Employer of Record in North Macedonia

An Employer of Record, or EOR, is a company that legally hires employees on your behalf in another country. If you want to hire someone in North Macedonia but you don't have a legal entity there, an EOR is a straightforward solution. The EOR handles all the legal and HR tasks that come with employment. This includes payroll, taxes, benefits, and making sure you follow all of North Macedonia's labor laws. This leaves you free to focus on managing your employee's day-to-day work and growing your business. For EOR services, you can work with a provider like Rivermate.

How an Employer of Record (EOR) Works in North Macedonia

Using an EOR in North Macedonia simplifies the process of hiring talent in the country. Here is how it typically works:

1. You Find the Talent: You identify the person you want to hire in North Macedonia. You manage the interview and selection process.
2. The EOR Hires Your Candidate: Once you have made your choice, the EOR legally hires the employee through its local entity in North Macedonia.
3. Compliant Contracts are Created: The EOR creates an employment contract that complies with North Macedonian labor laws. This contract will outline the terms of employment, including salary and job duties.
4. Onboarding is Handled: The EOR manages the onboarding process for your new employee, ensuring all necessary paperwork is completed correctly.
5. Payroll and Benefits are Managed: The EOR takes care of all payroll responsibilities. This includes calculating salary, withholding taxes, and making social security contributions as required by law. They also administer employee benefits.
6. You Manage the Employee: While the EOR handles the legal and administrative side of employment, you manage your employee's daily tasks and responsibilities.

Why use an Employer of Record in North Macedonia

Using an EOR is a practical way to build a team in North Macedonia without the time and expense of setting up your own local company. It allows you to enter the market quickly and legally, giving you a competitive edge in securing top talent.

Here are some key reasons to use an EOR:

• Avoid Creating a Legal Entity: You can hire employees in North Macedonia without going through the complex and costly process of establishing a local business entity.
• Ensure Legal Compliance: EORs are experts in local labor laws. They make sure that your hiring practices, contracts, and payroll are all fully compliant with North Macedonian regulations, reducing your legal risks.
• Simplify HR and Administration: The EOR handles all the administrative burdens of employment. This includes payroll processing, tax filings, and managing benefits, which saves you time and internal resources.
• Offer Competitive Benefits: An EOR can provide your employees with access to local benefits packages, including health insurance. This helps you attract and retain the best talent in the market.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in North Macedonia includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in North Macedonia.

Hiring in North Macedonia can be a great way to tap into a skilled and dedicated workforce. The country's labor laws are designed to be straightforward, balancing employee rights with the needs of your business. Whether you're looking for full-time employees or flexible contractors, understanding the local employment landscape is key. This guide will walk you through the essentials of building your team in North Macedonia.

Employment contracts & must-have clauses

When you hire an employee in North Macedonia, you must provide a written employment contract. This document is the foundation of your relationship and needs to be clear and compliant with local laws. You can use two main types of contracts: indefinite and fixed-term. Indefinite contracts are the standard for permanent roles, while fixed-term contracts are for temporary work and cannot exceed five years.

Your employment contracts must include these key details:

• Party details: Full names and contact information for both you and the employee.
• Job information: The employee's title and a clear description of their responsibilities.
• Work location: Where the employee will be based.
• Start date: The official first day of employment.
• Contract duration: If it's a fixed-term contract, specify the end date.
• Compensation: Details on the salary, including any bonuses or allowances.
• Working hours: The expected daily and weekly work schedule.
• Leave entitlement: Information on paid time off and other types of leave.
• Termination conditions: The notice period and process for ending the contract.

Probation periods

You can include a probation period in your employment contracts to see if a new hire is a good fit. This trial period is optional but can be useful for both you and the employee. The maximum length of a probation period is typically six months. During this time, the notice period for termination is shorter, usually a minimum of three days.

Working hours & overtime

The standard work week in North Macedonia is 40 hours, typically broken down into eight-hour days, five days a week. If you need an employee to work more than their standard hours, this is considered overtime.

