How to Hire and Pay Employees in North Macedonia: A Step-by-Step Compliance Guide

North Macedonia has caught your attention, and for good reason. You’re hearing more about the growing tech scene in Skopje and a workforce that’s skilled, multilingual, and cost-effective. But then you get to the part about actually hiring someone there. And that’s when it gets complicated.

Employment contracts must follow local labor codes. Payroll comes with detailed contribution rules. And if you’re not careful, you could be out of compliance before your new hire even starts.

That’s why we built this guide: to walk you through what it really takes to hire and pay employees in North Macedonia the right way—from setting up to paying out. Let’s break it down.

Navigating legal requirements for hiring in North Macedonia

Getting hiring right in North Macedonia means understanding the rules before you post your first job. Here’s where to start.

1. Choose how you’ll hire

You’ve got three main paths:

• Set up a local entity. Great if you’re planning a long-term presence, but it’s not a fast process. You’ll need to register your business with the Central Registry, open a local bank account, and manage ongoing tax and labor filings.
• Work with an Employer of Record (EOR). The easiest way to get someone on board without opening a branch. The EOR becomes the legal employer, handling everything from contracts to payroll, while you manage the day-to-day. If you’re exploring options beyond establishing a local entity, understanding how an employer of record works can shorten your path to compliant hiring.
• Use independent contractors. A flexible route, but risky if you blur the lines. If your contractor works like a full-time employee, local authorities might reclassify them, and that could come with penalties.

2. Know what belongs in a contract

Every employee in North Macedonia needs a written contract, in Macedonian, signed before they start. By law, that contract has to include:

• Names of both parties
• Job title and responsibilities
• Gross salary and payment terms
• Working hours and vacation
• Contract duration (fixed or indefinite)
• Any probation period
• Termination notice period

Keep in mind: fixed-term contracts can’t last longer than five years.

3. Register as an employer

If you’re setting up locally, your company needs to get in the system before hiring anyone. That means:

• Registering with the Central Registry
• Getting a tax ID from the Public Revenue Office (PRO)
• Enrolling in health and pension insurance funds
• Notifying the Employment Service Agency within three days of contract signing

Forgetting a step could delay your ability to pay your new hire or worse, cause compliance issues.

Managing payroll and payment compliance in North Macedonia

Payroll here isn’t just about cutting a check. It’s a multi-step process that includes taxes, contributions, and local currency requirements. Here’s how to stay ahead.

1. Understand what salaries look like

As of 2025, the national minimum wage is MKD 36,037 (about US$689.66) per month. Most white-collar roles come in well above that, with monthly salaries ranging from MKD 89,000 to MKD 160,000 for professionals in tech, finance, and engineering.

Overtime is paid at 135%. Sunday work often has its own rules, depending on the job and collective agreements.

2. Break down the monthly cycle

Here’s what you’ll be handling each month:

• Personal income tax. –0%
• Pension contributions. 12.8% employer, 6% employee
• Health insurance. 5% employer, 2.5 % employee
• Unemployment insurance. 0.5% employer, 0.7 % employee

On a MKD 60,000 gross salary, your employee takes home about MKD 48,000. Everything is paid in denars, and every contribution has its own payment destination.

3. Pay the right way

Bank transfers in Macedonian denars are the only legal way to pay employees. If you’re running payroll from outside the country, this gets tricky fast. Foreign-initiated payments must still meet local tax and banking rules.

That’s why many companies opt to work with a provider like Pebl—an employer of record that knows the ins and outs of local payroll so you don’t have to guess.

Mandatory benefits and leave for employees

Employers are required to provide a baseline of benefits—some paid by you, others covered by the state. Here’s a quick breakdown:

You’ll also need to contribute to workplace injury insurance. Rates vary based on your industry’s risk level.

Step-by-step: From offer to onboarding

Here’s what a compliant hiring process looks like in practice:

• Post your role and interview candidates
• Issue and sign a local employment contract (in Macedonian)
• Register the employee with the Employment Service Agency
• Sign them up for health, pension, and tax coverage
• Arrange payroll through a local bank in MKD
• Deliver payslips monthly and follow local reporting timelines

Tips and resources for a smooth setup

Getting organized up front will save you from surprises later. Keep these in mind:

• Use a hiring checklist to track registrations and deadlines
• Partner with a legal advisor familiar with North Macedonian employment law
• Build a payroll calendar and stick to it
• Bookmark the Ministry of Labor and Social Policy for up-to-date guidance
• For regional best practices, check out A Guide to European Expansion: Best Practices & Tips

What an EOR can do for you

An employer of record is your shortcut to hiring in North Macedonia without setting up shop there. They become the legal employer, while you still manage the day-to-day work and culture.

Here’s what an EOR like Pebl handles:

• Drafting and signing compliant employment contracts
• Registering employees with tax and insurance offices
• Running monthly payroll and making legal deductions
• Administering benefits like maternity leave and vacation

Think of it as getting a local HR and legal team, minus the overhead. You stay focused on growth while Pebl manages compliance.

Hiring in North Macedonia pays off—when you do it right

North Macedonia gives you access to talent that’s sharp, affordable, and ready to work globally. But it’s not a plug-and-play environment. Local rules matter.

Get well-informed guidance from an expert. Plan your setup. And don’t leave payroll and compliance to chance. When you get it right, you set your team and your expansion for success.

Pebl makes global hiring simple

At Pebl, we help companies like yours hire in 185+ countries without the paperwork nightmares. Our EOR services in North Macedonia let you hire, pay, and support employees there without opening an entity.

We handle contracts, payroll, taxes, and local benefits. You focus on finding the best people. And yes, we make sure they get paid on time, in full compliance, every single month.

Let’s talk about how we can help you hire in North Macedonia—faster, safer, and without the legal guessing games.

This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.

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