North Macedonia Employment Law & Compliance Guide for Employers
Key employment laws in North Macedonia: what employers need to know
Employment in North Macedonia is governed mainly by the Закон за работните односи [Law on Labour Relations], with contributions, income tax and foreign workers covered by separate laws. Foreign employers are often surprised that all social contributions (28% in total) come out of the employee’s gross salary, that new hires must be registered with the Employment Service Agency at least one day before they start, and that severance depends on years of service. This page summarises the core employer rules for 2026 with official sources.
North Macedonia employment rules at a glance
| Topic | What the rule is | Official source |
|---|---|---|
| Minimum wage | MKD 38,507 gross a month for full-time work (Eurostat, July 2026), roughly MKD 26,000 net. It is adjusted every March under the Minimum Wage Law; before the March 2026 adjustment it was MKD 36,037 gross. | Eurostat – Monthly minimum wages, bi-annual data (earn_mw_cur) |
| Standard working hours | Full-time work is 40 hours a week, normally spread over 5 days. Shorter full-time hours apply only where a law or collective agreement provides for them, for example in hazardous jobs. | Employment Service Agency – Labour laws (Law on Labour Relations) |
| Overtime pay | Overtime is capped at 8 hours a week and 190 hours a year. It must be paid at an increased rate set by the law and collective agreements; the Law on Labour Relations sets a minimum uplift of 35% for overtime. | Employment Service Agency – Labour laws (Law on Labour Relations) |
| Paid annual leave | At least 20 working days a year, up to 26 working days, with the exact number set by collective agreement or contract according to service, conditions and other criteria. | Employment Service Agency – Labour laws (Law on Labour Relations) |
| Public holidays | Public holidays are paid non-working days. National ones include 1 January, 7 January, Orthodox Easter Monday, 1 May, 24 May, 2 August, 8 September, 11 October, 23 October, 8 December and the first day of Ramadan Bayram; members of particular faiths get extra days. | Employment Service Agency – Labour laws (Law on Labour Relations) |
| Sick leave | The employer pays salary compensation for the first 30 days of sick leave; from day 31 the Health Insurance Fund pays. The rate is a percentage of the salary base set by health insurance law, and 100% for a work injury. | Employment Service Agency – Labour laws (Law on Labour Relations) |
| Maternity and parental leave | Paid maternity leave lasts 9 months, or 15 months for twins or more, with compensation paid by the Health Insurance Fund. The father may use the leave if the mother does not. | Employment Service Agency – Labour laws (Law on Labour Relations) |
| Probation period | A probation period may be agreed for up to 6 months. Either party may end the contract during probation with short notice set in the contract. | Employment Service Agency – Labour laws (Law on Labour Relations) |
| Notice period | Statutory notice is generally 1 month for dismissal by the employer and for resignation. A collective agreement or the contract may set a longer notice period, up to 3 months. | Employment Service Agency – Labour laws (Law on Labour Relations) |
| Severance pay | For dismissal on business grounds: 1 net salary for up to 5 years of service, 2 for 6–10 years, 3 for 11–15, 4 for 16–20, 5 for 21–25, 6 for 26–30 and 7 for over 30 years. | Employment Service Agency – Labour laws (Law on Labour Relations) |
| Employer social contributions | None on top of gross salary. All mandatory contributions are deducted from the employee's gross pay; the employer calculates, withholds and pays them to the funds. | PwC Worldwide Tax Summaries – North Macedonia, other taxes (reviewed July 2026) |
| Employee social contributions | 28% of gross salary: 18.8% pension and disability, 7.5% health, 1.2% employment insurance and 0.5% additional health insurance. The base is at least 50% of the national average salary and at most 16 average salaries a month. | PwC Worldwide Tax Summaries – North Macedonia, other taxes (reviewed July 2026) |
| Income tax on salaries | A flat 10% personal income tax, withheld monthly by the employer on gross salary minus contributions and a personal exemption set each year. There are no progressive brackets. | Public Revenue Office (UJP) – Individuals |
| Mandatory bonuses and 13th-month pay | No 13th-month pay is required by law. A holiday allowance (регрес) and other benefits are set by the applicable collective agreement or employment contract. | Employment Service Agency – Labour laws (Law on Labour Relations) |
| Work permits for foreign nationals | Most non-EU workers need a temporary residence permit for work from the Ministry of Internal Affairs, issued after the Employment Service Agency gives a positive opinion on the employment. Separate Agency work permits cover family members and refugees. | Employment Service Agency – Employment of foreigners |
| Employment contract requirements | The contract must be in writing. The employer must register the employment with the Employment Service Agency at least one day before the employee starts, and deregister it within 8 days after it ends. | Employment Service Agency – Registration and deregistration of employment |
Employer obligations in North Macedonia, topic by topic
Filter by primary service relevance
Does an employment contract in North Macedonia have to be in writing, and how long can probation last?
