees. These contributions are calculated based on the employee's gross salary.

Contribution Type	Rate
Pension and Disability Insurance	18.8%
Health Insurance	7.3%
Unemployment Insurance	1.2%

Employee taxes and deductions

You must withhold taxes and social security contributions from your employees' gross salaries.

Contribution Type	Rate
Pension and Disability Insurance	18.8%
Health Insurance	7.5%
Additional Health Insurance	0.5%
Employment Insurance	1.2%
Personal Income Tax	10% (flat rate)

In North Macedonia, your employee benefits and leave are a mix of government-mandated entitlements and extra perks that companies offer. The Labor Law sets the foundation, making sure you get essentials like paid time off and social security. Many companies, especially larger and international ones, provide additional benefits to attract and keep the best talent.

Statutory leave

The law in North Macedonia requires employers to provide several types of paid leave.

• Annual Leave You get a minimum of 20 working days of paid vacation each year. This can increase to a maximum of 26 days based on how long you've worked for the company. You are eligible for this leave after six months of continuous work with the same employer.
• Sick Leave If you're sick, your employer pays for the first 30 days. The amount you receive depends on how long you are out, starting at 70% of your regular pay for the first 7 days and increasing to 90% after 15 days. After 30 days, the Health Insurance Fund takes over the payments.
• Maternity Leave Mothers get nine months of paid maternity leave for a single child and 15 months for multiple births. This is covered by social security.
• Paternity Leave Fathers are entitled to 7 days of paid leave.
• Other Paid Leave You can also take paid time off for specific life events. This includes up to 7 days for the death of an immediate family member and up to 3 days for marriage.

Public holidays & regional holidays

You get paid time off for national holidays. If a holiday falls on a Sunday, the following Monday is a non-working day.

Date	Holiday
January 1	New Year's Day
January 7	Orthodox Christmas Day
April 21	Orthodox Easter Monday
May 1	Labour Day
May 24	Saints Cyril and Methodius' Day
August 2	Republic Day
September 8	Independence Day
October 11	Day of the Macedonian Uprising
October 23	Day of the Macedonian Revolutionary Struggle
December 8	Saint Clement of Ohrid Day

Typical supplemental benefits

Companies in North Macedonia offer a range of benefits. Some are required by law, while others are voluntary perks to create a more attractive job offer.

Statutory Benefits	Non-Statutory Benefits
Pension and Disability Insurance	Private Health Insurance
Health Insurance	Meal Vouchers or Allowances
Unemployment Insurance	Performance Bonuses
Severance Pay	Company Car
Paid Annual Leave	Gym Memberships or Wellness Programs
Paid Sick Leave	Additional Paid Time Off
Maternity and Paternity Leave	Professional Development and Training
Public Holidays	13th Month Salary/Annual Bonus

How an EOR can help with setting up benefits

Setting up a competitive and compliant benefits package in a new country can be complex. An Employer of Record (EOR) simplifies this process for you.

An EOR already has a legal entity in North Macedonia, so you don't need to set one up. They handle all the administrative work of managing employee benefits. This includes everything from enrolling employees in mandatory social security programs to sourcing and managing supplemental benefits like private health insurance.

Using an EOR ensures that you comply with all local labor laws regarding benefits and leave. They stay up-to-date on any legal changes so you don't have to. This saves you time and reduces risk, allowing you to focus on growing your business and supporting your team.

Foreign employers will find the North Macedonian labor regulations more flexible than in Central or Western Europe, but this flexibility does not apply to terminations. A structured termination process must be followed for both voluntary resignations and dismissals.

A notice of termination must be handed to an employee in person. A monetary compensation can be agreed with an employee instead of a notice period in North Macedonia. The Macedonian Labor Act establishes the principle that employers must comply with local labor laws, unless otherwise stipulated in bilateral agreements.

Notice periods

When you terminate an employment contract, you must provide a written notice period. The law sets minimums, but your employment contract can specify a longer period.

Length of Service	Minimum Notice Period
Up to 5 years	1 month
More than 5 years	2 months

In some situations, like serious employee misconduct, you may not need to provide a notice period. For employees on probation, the notice period is typically shorter, often around one week.

Severance pay

Severance pay is not always required. It mainly applies when you terminate an employee for business reasons, like redundancy. Severance is not usually necessary for terminations due to employee misconduct. When it is required, the amount is based on the employee's years of service with your company.

How Rivermate handles compliant exits

Navigating employee terminations in another country can be complex. We handle the entire offboarding process to ensure you comply with all of North Macedonia's labor laws.

• We manage the paperwork. We prepare and deliver all necessary documents, including the written termination notice.
• We ensure proper procedure. Our team makes sure you have a valid reason for termination and that you follow all legal steps.
• We calculate final pay. We handle the final salary, any accrued vacation time, and severance pay if applicable.

By managing the process, we help you minimize risks and ensure a fair and compliant exit for your employees.

North Macedonia encourages the employment of nationals due to its high youth unemployment rates and the outflow of skilled professionals. Therefore, immigration quotas may apply to certain sectors in the country.

A foreign national can work in North Macedonia by obtaining both a work permit and a residency permit. This application must be made by the employer after a formal employment contract has been signed. This process takes around 4 to 8 weeks.

Foreign professionals performing specialized work on projects can obtain a visa for up to 60 days, without a full work permit.

Employment visas & sponsorship realities

To legally work in North Macedonia, you need both a work visa to enter the country and a work permit that authorizes your employment. The most common route for long-term employment is the Type D visa.

An Employer of Record (EOR) can help you navigate this process, but there are some practical things to know.

What an EOR can typically sponsor:

• Work permits for new hires: An EOR can act as your legal employer in North Macedonia and sponsor work permits for employees with a valid job offer.
• Temporary residence permits: Once you have a work permit, the EOR can assist with the application for a temporary residence permit, which is necessary for living and working in the country.

What an EOR generally cannot sponsor:

• Visas without a job offer: You need a confirmed job offer from a North Macedonian employer before you can start the visa process.
• Permanent residency: The path to permanent residency usually requires five years of continuous legal residence in North Macedonia, which is something you would apply for individually after meeting the requirements.

Practical Routes for Employment:

1. Job Offer: Secure a job offer from a company in North Macedonia.
2. Work Permit Application: The employer will then apply for a work permit on your behalf with the Employment Agency of the Republic of North Macedonia.
3. Type D Visa: Once the work permit is approved, you can apply for a Type D visa at the North Macedonian embassy or consulate in your home country.
4. Arrival and Registration: Upon arriving in North Macedonia, you must register with the local police within 24 hours.
5. Residence Permit: After registering with the police, you will need to apply for a temporary residence permit from the Ministry of Interior.

Business travel compliance

For short-term business trips, the rules are different. You do not always need a long-stay visa.

• Short-Stay Visa (Type C): This visa is for visits up to 90 days and is suitable for business meetings, conferences, or other short-term work-related activities.
• Certificate of Employment: For work that will not exceed 90 days, you may be able to work based on a certificate of employment.

It is important to understand the purpose of your visit to choose the correct visa. If you are attending a business meeting, a Type C visa may be enough. However, if you are planning to perform work, even for a short period, you may need a short-term work permit. Always check the specific requirements based on your nationality and the nature of your visit.