Expand your business into Macedonia, with or without having a Macedonian entity
The European nation of Macedonia, now officially named North Macedonia, has undergone significant change in recent years, and its economy has developed rapidly to the point where it is increasingly drawing foreign investment. If you are considering an expansion into Macedonia for your business, it is important to understand and follow the country’s unique regulations. Unfortunately, progress can be slow in Macedonia, so you should expect weeks or even months to get up and running in the country if you are tackling the operation independently.
At New Horizons, we offer an extensive set of outsourcing services to help organizations expand into Macedonia quickly and effectively. Our professional employer organization (PEO), payroll, and employ of record (EOR) services give you the ability to outsource all the complex administration and legal compliance work so you can focus your efforts on a rapid and successful expansion.
Our dedicated in-house recruitment team can also help you to find, hire, and onboard new employees in Macedonia. If you have not yet established an entity in the country, you can use our local subsidiary as employer of record, providing all the benefits of hiring talent in Macedonia but without any of the associated administration.
Our outsourcing services could cut your expansion expenditure by thousands, speed up your growth, and give you greater flexibility moving forward.
How New Horizons outsourcing can help you expand into Macedonia
New Horizons enables your business to expand its operations into Macedonia, even without setting up a legal subsidiary.
Hiring in Macedonia - Employment Law Overview
Macedonia employment contracts
Employers in Macedonia are legally required to provide a written contract of employment for every employee. These contracts should include all relevant details of the employment agreement, be written in one of the country’s official languages (Macedonian and Albanian), and use the local currency of the Macedonian denar.
Working hours in Macedonia
The standard working week in Macedonia is 40 hours, with five eight-hour days.
National holidays in Macedonia
New Year’s Day
Orthodox Easter Day
Orthodox Easter Monday
St. Cyril and St. Methodius, Eid Al Fitr
St. Cyril and St. Methodius
North Macedonia Election Day
2 Aug- 3 Aug
11 Oct-12 Oct
Day of the Macedonian Revolution
St. Clement of Ohrid
Vacation in Macedonia
Employees in Macedonia are generally entitled to between 20 and 36 days of paid vacation leave every year. Additionally, they are entitled to up to seven days of special leave for things like marriages or funeral.
Sick leave in Macedonia
Employees in Macedonia are usually entitled to a sick leave allowance each year. However, the precise details should be laid out in each employee’s employment contract.
Maternity and paternity leave in Macedonia
Female employees in Macedonia can take up to nine months of paid maternity leave, in general. Male employees can generally use up to seven days of paid paternity leave.
Employee severance and terminations in Macedonia
Employees in Macedonia are usually entitled to at least one month of notice prior to termination. Additionally, it is common for employers to be required to assist with finding employees a new role, covering the cost of training in new skills, or paying severance of one month of salary for every two years of service. The exact details of severance and termination rights should be laid out clearly in each employment contract.
Tax laws in Macedonia
Employers in Macedonia are required to withhold several contributions from an employee’s gross salary:
- Pension insurance = 18%
- Employment insurance = 1.2%
- Health insurance = 7.3% (+0.5% for additional insurance)
The income tax rate in Macedonia is 10% to 18%, depending on income level.
The corporate tax rate in Macedonia is 10%.
Health coverage in Macedonia
The government provides healthcare in Macedonia, so employers do not need to provide private health insurance. However, some do choose to provide it as part of their benefits schemes.
Macedonia compensations & benefits
Compensation laws in Macedonia
The minimum wage in Macedonia is 14,500 denars per month for full-time employees.
Benefit management in Macedonia
It can be difficult to understand and set up employee benefits in Macedonia, and it can require a lot of time, effort, and investment on the part of employers. However, it is crucial that you adhere to compensation and benefits laws as you can be subject to large fines and legal issues if you fail to.
Outsourcing your benefit management process ensures that you fully understand and adhere to the rules, ensuring your compliance and speeding up the process significantly. At New Horizons, our Macedonia employment experts will help you to find and arrange your benefits, advise on your strategy, and ensure compliance with the law.