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)
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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.
- National or ethnic origin
- Skin color
- Sexual orientation
- 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.
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.
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.
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
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.
Our EOR services in North Macedonia can assist you with all necessary documents to reside and work in the country.
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.
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!