Employer of Record in North Macedonia
Skuad’s North Macedonia Employer of Record (EOR) solution helps organizations expand into North Macedonia. Our technology-enriched Global HR platform helps in the growth of your business beyond borders without requiring to set up an entity. Whether it is hiring, onboarding, or managing payroll, Skuad experts can handle everything efficiently to expedite your expansion plans. We have a thorough understanding of the laws and policies in North Macedonia work and can ensure full compliance with the legislation. Book a demo with Skuad today.
North Macedonia at a Glance
Population: 2,083,374 (2020)
Currency: Macedonian denar (MKD)
Capital city: Skopje
Languages spoken: Macedonian and Albanian
Gross Domestic Product (GDP): USD 3,451.1 million (2021)
Employment in North Macedonia
Employment in North Macedonia is controlled by two primary documents: The Constitution of the Republic of Macedonia and the North Macedonia Labor Law.
Employment contracts in North Macedonia are either indefinite or for a fixed term and should be in the written form. Further, they should be written in the regional language. Two different employment contract copies are essential: One copy for the employee after signing the contract and another for the employer to be kept in the registered office.
Salary and other payments should be mentioned in MKD in the employment offer letter, employment contract, and other related documents. Though trade unions and collective bargaining arguments are not common in North Macedonia, you might want to check if these are applicable in your industry and incorporate them in the employment contract.
While hiring in North Macedonia, you should also be aware of the Macedonian law against discrimination. Macedonian law prohibits discrimination on the basis of the following.
- Gender
- National or ethnic origin
- Age
- Skin color
- Religion
- Disability
- Sexual orientation
- Language
- Financial status
- Trade union membership
Macedonian employment contracts should include the following details.
- Name of employer and employee
- Starting date of the job
- Job location
- Designation and job description
- Potential risk in the job, if any
- Special qualifications, expertise, or medical supervision, if required
- Terms of the contract
- Full-time or part-time employment
- Probation period
- Salary and form of payment
- Working hours and conditions
- Bonuses and other allowances
- Annual leave
- Other terms, as mutually agreed upon
Other highlights of the labor laws are as follows.
| Entitlement
|
Explanation
|
| Statutory working hours |
Employees are permitted to work for 40 hours a week and not more than eight hours a day.
|
| Overtime eligibility |
If required, overtime is allowed up to only eight hours per week (190 hours annually). The rate is set by mutual consent and is never less than 135% of the standard hourly rate of the employee.
Employees in North Macedonia are given a premium for working on weekends or holidays. The amount is agreed upon mutually and is not less than 150% of their standard hourly rate.
Additionally, employers are expected to pay a bonus if the employee has worked for more than 150 hours in a year without taking a paid leave of more than 21 days.
|
| Paid public holidays |
The public holidays in North Macedonia are as follows.
- New Year’s Day ( January 1)
- Orthodox Christmas Day (Generally on January 7)
- Labor Day (May 1)
- Orthodox Easter Monday (date may vary)
- Saints Cyril and Methodius Day (May 24 or 25)
- Ramzan Bajram ( May, date may vary)
- Day of the Republic (August 2)
- Independence Day (September 8)
- People’s Uprising Against Fascism Day (October 11)
- Day of the Macedonian Revolutionary Struggle (October 23)
- St. Clement of Ohrid Day (December 8)
|
| Holiday pay |
Employees in North Macedonia get 20 days of paid leave in a year with an option to extend the leave to 26 days by mutual agreement.
Employees are allowed to take an extra day of leave per five years of service with the same employer. Up to 26 days of leave can be availed for 30 years of continuous service.
An additional seven days would be granted for marriage, mourning, or professional examination.
|
| Medical leave |
Employees in North Macedonia can get unlimited medical leave.
Employers shall pay for the first 30 days of the leave. The payment is fixed on mutual consent.
The payment structure of medical leave in the private sector is given below.
- Days one to seven:- 70% of the average Macedonian salary
- Days eight to 15: 80 % of the average Macedonian salary
- Days 16 to 30: 90% of the average Macedonian salary
Further extension of the medical leave is sanctioned once a medical certificate is provided.
If the medical leave is extended after the 30th day, employees get payment from social security or health insurance.
|
| Maternity leave |
- Female employees can take nine months of paid maternity leave.
- Paid leave of 15 months is allowed if a female employee gives birth to multiple children.
- An employee on maternity leave is paid 100% of their salary through social security payment.
- Pregnant employees should present a medical certificate of their pregnancy. They should inform the employer about the duration of maternity leave at least 30 days in advance.
- The female employee can rejoin 45 days after the delivery or anytime that suits them, provided it is notified and mutually agreed upon.
