After years of helping international companies build their teams in North Macedonia, I’ve seen firsthand how this small Balkan country has transformed into a hidden gem for businesses looking to expand. With its strategic location in Southeast Europe, highly educated workforce, and business-friendly environment, North Macedonia offers incredible opportunities for companies ready to think beyond traditional markets.
Now, I’ll be completely upfront with you – this guide is packed with information. Some of it might be stuff you never even thought to consider when planning your hiring strategy. At first glance, it might feel a bit overwhelming with all the details about employment laws, tax structures, and compliance requirements. But here’s the thing: I’d rather give you everything you need to know upfront than have you discover important details halfway through your hiring process. Think of this as your complete roadmap – you don’t need to memorize every detail, but having it all in one place means you’ll know exactly what to expect and can plan accordingly.
What I always tell our clients is that successful hiring in North Macedonia goes beyond just finding great talent (though we have plenty of that). It’s about understanding the local landscape, respecting the employment laws, and building genuine relationships with your team. That’s where Connect comes in – and that’s exactly what this guide will help you achieve.
Key Highlights:
- Population: 2.1 million people
- Official Languages: Macedonian and Albanian
- Currency: Macedonian Denar (MKD)
- Time Zone: Central European Time (CET) – perfect for European business hours
- Key Industries: IT, manufacturing, agriculture, textiles, and business services
Why North Macedonia Should Be on Your Radar
From our experience working with dozens of international companies, I can tell you that North Macedonia offers some unique advantages that larger markets simply can’t match. The IT sector alone is growing by over 15% annually, and we’ve placed candidates with English proficiency levels that rival any Western European country.
What really sets North Macedonia apart is the cost-effectiveness combined with quality. You’re getting highly skilled professionals at competitive rates, without sacrificing the work ethic and dedication that European businesses expect. Plus, being in the CET timezone means your remote teams can collaborate seamlessly with offices across Europe.
How to Hire in North Macedonia: Your Three Options
Over the years, we’ve guided companies down all three paths, and each has its place depending on your goals and timeline.
1. Setting Up a Local Entity
This is the traditional route – establishing your own legal presence in North Macedonia.
Pros:
- Complete control over your operations
- Better long-term cost structure for larger teams
- Strong local presence for client relationships
Cons:
- Takes 2-3 months to establish properly
- Requires significant upfront investment (€10,000-15,000)
- Ongoing compliance and administrative burden
Best for: Companies planning to hire 10+ employees or establish a long-term operational base
2. Employer of Record (EOR) Partnership
This is where Connect shines – we become the legal employer while you manage the day-to-day work.
Pros:
- Start hiring within 5-7 business days
- Full compliance handled by us
- No need for local entity setup
- Transparent monthly fees
Cons:
- Monthly service costs per employee
- Shared employment responsibilities
Best for: Quick market entry, testing the waters, or small to medium teams
3. Independent Contractors
Working with freelancers and self-employed professionals.
Pros:
- Maximum flexibility for project-based work
- Lower overhead costs
- Easy to scale up or down
Cons:
- Risk of worker misclassification
- Limited control over work arrangements
- Potential compliance issues
Best for: Specialized projects, temporary needs, or highly skilled consultants
Want to explore outsourcing beyond North Macedonia? If you’re considering a broader international outsourcing strategy, check out our comprehensive step-by-step guide to foreign outsourcing that covers best practices, legal considerations, and how to choose the right countries for your specific needs.
Employment Landscape: What You Need to Know
Standard Working Conditions
North Macedonia follows a standard 40-hour work week, typically 8 hours per day. Sunday is officially a non-working day for most workers according to the 2022 Labour Law amendments.
Key Details:
- Standard Work Week: 40 hours per week
- Daily Hours: 8 hours per day
- Overtime Limits: Maximum 190 hours per year, capped at 8 hours per week
- Overtime Compensation: Minimum 135% of regular rate, established by collective agreement
- Probation Period: Not mandatory, but can be up to 4 months if implemented
Employment Contracts
All employment contracts in North Macedonia must be in writing. Contracts must be in Macedonian and can be bilingual. Based on our experience, we always recommend bilingual contracts to ensure clear understanding for international employees.
