G-P provides employer of record services for customers that want to hire employees and run payroll without first establishing a branch office or subsidiary in Macedonia. Your candidate is hired via G-P’ Macedonia PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.
Our solution and Global PEO service enable customers to run payroll in Macedonia while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Macedonia.
Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in more than 185 countries around the world, quickly and painlessly.
Macedonia is a landlocked country on the Balkan Peninsula in Southeast Europe. Although Macedonian is the official language, five other languages are widely spoken and in some regions are co-official languages.
When negotiating terms of an employment contract and offer letter with an employee in Macedonia, it may be useful to keep the following in mind:
Employment Contracts in Macedonia
It is legally required to put a written employment contract in place in Macedonia, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Macedonia should always state the salary and any compensation amounts in Macedonian denar rather than a foreign currency.
Working Hours in Macedonia
The general work week in Macedonia is 40 hours, with five, eight-hour days.
Holidays in Macedonia
Macedonia celebrates 11 national holidays:
- New Year’s Day
- Orthodox Christmas Day
- Labor Day
- Orthodox Easter Monday
- Saints Cyril and Methodius Day
- Ramazan Bajram
- Day of the Republic
- Independence Day
- People’s Uprising Against Fascism Day
- Day of the Macedonian Revolutionary Struggle
- St. Clement of Ohrid Day
Vacation Days in Macedonia
Employees are generally entitled to 20 to 26 days of paid annual leave, and up to an additional seven for marriage, bereavement, or professional examinations.
Macedonia Sick Leave
Employees are generally eligible for paid sick leave.
Maternity/Paternity Leave in Macedonia
Female employees are generally entitled to 9 months of paid maternity leave.
Fathers may take up to seven days of paid paternity leave if the mother does not take her maternity leave.
Health Insurance in Macedonia
Macedonia has public health care covered by the Health Insurance Fund. The fund pays for most preventative care, examinations, and treatments.
Macedonia Supplementary Benefits
Supplemental insurance to cover private healthcare is sometimes given as a benefit.
Annual bonuses are common in Macedonia.
Termination/Severance in Macedonia
In general, employees are entitled to at least one month’s written notice of termination for just cause and up to 6 months’ notice.
Employers are generally supposed to find terminated employees new employment, pay for training, or provide a severance payment of one month’s salary for each two years’ service, up to 12 months’ of wages.
Paying Taxes in Macedonia
There is a flat personal income tax of 10%.
Macedonia plans to implement new personal income tax rates on January 1 2023 with a 10% tax rate up to MKD 1,080,000 and an 18% tax on the difference of any income beyond that amount. There will also be different tax rates for capital gains as well as income whose origin cannot be proved.
Employers must also withhold the following from employees’ gross salary:
- Pension and disability insurance: 18.8%.
- Health insurance: 7.5%.
- Employment insurance: 1.2%.
- Additional health insurance: 0.5%.
This information is provided as generally accepted information and is not intended as advisory services.
Establishing a branch office or subsidiary in Macedonia to engage a small team is time-consuming, expensive and complex. Macedonian labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. G-P makes it painless and easy to expand into Macedonia. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Macedonia PEO and Global Employer of Record solution provides you peace of mind so that you can focus on running your company.