- The father of the baby can take seven days of paid leave for the delivery. If the mother had used only part of her maternity leave, the father is allowed to take the rest.
- Mothers can take an additional three months of unpaid leave anytime until the child is three years old.
- Adoption leave of nine months is allowed for a mother who adopts a baby.
- Adoption leave of 15 months is allowed for a mother who adopts multiple babies.
|
| Annual leave accrual entitlement |
Employees in North Macedonia are entitled to enjoy 20 days of paid annual leave along with 11 paid public holidays.
|
| Leave expiry |
Leave can be taken in parts and one part can be transferred to the next year but before 30th June. |
| Leave cash out |
Employees can encash their leave at the time of termination of the contract either by employee or employer. |
| Accrued leave at termination |
Employees can encash their leave at the time of termination. Employers are expected to find a new job for the terminated employee, provide training expenses, or give severance pay.
The amount is paid considering the years of service with the employer and can be calculated on the basis of one month’s salary to six months’ salary.
|
| Employee protection and anti-discrimination rights |
Employees are entitled to get protection and anti-discrimination rights under the National Action Plan for the Implementation of the Law on the Prevention and Protection Against Discrimination 2015–2020. |
| Confidentiality of personal information |
Confidentiality of personal information of the employees is guaranteed under the Convention for the Protection of Individuals concerning Automatic Processing of Personal Data 108/81.
This law does not apply in the matter of data collected by domestic household activities or by law enforcement.
|
To learn more about North Macedonia’s employment policies and ensure your expansion efforts fall within the legal requirements, book a demo with Skuad experts today.
Contractors vs. Full-time Employees
Depending on the expansion strategy of your business and job requirements, you can decide whether to hire a contractor or a full-time employee. Before you hire a contractor or a full-time employee, you should know their associated advantages and disadvantages.
Fixed-term contracts for contractors should be in writing and extend up to five years. If the employment of the contractor exceeds the expiry of five years, the contract would become indefinite. The advantages of hiring contractors are,
- Savings in terms of employee benefits
- Short-term contracts
- Higher level of experience
- Saving on training expenses
- Lesser exposure to lawsuits
- Termination without prior notice
Full-time employees sign indefinite contracts. They enjoy the full range of benefits offered to employees in North Macedonia, including leave policies, bonuses, and insurance payouts. The advantages of hiring full-time employees are as follows.
- Can guide and monitor their work
- Higher dedication level
- Fewer chances of quitting
- Notice prior quitting
- Higher productivity
- Excellent knowledge about the subject
- Legal clarity
Whether your business requires contractors or full-time employees, Skuad’s EOR solution for North Macedonia can take care of all your hiring needs. To know more, book a demo with Skuad experts.
Hiring in North Macedonia
Whether for a fixed-term contract or indefinite contract, your business has plenty of options to hire in North Macedonia. International companies are expected to advertise their job opportunities in the local newspapers, in publications, and online. The classifieds should mention the designation, salary, and job description.
To meet compliance laws in North Macedonia, employers shall,
- Publish classifieds in newspapers such as Nova Makedonija, Vecer, and Kapital and on prominent job portals such as Vrabotuvanje.com.mk, Alma Career, and LinkedIn.
- Complete the selection process 15 days after the expiry of the job opportunity notice
- Register their employees in the national social insurance and health fund
- Give registration documents to the employees
Hiring through the job search platforms gives you multiple choices in finding the right candidates for your entity in North Macedonia. However, the culture and etiquette will be different and an awareness of the customs and regional language is necessary for hiring.
Hiring in North Macedonia not only requires going through tedious HR tasks but also needs a thorough understanding of the local labor laws. However, Skuad’s North Macedonia EOR solution can ensure the perfect handling of your hiring, onboarding, taxation, payroll, probation, and termination with full compliance. To kick-start your expansion in North Macedonia, book a demo with Skuad experts.
Probation & Termination
The probation period in North Macedonia shall not exceed four months and shall be mentioned in the written contract. An employer must give a three-day notice before terminating an employee during the probation period.
| Termination reasons and notice period (initiated by the employer) |
An employee can be terminated if they have,
- Misbehaved
- Broken the company rules
- A business-related requirement for the employer’s functioning.
The employee should be warned of termination risk once they misbehave and are given a chance for improvement for a 15-day period.
A written notice shall be given to the employee with an indefinite contract 30 days before the termination. It should mention,
- Reason for the termination
- Possibility of legal recourse
- Right to unemployment insurance
Employees on short-term contracts shall be given seven days of notice in writing.
Employees on probation shall be given a notice of three working days.