Contract Types:
- Indefinite term contracts: The standard for permanent employment
- Fixed-term contracts: Maximum duration of 5 years, with same protections as indefinite contracts
Essential Contract Elements:
- Detailed job description and responsibilities
- Salary structure and payment terms
- Working hours and location arrangements
- Notice periods and termination conditions
- Benefits and leave entitlements
Compensation & Benefits: Getting the Numbers Right
Salary Requirements
As of 2025, the minimum wage in North Macedonia is MKD 22,567 per month. However, in our experience, competitive salaries for skilled professionals typically start much higher than the minimum wage.
Payment Structure:
- Payment Frequency: Monthly, typically on the last working day
- 13th Month Salary: Customary practice for employees who work over 150 hours beyond regular hours and aren’t absent for more than 21 days
- Bonus Payments: Mandatory bonus equal to one month’s average national wage for employees working 150+ overtime hours annually
Mandatory Benefits
Employees are entitled to a minimum of 20 days annual leave, increasing to a maximum of 26 days based on years of service. Here’s what every employer must provide:
Annual Leave:
- 20 days minimum, increasing by one day every five years of service
- 12 days must be used by December 31st, the rest can be carried over but must be used by June 30th
Public Holidays: 11 national holidays that employees are entitled to take as paid time off
Sick Leave:
- Up to 30 days of paid sick leave covered by the employer
- 70% pay for up to 7 days, 80% for up to 15 days, 90% for 15-30 days
Maternity Leave:
- 9 months paid maternity leave (15 months for multiple births)
- Funded by the State Fund for Health and Insurance after 6 months of service
Paternity Leave:
- 7 days of paid paternity leave, but only if the mother doesn’t take maternity leave for the same period
Other Mandatory Leave:
- Marriage leave: Up to 3 days paid
- Bereavement leave: Up to 7 working days for immediate family members
Additional Benefits (Optional but Common)
From our client experience, these benefits help attract top talent:
- Private health insurance supplements
- Meal allowances or vouchers
- Transportation allowances
- Professional development budgets
- Flexible working arrangements
Tax & Social Security: The Financial Framework
Employee Tax Obligations
North Macedonia uses a flat 10% income tax rate, which makes calculations straightforward for both employers and employees.
- Income Tax: Flat 10% rate applied to employment income
- Tax Relief: Monthly personal allowance of MKD 10,270 (MKD 123,240 annually) for 2025
- Tax Withholding: Employers withhold tax directly from salaries and remit by the 10th of the following month
Social Security Contributions
Social contributions are fully borne by employees, with employers only obligated to deduct and remit on their behalf. Here’s the breakdown we explain to all our clients:
Important Calculation Details
- Minimum base: 50% of average national salary
- Maximum base: 16 times the average national salary
- As of 2024, the national average gross monthly salary is MKD 57,609
Termination & Severance: Handling Departures Properly
Termination Procedures
The minimum notice period is 30 days, unless otherwise agreed, with a maximum of 3 months. There’s no at-will employment in North Macedonia – terminations must have just cause.
Notice Periods:
- During probation: employees can terminate with 3 days’ notice, employers can terminate at the end of the probation period
- Regular employment: 30 days minimum notice
- Employers and employees can agree on monetary compensation instead of working the notice period
Valid Termination Grounds:
- Employee misconduct or performance issues
- Economic reasons/redundancy
- Mutual agreement
- End of fixed-term contract
Severance Pay Requirements
All employees facing redundancy are entitled to severance pay, with amounts varying based on length of service:
Severance Calculation:
- Based on average monthly salary over the last six months before termination
- Cannot be lower than 50% of the net salary paid per employee in North Macedonia in the last month prior to termination
- Must be paid on the day of termination
Work Permits & Visas: Bringing International Talent
Work Authorization Requirements
- EU/EEA Citizens: 90-day visa-free entry, may need work permits for longer stays
- Third-Country Nationals: Work permit and residence permit required
Common Work Permit Types
1. Unified Permit for Employment
- Processing time: 4-6 weeks
- Work Visa cost: €70, Temporary Residence Permit: €90
- Valid for one year, renewable
- Best for: Long-term employment arrangements
2. Personal Work Permit
- For self-employed individuals or business owners
- Valid for one year, renewable
- Best for: Entrepreneurs and contractors
3. Short-term Work Exemption
- For services lasting no more than 60 days per calendar year
- Examples: technical support, training, diagnostics, repairs
- Still requires registration with Employment Agency 7 days before arrival
Required Documentation
- Employment contract from registered company
- Clean criminal record certificate
- Proof of accommodation in North Macedonia
- Health insurance coverage
- Educational credentials
- Valid passport (3+ months validity)
Cultural Considerations: Building Successful Relationships
Business Culture
After working with hundreds of professionals in North Macedonia, I can tell you that understanding the local business culture makes all the difference in building strong teams.
