Employment in North Macedonia is governed by the Law on Labour Relations and by general and sector collective agreements. Salaries carry a flat 10% income tax and 28% of mandatory social contributions, both withheld from gross pay. Here is what employers need to know about leave, pay, tax and ending employment.
The Law on Labour Relations sets minimum leave. The exact number of annual leave days above the minimum depends on length of service, working conditions and other criteria in the applicable collective agreement.
At least 20 working days of paid leave, up to 26 under a collective agreement or contract. Full leave is earned after 6 months of continuous work; before that it accrues at 2 days a month.
Paid, continuous leave for pregnancy, birth and parenthood; 15 months for twins or more. It can start 45 days before the birth and must start 28 days before.
For marriage, the birth of a child (for the father) or the death of a close relative, with the exact days set by collective agreement.
After maternity leave ends, the mother can take up to 3 months of unpaid parental leave.
If the mother does not use the pregnancy, birth and parenthood leave, the father or adoptive parent can take it instead. A mother can return to work early, but not before 45 days after the birth, and then receives 50% of the leave benefit on top of her salary.
Set up each North Macedonian leave type in IceHrm with its own accrual, carry forward and approval rules, including pro-rata annual leave in the first year. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
The national minimum wage is set by law and reviewed each year; the latest increase took effect on 1 March 2026. Collective agreements add premiums for overtime, night work, weekend and holiday work, and length of service.
From 1 March 2026, for full-time work. That is MKD 26,046 net.
Normally over 5 working days. A law or collective agreement can set a shorter full-time week, but not below 36 hours.
And no more than 190 hours a year, except for work that cannot be interrupted. Overtime pay premiums are set by collective agreement.
Night work is work between 22:00 and 06:00. Night workers are entitled to extra protection, such as longer rest, suitable meals and medical checks, and employers who regularly use night work must notify the labour inspectorate.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so you keep the working time records the law requires and overtime stays within the weekly and yearly caps. Time & attendance →
Since 1 January 2023, employment income is taxed at a flat 10%, whatever the amount. Tax residents are taxed on their worldwide income and non-residents on income from North Macedonia.
Mandatory social contributions are calculated on gross salary and withheld from it, so there is no separate employer contribution on top of gross pay. The base is at least 50% of the national average salary and at most 16 times it.
| Contribution | Rate |
|---|---|
| Pension and disability insurance | 18.8% |
| Health insurance | 7.5% |
| Employment (unemployment) insurance | 1.2% |
| Additional health insurance | 0.5% |
| Total | 28% |
Build North Macedonian pay the way you already structure it, with your own salary components, deductions and formula columns, such as contribution columns with the minimum and maximum base. Want to know how well IceHrm handles payroll calculations for North Macedonia? Contact us or see Payroll →
An employer can only give notice for a justified reason: the employee's conduct or performance (personal reasons), a breach of work discipline or obligations (fault), or the needs of the business (business reasons).
| Situation | Notice |
|---|---|
| Employee resigns | 1 month (up to 3 by agreement) |
| Employer dismisses one or a few employees | 1 month |
| Collective dismissal (over 150 employees or 5% of staff) | 2 months |
| Seasonal work | 7 working days |
| Length of employment | Severance |
|---|---|
| Up to 5 years | 1 net salary |
| 5 to 10 years | 2 net salaries |
| 10 to 15 years | 3 net salaries |
| 15 to 20 years | 4 net salaries |
| 20 to 25 years | 5 net salaries |
| Over 25 years | 6 net salaries |
Employees are also entitled to a severance payment on retirement, set by law and collective agreement.
Employees are entitled to paid time off on state holidays. Under the Law on Holidays, members of religious and ethnic communities also have additional days off for their own holidays.
Where work cannot stop, employees can be required to work on a holiday; the employer must notify the labour inspectorate in writing beforehand. Holiday work premiums are set by collective agreement.
Leave groups give each group of staff its own public holiday calendar, so employees who observe Orthodox, Catholic or Muslim holidays get the right days off automatically. Holiday calendars →
Employment starts with a written employment contract, and the employer must register the start (and end) of each employment with the Employment Service Agency. Contracts can be indefinite, fixed-term, full-time or part-time.
Probation must be agreed in the contract and cannot exceed 6 months, although it can be extended for justified absences such as illness. Fixed-term contracts for the same work are limited to 5 years in total, with or without breaks; if the employee keeps working after that, the employment becomes indefinite. Non-compete clauses can last up to 2 years after employment ends and must be in writing.
Send contracts for e-signing, store them with registration documents on the employee's record, and track onboarding with task lists so nothing is missed on day one. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Macedonia, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Macedonia? Talk to us.
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