However, the employer can dismiss an employee without written notice if the employee,
- Remains absent for more than three days without informing the employer
- Misuses sick leave
- Violates health and safety rules
- Is intoxicated at work
- Stocks narcotic substances or alcohol at the workplace
- Steals from the employer
- Destroys employers property
- Discloses confidential information
Also, the employer and employee may agree on a payment instead of a notice period.
|
| Termination reasons and notice period (initiated by the employee) |
Employees shall give a one-month notice in writing before quitting from the employment.
An employee is not required to provide the reason or other information for resignation.
The notice period may extend according to the settlement between the employer and employee but never exceed three months.
However, an employee can terminate the contract if the employer,
- Delays the payment or given lesser pay than agreed in the contract
- Does not give enough safety protections
- Shows inequality in gender
- Violates certain commitments to the employees
An employee shall notify the employer in writing about any or all of the circumstances mentioned above and can terminate the contract after three days without further notice.
|
To ensure your expansion endeavors adhere to the laws regarding probation and termination in North Macedonia, talk to Skuad experts and book a demo today.
EOR Solution in North Macedonia
EOR services for North Macedonia can make your business expansion much easier. Working with Skuad’s unified employment platform enables organizations to hire and onboard their preferred talent easily, manage payroll, and remain 100% compliant with North Macedonian employment laws and taxes.
| Details
|
Explanation
|
| Minimum duration of service |
Three weeks |
| Currency accepted |
Macedonian Denar |
| Required details and documents |
For foreign employees, the following is needed.
- A passport that is valid for at least six months beyond the intended duration of stay in North Macedonia
- A copy of the information page of the passport
- A completed visa application form
- Four passport-size photos
- An employment contract with a company based in North Macedonia
- Proof of accommodations in North Macedonia
- A medical certificate stating that the applicant is in good health
- Police background check from the applicant’s country of residence
- A temporary residence application form
- A valid passport
- Proof of the applicant’s health insurance
- A copy of the applicant’s work permit application provided by the employer
On arrival, a foreign employee should submit,
- Approval of temporary residence
- Evidence of accommodation in Macedonia
- The original, certified copy of the employee’s work permit application
- A valid passport and one passport-size photo
- A criminal background check
- Proof of travel insurance
|
Payroll Outsourcing through an Employer of Record
Hiring employees from a new country is not an easy task. North Macedonia’s talent pool has immense potential and you will find suitable employees for your company. To make the journey of hiring and employee management easier, you can take the EOR route. There are many EOR companies in North Macedonia, but Skuad stands out among them. We have an integrated, high-tech HR platform and tremendous industry experience.
We can offer tailor-made EOR solutions for all your expansion needs in North Macedonia. To avail yourself of our services, speak to Skuad experts today.
Types of Visas in North Macedonia
| Work Permit Terms
|
Details
|
| Can Skuad sponsor a work permit in North Macedonia? |
Yes, Skuad can sponsor a work permit in North Macedonia.
|
| Processing time |
The processing time for a work permit is 45 days.
|
| Work permit process |
The following steps are involved in getting a work permit.
- Step 1: The employer applies for a work permit on behalf of the employee.
- Step 2: The employer sends the original copy of the application to the employee.
- Step 3: The employee submits the work application together with other related documents to the nearest Macedonian consulate.
- Step 4: Once it is approved, the employee is given a type D long-stay visa.
- Step 5: Five days after their arrival in North Macedonia, the employee submits the required documents to the Ministry of Interior Affairs to complete the application process.
- Step 6: The Ministry of Interior issues a National Temporary Residence Identity Card to the employee within 25 days.
|
| Documents needed for a work permit |
Before travel, a foreign employee should submit,
- A temporary residence application form
- A valid passport
- One passport-size photograph
- Proof of the applicant’s health insurance
- A copy of the applicant’s work permit application provided by the employer
On arrival, a foreign employee should submit,
- Approval of temporary residence from the Ministry of Interior Affairs
- Evidence of accommodation in North Macedonia
- The original, certified copy of the employee’s work permit application
- A valid passport and one passport photo
- A criminal background check
- Proof of travel insurance
|
As an EOR service for North Macedonia, Skuad takes care of all the requirements and responsibilities related to employment, including applying for and obtaining visas. Get in touch with Skuad experts to learn more.
Work Permit
Our EOR services in North Macedonia can assist you with all necessary documents to reside and work in the country.
| Work Permit Terms
|
Details
|
| Can Skuad sponsor a work permit in North Macedonia? |
Yes, Skuad can sponsor a work permit in North Macedonia.
|
| Processing time |
The processing time for a work permit is 45 days.
|
| Work permit process |
The following steps are involved in getting a work permit.