How many hours can employees work in North Macedonia, and how is overtime paid?
What is the minimum wage in North Macedonia in 2026?
How much paid leave and how many public holidays must employers give in North Macedonia?
What does an employee cost in North Macedonia on top of gross salary?
How much notice and severance does an employer owe when dismissing an employee in North Macedonia?
Can a company in North Macedonia hire a foreign national, and which permit is needed?
Can a business in North Macedonia use contractors instead of employees?
Key employment laws in North Macedonia and official sources
- Law on Labour Relations (Закон за работните односи), Official Gazette 62/2005, consolidated 167/2015, as amended — Core rules on contracts, working time, leave, maternity leave, dismissal, notice and severance.
- Law on Employment and Work of Foreigners (Закон за вработување и работа на странци), Official Gazette 217/2015, as amended — Governs work permits, Agency opinions and registration of short-term work by foreigners.
- Law on Employment and Insurance in Case of Unemployment, consolidated Official Gazette 112/2014, as amended — Sets the employer’s duty to register and deregister employments with the Employment Service Agency.
- Law on Contributions for Mandatory Social Insurance (Закон за придонеси од задолжително социјално осигурување) — Sets the 28% contribution rates and the minimum and maximum contribution bases.
- Law on Personal Income Tax (Закон за данокот на личен доход) — Sets the flat 10% tax on salaries, the personal exemption and employer withholding.
FAQs: hiring employees in North Macedonia
Can a foreign company hire employees in North Macedonia without a local entity?
Not directly. Employees must be registered with the Employment Service Agency before they start, and payroll returns go to the Public Revenue Office, both of which require a registered local employer. Options are to set up a company or branch, to use an Employer of Record that employs staff through its own entity in North Macedonia, or to engage independent contractors for project work only.
How much does an employee cost in North Macedonia on top of gross salary?
Very little in statutory charges. All mandatory contributions (28% in total) and the 10% income tax are deducted from the employee’s gross salary, so the employer pays no separate social contributions on top. Extra costs come from collective agreement benefits, such as the holiday allowance, the first 30 days of sick pay and any voluntary bonuses.
What is the minimum wage in North Macedonia in 2026?
MKD 38,507 gross a month for full-time work after the March 2026 adjustment, according to Eurostat, which is roughly MKD 26,000 net. Before March 2026 it was MKD 36,037 gross. The Minimum Wage Law requires an adjustment every March, so check the figure each spring. Part-time staff receive a pro-rated amount.
How much notice and severance does an employer owe when dismissing an employee in North Macedonia?
Notice is generally 1 month for both parties and can be extended to 3 months by collective agreement or contract. For dismissal on business grounds, severance ranges from 1 net salary for up to 5 years of service to 7 net salaries for more than 30 years. Dismissal must be in writing and give the reason.
Can a company hire a foreign national in North Macedonia, and what permit is needed?
Yes. Most foreign workers need a temporary residence permit for work, issued by the Ministry of Internal Affairs after the Employment Service Agency confirms that the employment conditions are met. Employment is generally subject to an annual quota and a local labour market check. Short activities such as trade fairs or short-term services need only an Agency registration confirmation.
Is it risky to engage contractors instead of employees in North Macedonia?
Yes, if the contractor works like an employee. Work done personally, under your direction and for regular pay is employment under the Law on Labour Relations. The State Labour Inspectorate fines undeclared work, the worker can claim leave, notice and severance, and the Public Revenue Office can collect the missing contributions and tax.
Related NNRoad resources for North Macedonia: Employer of Record in North Macedonia · Payroll in North Macedonia · Hiring foreign employees in North Macedonia · Contractors and on-demand talent in North Macedonia · North Macedonia employer cost calculator
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Regulation Updates in North Macedonia
Discover the latest employment and compliance updates in Macedonia — helping you stay ahead in a changing regulatory landscape.
Declaration on Partnership and Action: Joint Commitment to the Formalization of the Informal Economy in North Macedonia
What it is: The Declaration on Partnership and Action: Joint Commitment to the Formalization of the Informal Economy in North Macedonia was signed and publicly released on 2026-02-18.
What it changes: It commits national ministries, employer organizations, trade unions, the State Labour Inspectorate, and the Public Revenue Office to coordinated measures aimed at formalizing the informal economy, including strengthened enforcement, digitalization, and inter-agency data exchange, to affect employer reporting and compliance responsibilities.
Who is affected:
- Employers
- Worker representatives (employer organizations and trade unions)
What employers should do:
- Prepare for potential changes in reporting and compliance requirements as part of the coordinated measures.
- Anticipate increased use of inter-agency data exchange and digital processes related to formalization efforts.
Notes: Effective month: 2026-02.