How do you pay employees in North Macedonia? Monthly payroll there follows clear rules. The employer calculates gross-to-net pay, withholds social contributions and income tax, pays everything to the state together with the net salary, and files a monthly electronic return called the MPIN. This step-by-step guide explains how payroll works in North Macedonia, the key deadlines, and how foreign companies can pay staff there without a local entity.
- Basic payroll rules in North Macedonia
- Step-by-step monthly payroll
- What is the MPIN?
- Payslips and record keeping
- How foreign companies can pay employees in North Macedonia
- Frequently asked questions
Basic payroll rules
- Currency: salaries are paid in Macedonian denars (MKD), by bank transfer to the employee’s account.
- Frequency: salaries are paid at least once a month. The payday is set in the employment contract or collective agreement, often for the previous month.
- Minimum wage: from 1 March 2026, the minimum net wage is MKD 26,046 per month for full-time work.
- Payment together: the employer must pay social contributions and income tax at the same time as the net salary.
Step-by-step: monthly payroll in North Macedonia
Step 1: Register the employer and the employee
The employer must be a registered legal entity with a tax number and local bank account. Before the employee starts work, they must be registered for mandatory social insurance through the Employment Service Agency.
Step 2: Calculate gross pay
Gross pay includes the base salary plus any overtime, night or weekend work premiums, bonuses and other taxable payments for the month.
Step 3: Deduct social contributions (28%)
From gross salary, deduct pension and disability insurance (18.8%), health insurance (7.5%), unemployment insurance (1.2%) and the additional work injury contribution (0.5%). Contributions are calculated on a base of at least 50% of the national average gross salary and are capped at 16 times the average.
Step 4: Calculate personal income tax (10%)
Subtract the contributions and the monthly personal allowance of MKD 10,932 from gross pay, then apply the flat 10% tax rate. For a full example, see our article on the cost of hiring an employee in North Macedonia.
Step 5: File the MPIN and pay
Submit the monthly MPIN return to the Public Revenue Office, then pay the net salary to the employee and the contributions and tax to the state.
What is the MPIN?
The MPIN (monthly calculation of contributions and personal income tax) is an electronic return submitted through the Public Revenue Office’s e-system. It lists each employee’s gross salary, contribution base, contributions and tax withheld. The PRO uses it to credit each employee’s pension, health and unemployment records. The return is generally filed by the 10th of the month following the payroll month, and late or incorrect filings can lead to penalties and gaps in employees’ insurance records.
Part of the pension contribution goes into the employee’s personal account in a private, fully funded pension fund (the “second pillar”), so accurate monthly reporting matters to employees.
Key payroll deadlines
| Task | Timing |
|---|---|
| Register new employee for social insurance | Before the first working day |
| Pay net salary | At least monthly, on the agreed payday |
| Pay contributions and income tax | At the same time as the net salary |
| Submit MPIN return | Monthly, generally by the 10th of the following month |
| Deregister on termination | When employment ends |
Payslips and record keeping
Employees should receive a written salary calculation (payslip) showing gross pay, each contribution, income tax, allowances and net pay. Employers must also keep payroll records and employment contracts, and track working hours, overtime and leave in line with the Law on Labour Relations. Payslips are usually issued in Macedonian, and international employers often add an English version.
Common payroll mistakes to avoid
- Agreeing on a net salary without calculating the gross cost
- Forgetting the minimum contribution base for part-time or low-paid staff
- Paying salary without paying contributions at the same time
- Missing holiday allowance or overtime premiums required by collective agreements
- Paying a full-time worker as a “freelancer” from abroad
How can foreign companies pay employees in North Macedonia?
A company registered abroad cannot run Macedonian payroll on its own, because it is not registered with the Public Revenue Office as an employer. You have three options:
- Employer of Record (EOR): a local provider employs and pays your staff on your behalf. This is ideal if you have no company in North Macedonia.
- Payroll outsourcing: if you have a local entity, a payroll provider runs calculations, MPIN filings and payslips for you.
- Contractor payments: only suitable for genuine independent contractors.
Frequently asked questions
Q: Can I pay my North Macedonia employee from my overseas bank account?
A: Not as a regular employee, because contributions and tax must be withheld and reported locally through the MPIN. Use an EOR or a local entity instead.
Q: Is payroll in North Macedonia complicated?
A: The rules are clear, but there is little room for error. Contributions must be paid together with salary, and every month must be reported correctly.
Q: What is the difference between payroll outsourcing and an EOR?
A: With payroll outsourcing, you remain the legal employer. With an EOR, the provider is the legal employer and handles contracts, payroll and compliance.
Let NNRoad handle your payroll in North Macedonia
NNRoad pays employees in North Macedonia accurately and on time, files MPIN returns and manages HR compliance through our Employer of Record service in North Macedonia. Email [email protected] to get started.
This article is for general information only and does not constitute legal or tax advice. Rules are current as of 2026 and may change.