- Step 1: The employer applies for a work permit on behalf of the employee.
- Step 2: The employer sends the original copy of the application to the employee.
- Step 3: The employee submits the work application together with other related documents to the nearest Macedonian consulate.
- Step 4: Once it is approved, the employee is given a type D long-stay visa.
- Step 5: Five days after their arrival in North Macedonia, the employee submits the required documents to the Ministry of Interior Affairs to complete the application process.
- Step 6: The Ministry of Interior issues a National Temporary Residence Identity Card to the employee within 25 days.
|
| Documents needed for a work permit |
Before travel, a foreign employee should submit,
- A temporary residence application form
- A valid passport
- One passport-size photograph
- Proof of the applicant’s health insurance
- A copy of the applicant’s work permit application provided by the employer
On arrival, a foreign employee should submit,
- Approval of temporary residence from the Ministry of Interior Affairs
- Evidence of accommodation in North Macedonia
- The original, certified copy of the employee’s work permit application
- A valid passport and one passport photo
- A criminal background check
- Proof of travel insurance
|
| Passport submission |
The employee’s original passport is presented during their appointment with the Ministry of Interior Affairs.
|
| Work permit validity |
A work permit is generally valid for one year. If requested with legitimate reasons, it is possible to extend it for up to three years or more.
|
| The work permit process for different countries |
Though North Macedonia is in the process to join the European Union (EU), right now, even the employees from EU states must apply for a work permit like other nationals.
|
| Where is the application processed? |
The application is processed in the employee’s home country’s North Macedonia consulate.
|
| When can employees travel to North Macedonia? |
An employee can travel to North Macedonia once they receive the work permit from the Ministry of Interior Affairs.
|
| What’s the cost of a type D visa? |
A type D visa costs EUR 70.
|
| Can spouses work on dependent visas? |
Yes. If the employee has a work permit visa for an indefinite period, their spouse can find employment in North Macedonia.
|
| Termination of work permit |
The work permit ceases to exist when the temporary or permanent residence permit expires.
|
| Special requirements for work permit cancellation |
The work permit must be canceled by the employer or appointed employment agent.
Other reasons to cancel work permit are,
- The employee has stayed outside North Macedonia for six consecutive months (not applicable if the employee is gone upon an order issued by the employer, is sick, is completing their education, or is on maternity leave).
- The employee is working for a company other than North Macedonia.
|
Securing work permits is an essential task of Skuad’s EOR services. Partner with us today to expedite your expansion in North Macedonia. To learn more, book a demo.
Payroll & Taxes in North Macedonia
Things You Must Know to Set Up Payroll in North Macedonia
Each country has different employment laws, regulations, and taxes. Hence, a proper understanding of the same is essential before setting up payroll in North Macedonia. There are four payroll options in North Macedonia.
- Internal: Ideal for larger subsidiaries that intend to function for a long duration in North Macedonia. You need to hire more HR staff and also an expert in the local labor laws.
- Remote: You can pay your employees based on the parent company’s payroll. You are required to follow two different regulations and tax codes.
- North Macedonia payroll processing company: A local payroll processing company in North Macedonia will process your payroll for you. However, your company will be responsible for complying with employment laws.
- Global EOR service: A global EOR service such as Skuad can not only take care of outsourcing payroll but also carry the responsibility of compliance with employment laws.
According to compensation laws in North Macedonia, the minimum wage set is MKD 14,500. You should mention this minimum wage in the employment contract and other wages made by a trade union or collective bargaining agreement (CBA). If required, your company should comply with Macedonia compensation laws related to CBA.
North Macedonia’s labor laws and procedures are regulated through,
- The Labor Relations Law (Official Gazette Nos. 62/05, 106/08, 161/08, 114/09, 130/09, 50/10, 52/10, 124/10, 47/11, 11/12, 39/12, and subsequent changes)
- The Collective Agreements (concluded on a national level)
- The Individual Employment Contract concluded between the employer and the employee
Employees in North Macedonia are paid monthly. Paychecks are issued through a local bank after withholding the pension and disability insurance, health insurance, employment insurance, and additional health insurance contributions.
| Tax and Key Terms
|
Explanation
|
| Income tax |
Annual Tax Income
*To be implemented from January 2023
| Gross Income |
Tax Rate (%) |
| less than MKD 1,080,000 |
10% |
| Greater than MKD 1,080,000 |
18% |
Employers have to comply with tax rules in the country and may withhold 10% as personal income tax from their employees.