Here's what you need to know about overtime:

• Limits: Overtime is limited to eight hours per week and 190 hours per year.
• Compensation: You must pay employees a higher rate for overtime hours.
• Bonuses: Employees who work more than 150 hours of overtime in a year and have been absent for less than 21 days are entitled to a bonus.

Public & regional holidays

Your employees in North Macedonia are entitled to paid time off for public holidays. Planning for these days off is important for managing your projects and deadlines.

Here are the public holidays for 2025:

Hiring contractors in North Macedonia

Working with independent contractors can give you access to specialized skills without the commitment of a full-time hire. Contractors manage their own taxes and social security contributions, which can simplify things for your business. However, it's crucial to classify your workers correctly.

Misclassifying an employee as an independent contractor can lead to serious problems, including fines, back taxes, and other penalties. The authorities will look at the actual working relationship, not just the contract. They consider factors like how much control you have over the worker's schedule and methods.

An Employer of Record (EOR) can help you avoid these risks. When you partner with an EOR, they become the legal employer for your workers in North Macedonia. This means they handle all the administrative and legal responsibilities, including:

• Compliant contracts: Ensuring all employment agreements meet local labor laws.
• Payroll and taxes: Managing salary payments and all necessary deductions.
• Benefits administration: Providing statutory benefits to your employees.

By using an EOR, you can confidently build your team in North Macedonia while staying compliant with all local regulations.

Navigating compensation and payroll in North Macedonia requires a clear understanding of the local regulations. You need to know the typical payment schedules, how wages are structured, and the mandatory contributions for both your company and your employees. This guide breaks down the key elements to help you stay compliant and manage your payroll effectively.

Payroll cycles & wage structure

In North Macedonia, the payroll cycle is typically monthly. You'll usually pay your employees at the end of each month for the work performed during that month. Payments are almost always made by bank transfer directly to the employee's bank account.

As an employer, you are responsible for calculating and withholding mandatory social contributions and personal income tax from the employee's gross salary. You must provide each employee with a pay slip that details the gross salary and all deductions.

While not required by law, a 13th-month salary or an annual bonus is a common practice to offer additional compensation, often paid at the end of the year.

Overtime & minimums

The standard workweek in North Macedonia is 40 hours, based on an 8-hour workday. Any work performed beyond these standard hours is considered overtime. Overtime is paid at a higher rate, and there are limits to how many overtime hours an employee can work.

The government sets a statutory minimum wage that is periodically reviewed and adjusted. You are legally required to pay at least this amount to all full-time employees. As of 2024, the minimum wage is MKD 22,567 per month.

Employer taxes and contributions

You are responsible for paying several social security contributions on behalf of your employees. These are calculated based on the employee's gross salary.

Employee taxes and deductions

Employees also contribute to social security and pay personal income tax, which you deduct from their gross salary.

In North Macedonia, your employee benefits package is a mix of legally required leave and contributions, plus other perks you can offer to attract top talent. The system is built on a foundation of social security that covers pensions, healthcare, and unemployment. On top of that, employees have a right to paid time off for vacation, sickness, and major life events.

Statutory leave

Here are the types of paid leave required by law in North Macedonia.

• Annual Leave: Employees get a minimum of 20 working days of paid annual leave. This can go up to 26 days depending on their years of service and employment contract.
• Sick Leave: Employees are entitled to paid sick leave. The employer covers the first 30 days. After that, the Health Insurance Fund takes over payment. The amount paid depends on the length of the leave.
• Maternity Leave: Expecting mothers are entitled to nine months of paid maternity leave. This can be extended to 15 months for multiple births.
• Paternity Leave: Fathers can take seven days of paid leave.
• Other Paid Leave: Employees can get up to seven additional days of paid leave for events like marriage or the death of a family member.

Public holidays & regional holidays

Employees are entitled to paid days off for public holidays.

Typical supplemental benefits

To stay competitive, many companies offer more than the legal minimum. Here’s a look at both required and common extra benefits.

