North Macedonia Labor Law and Employment Policy Overview

Employment Law Overview

• Key Legislation:
  • Labor Law
  • Social Security Law
  • Collective Bargaining Law
• Legal Characteristics:
  • Aims to protect employee rights and promote harmonious labor relations.
  • Regulates aspects such as minimum wage, working hours, leave, social security, and termination procedures.

Employment Contract Requirements

• Contract Types:
  • Indefinite contracts
  • Fixed-term contracts (maximum five years)
• Contractual Provisions:
  • Identities of employer and employee
  • Commencement date of employment
  • Job title and description
  • Working hours
  • Salary and benefits
  • Annual leave entitlement
  • Termination conditions
• Language and Currency:
  • Contracts must be in Macedonian.
  • Salaries and benefits must be paid in Macedonian Denar (MKD).

Working Time Regulations

• Standard Working Hours: 40 hours per week, 8 hours per day.
• Rest Days and Breaks: Minimum of 24 hours rest per week, 12 hours rest per day.

Leave Policy

• Annual Leave:
  • Minimum of 20 days per year, increasing by one day every five years of service, up to a maximum of 26 days.
• Public Holidays: 13
• Special Leave:
  • Sick leave: Paid by employer for first 30 days, then by social security.
  • Maternity leave: 9 months, paid by social security.
  • Paternity leave: 7 days, paid.
  • Parental leave: 3 months, unpaid.

Employee Dismissal and Contract Termination

• Notice Period:
  • Indefinite contracts: 30 days to 3 months
  • Fixed-term contracts: 3 days' notice (during probation) or contract expiry
• Severance Pay:
  • In case of redundancy, 1 to 7 months' salary paid based on years of service.
• Protection Against Unfair Dismissal: Employees dismissed due to discrimination, retaliation, or other unfair reasons are entitled to compensation.

Tax Laws

• Personal Income Tax:

  • Salary Range	Tax Rate
    0 - 30,000	0%
    30,000 - 45,000	10%

• Social Security Contributions:

  • Employee: 18.5%
  • Employer: 21.5%

Health Insurance

• Insurance Policy: Universal healthcare provided by the Social Security Fund.
• Coverage: Basic medical services, pharmaceuticals, and hospitalization.

Compensation and Benefits

• Minimum Wage: 20,175 MKD/month
• Salary Structure:
  • Base salary
  • Bonuses (common)
  • Allowances (e.g., transportation allowance, housing allowance)

Work Permits and Visas

• Permit Requirement: Non-Macedonian citizens require a work permit.
• Application Process:
  • Application submitted by employer to the Ministry of Labor and Social Policy.
  • Applicant must provide passport, employment contract, and educational credentials.

Confidentiality and Non-Compete Clauses

• Enforceability: Confidentiality and non-compete clauses are enforceable in North Macedonia.
• Common Provisions:
  • Confidentiality: Prohibits disclosure of confidential information.
  • Non-compete: Prohibits working for competitors for a specified period.

Training and Development

• Legal Requirements:
  • Employers must provide safety training and skills development training to employees.
• Government Support:
  • Government provides training subsidies and programs.

Workplace Diversity and Inclusion

• Legal Requirements: Prohibits discrimination based on race, gender, religion, or other protected characteristics.
• Enforcement Measures:
  • Employers must have anti-discrimination policies in place.
  • Employees can file complaints of discrimination with the Ministry of Labor and Social Policy.

Remote Work Policy

• Legal Framework: Remote work has no specific legal framework in North Macedonia.
• Tax and Insurance Implications: Remote work may impact tax and social security contributions.

Authoritative Website Addresses

• Ministry of Labor and Social Policy of North Macedonia: https://www.mtsp.gov.mk/