Further, 0% to 15% tax on capital gains has to be paid based on the period of ownership, and 70% tax is levied on income whose origin cannot be proved.
|
| Tax returns |
No, tax returns are no longer filed by taxpayers. The Public Revenue Office does this for the taxpayers, who must only confirm that the deductions are correct.
|
| Financial year-end date |
March 15 |
| Tax documents form |
(PDD-GDP) Taxpayers are not required to fill the form as per the new PIT law. |
| Employees social security and statutory contributions |
Employers are expected to deduct the following contributions from the salaries of their employees.
| Pension and disability insurance |
18.8% |
| Health insurance |
7.5% |
| Employment insurance |
1.2% |
| Additional health insurance |
0.5% |
|
To manage payroll and taxes while expanding in North Macedonia, it is prudent to partner with an EOR service. Skuad’s unified employment platform North Macedonia EOR solution can take care of all HR-related tasks for you while ensuring compliance with the local laws, including those on payroll and taxation. To learn more, get in touch with Skuad experts.
Incorporation: How to Set Up A Subsidiary in North Macedonia
Setting up a subsidiary in North Macedonia is the initial step and a mammoth task to undertake. Companies must abide by North Macedonia’s subsidiary laws, which vary from region to region, and recruit employees under local employment contracts. Arduous tasks such as recruitment and management of the employment payroll come next.
Five different subsidiary options are available in North Macedonia
- Branch office
- Limited liability partnership company
- Limited liability company (LLC)
- Joint-stock company
- Representative office
Choosinan LLC will be ideal if you want to set up a local company in North Macedonia, while a branch office will be sufficient for a small-scale business.
Laws for all subsidiaries are different. An LLC is the most preferred subsidiary as it can protect the parent company and function on its own. It requires at least one director and one shareholder. The subsidiary in North Macedonia should have a deposit of at least EUR 5,000 of paid-up capital in a Macedonia bank account before commencing operations. The shareholders are liable based on the money they contributed. Transferring shares is allowed between individuals and a record should be maintained of the same. An annual audit is mandatory if the revenue is over 1EUR 70,000 or for financial companies.
LLC Subsidiary Process in North Macedonia
- Register your office address
- Submit articles of association
- Open a bank account in the country
- Register for value-added tax (VAT) and other taxes, including social contributions
- Get an official seal for the company
- Fill an online form with your details
- Find a unique name for your business and check for its availability
- Submit names of the business owners
- Appoint a board of directors and representative agents
- Document the company activities and other business details
- Deposit your minimum share capital and give details about each member’s capital contribution
- Mention your payment method
What You Need for Incorporation in North Macedonia
International companies may need to prepare for several weeks or months to start a subsidiary in North Macedonia. You would either hire an expert in the field or assign your staff to learn in detail about the subsidiary and labor laws in North Macedonia. Consult a legal adviser or an expert accountant who has a thorough understanding of subsidiary laws in North Macedonia if you wish to manage your own payroll.
Professional Employer Organization (PEO)
A professional employer organization (PEO) is an organization that works hand-in-hand with its client or employer to provide employees on lease. The also shoulders HR responsibilities such as recruiting, payroll and taxes, and employee benefits and compensations. Though a PEO is effective, it also has drawbacks when it comes to handling HR responsibilities.
- A PEO would be instrumental in bringing changes in the existing company policies while employers have to comply with their decision.
- Unexpected changes in service charges may occur as a result of PEO shifting the employer to a higher-risk category.
- A PEO could pose a potential risk for the employer if a complaint is registered in terms of employment, since it is not the legal employer and cannot be held liable for any compliance or other issues.
Though the services of a PEO are similar to global EOR firms, the latter is legalized. If you choose a PEO, you would still require someone to offer you legal support in North Macedonia.
If you do not have an entity set up already, as is required for a PEO, opting for an EOR service will be ideal. An EOR service can not only hire employers but also take care of HR responsibilities and other employment liabilities.
Hire Skuad’s EOR solution for North Macedonia to take care of all the compliance and HR-related tasks, from onboarding to training. Talk to Skuad exports to learn more.
Conclusion: What Gives Skuad’s North Macedonia Solution an Edge?
Skuad not only offers expert guidance but also provides a complete solution to your global expansion plans without having to set up a branch office or subsidiary first. From finding the right candidates to handling the most complicated HR responsibilities, our tech-enriched HR platform offers hassle-free management of remote entities.
Skuad shoulders the responsibility of interpreting the subsidiary and labor laws in North Macedonia and completing the recruitment process in a timely manner. Make use of our high-tech, unified HR platform to stand out from the crowd and expedite your expansion endeavors in North Macedonia. To avail yourself of our service, talk to Skuad experts!
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