How an EOR can help with setting up benefits

Setting up a benefits plan 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. This means you don't have to set one up yourself. They handle the administrative and legal requirements of managing employee benefits.

Here's what an EOR can do:

• Ensure Compliance: An EOR makes sure your benefits package meets all of North Macedonia's labor laws.
• Administer Benefits: They manage everything from enrolling employees in health insurance to tracking paid leave.
• Offer Competitive Packages: EORs have local market knowledge. They can help you create a benefits plan that attracts and retains the best employees.
• Simplify Payroll: An EOR handles all payroll deductions for social security and other benefits.

By using an EOR, you can quickly and compliantly build a team in North Macedonia without getting bogged down in local regulations.

When an employment relationship ends in North Macedonia, you need to follow a structured process. You cannot terminate an employee at will; there must be a just cause. The termination process requires clear, written communication and adherence to legally mandated timelines. This ensures fairness and transparency for both you and your employee.

Notice periods

You must provide a written notice period before termination. The minimum notice period is one month. If you are terminating more than 150 employees, or 5% of your total workforce, the notice period extends to two months.

For employees with longer service, the notice period may be longer, as stipulated in their employment contract or a collective agreement.

• Up to 5 years of service: 1 month
• More than 5 years of service: 2 months

In cases of serious misconduct, such as theft or unexcused absences of three consecutive days, you can terminate the employment contract without a notice period.

Severance pay

Severance pay is not always mandatory. It is required when you terminate an employee for business reasons, like redundancy. The amount of severance depends on the employee's length of service with your company.

The average salary is calculated based on the employee's earnings in the last six months.

How Rivermate handles compliant exits

We make sure every termination is handled correctly and compassionately. We manage the entire offboarding process, ensuring full compliance with North Macedonian labor law.

Here’s how we help:

• Documentation: We prepare and deliver all necessary legal documents, including the written termination notice.
• Calculations: We accurately calculate final pay, including any outstanding salary, unused vacation days, and applicable severance.
• Communication: We facilitate clear communication between you and the employee to ensure a smooth transition.
• Compliance: We stay up-to-date with all legal requirements to protect you from the risk of wrongful dismissal claims.

We handle the complexities of offboarding so you can focus on your business.

Getting the right visas and work permits in North Macedonia is key to your global expansion. The process involves a few steps, but it's straightforward when you know what to expect. For anyone looking to work in the country long-term, you'll need a combination of a visa to enter and a permit to work and live there.

Employment visas & sponsorship realities

To legally work in North Macedonia, you need a work permit and a long-stay visa, known as a Type D visa. The work permit is the official document that allows you to be employed. The Type D visa allows you to enter the country for the purpose of employment.

Here's a breakdown of the typical process:

• Your employer starts the process. They apply for a work permit on your behalf in North Macedonia.
• You apply for a visa. Once the work permit application is in progress, you'll use that documentation to apply for a Type D visa at the nearest North Macedonian embassy or consulate in your home country.
• Travel to North Macedonia. With your visa approved, you can travel to the country.
• Get your residence permit. Upon arrival, you must register with the local police within 24 hours. After that, you'll complete your application for a temporary residence permit with the Ministry of Interior.

An Employer of Record (EOR) can sponsor work permits for foreign employees. This means you don't need to set up your own legal entity in North Macedonia to hire talent. An EOR handles the entire process, from the work permit application to ensuring compliance with local labor laws.

Business travel compliance

If you're traveling to North Macedonia for short-term business, the rules are simpler.

For many nationalities, including citizens of the United States and European Union countries, you don't need a visa for business trips or tourism for up to 90 days within a six-month period.

During these short stays, you can attend meetings, conferences, and negotiate contracts. However, you cannot engage in actual employment. For any work-related activities, you'll need a proper work permit and visa.

All foreign citizens, regardless of whether they need a visa, must register with the local police within 48 hours of arriving in North Macedonia. You'll also need to have proof of travel medical insurance when you enter the country.