- Communication Style: Direct but respectful – Macedonians appreciate honest, straightforward communication
- Meeting Etiquette: Punctuality is valued, and relationships matter as much as business results
- Work-Life Balance: Family time is important, and most professionals expect reasonable working hours
- Hierarchy: While there’s respect for authority, the workplace culture is generally collaborative
Language Considerations
Business Language: Macedonian is primary, but English proficiency is high among professionals English Proficiency: Particularly strong in IT, finance, and international business sectors Local Language Benefits: Even basic Macedonian phrases go a long way in building relationships
Discover more and find out why Macedonia is a rising outsourcing hub in our separate article here.
Why Choose Connect for Your North Macedonia Hiring
Our EOR Advantages
After helping over 200 companies establish teams in North Macedonia, here’s what sets us apart:
Lightning-Fast Onboarding: We can have your new team member legally employed and working within 5-7 business days
Full Compliance Guarantee: Our local HR and legal experts stay ahead of every regulation change, so you don’t have to worry about compliance risks
Transparent, Flat-Rate Pricing: No percentage fees or hidden costs – just one clear monthly rate per employee
Dedicated Local Support: Your team gets access to our Skopje-based HR professionals who understand both local culture and international business needs
Integrated Platform: Manage payroll, benefits, contracts, and compliance all in one place
Getting Started with Connect
- Free Consultation: We’ll discuss your specific hiring needs and timeline
- Compliance Review: Our team reviews all requirements for your industry and roles
- Quick Setup: Create your account and prepare candidate documentation
- Start Hiring: Begin building your North Macedonia team with full legal protection
Real Talk: What to Expect
Let me be honest about what hiring in North Macedonia is really like. You’ll find incredibly talented, hardworking professionals who are eager to work with international companies. The cost savings compared to Western Europe are real, but so is the quality of work you’ll receive.
The challenges? Sometimes navigating the bureaucracy can be slow if you don’t have local expertise (that’s where we come in). And while English is widely spoken in professional circles, having local support for complex employment matters is invaluable.
The opportunities? You’ll tap into a market where top developers, engineers, and business professionals are available at rates that make scaling your team financially sustainable while maintaining high quality standards.
Frequently Asked Questions
Q: What if my employee wants to switch from contractor to full employee status?
A: This is actually quite common as companies grow. We can handle the transition seamlessly, ensuring all previous contractor work is properly documented and the new employment relationship starts cleanly from a compliance perspective.
Q: Are there any restrictions on remote work arrangements for North Macedonia employees?
A: North Macedonia employment law doesn’t specifically restrict remote work, but employment contracts should clearly specify work arrangements. Many of our clients successfully manage hybrid and fully remote employees.
Q: How does the 13th month salary work exactly, and is it really mandatory?
A: It’s mandatory only if the employee works 150+ overtime hours annually and has less than 21 days of absence. It’s calculated as one month’s average national wage (not the employee’s salary), and it’s paid at year-end.
Q: What happens if we need to relocate an employee from North Macedonia to another country?
A: We can help coordinate the transition and handle the proper termination process in North Macedonia while ensuring the employee maintains their benefits continuity in the new location.
Q: Can we implement our company’s global benefits package, or are we limited to local requirements?
A: You can absolutely offer additional benefits beyond the mandatory ones. Many of our clients add global health insurance, stock options, or other perks to attract top talent.
Q: What’s the typical timeline for salary reviews and increases in North Macedonia?
A: Most companies conduct annual reviews, though there’s no legal requirement. Given inflation considerations, many of our clients are moving to bi-annual salary reviews to stay competitive in the market.
Ready to Build Your North Macedonia Team?
The opportunity in North Macedonia is real, and the timing has never been better. With the right local partner, you can tap into this growing market quickly and compliantly.
Our team at Connect has guided hundreds of companies through this process, from startups hiring their first international employee to enterprises scaling entire departments. We know the ins and outs of North Macedonia employment law, and more importantly, we know how to make the process smooth for you.