The Republic of North Macedonia is a landlocked country in southeast Europe that’s located on the Balkan Peninsula. It’s a great location for companies that want to create business ties in southeast Europe and expand across borders. However, before expanding to Republic of North Macedonia, you’ll have to decide on a payroll option, set up your payroll to stay compliant with local labor laws, and continue to run both of your company’s locations.
G-P can help. We’ll hire employees as the Employer of Record (EOR) and assign them to work for your company. Then, we’ll streamline each step of the payroll management process, so you can focus on running your business.
Taxation rules in the Republic of North Macedonia
The payroll tax rate in the Republic of North Macedonia is a flat 10% after deducting the exempted amount of MKD 9,540 from the gross salary (MKD 9,540 is not a taxable amount).
While there are no employer contributions in the Republic of North Macedonia, below are employee contributions/deductions which are calculated over gross salary:
- 18.8% for pension and disability insurance
- 7.5% for health insurance
- 1.2% for employment insurance
- 0.5% for additional health insurance
Republic of North Macedonia payroll options for companies
There are 3 Republic of North Macedonia payroll options you can choose from, including:
- Internal: Larger companies that want to work in the Republic of North Macedonia for an extended period may consider adding employees to an internal payroll. You’ll need to have a local subsidiary and hire a large HR team if you choose this option as well as an expert in local labor laws.
- Republic of North Macedonia payroll processing company: A local Republic of North Macedonia payroll processing company will outsource your payroll, but they won’t manage compliance. You’ll still be held responsible for meeting employment compliance laws.
- G-P: The easiest way to run payroll in the Republic of North Macedonia and stay compliant is partnering with an Employer of Record (EOR) like G-P. With us, you can rest assured that all employees will be paid on time, freeing you to focus on other important aspects of your business.
How to set up a payroll in the Republic of North Macedonia
If you expand to Republic of North Macedonia without the help of a global EOR, you’ll have to establish a subsidiary in the country before you can set up your Republic of North Macedonia payroll and hire employees. The incorporation process depends on a variety of factors, and it can take several weeks or even months before you can start working.
Instead of losing valuable time, companies can bypass entity setup with G-P and start hiring in minutes, not months.
Entitlement/termination terms
Sometimes terminating an employment contract can be difficult, so including entitlement and termination terms in a contract ahead of setting up your Republic of North Macedonia payroll can protect both your company and employees. Typically, employers in the Republic of North Macedonia should help terminated employees find new employment, pay for training, or give 1 month’s salary for every 2 years of service as a severance payment.
Streamline global payroll management with G-P.
G-P streamlines each step of the payroll management process with our market-leading Global Growth Platform™. Pay your team with confidence anywhere in the world in 150 currencies with our 99% on-time automated payroll system — all with just a few clicks. Our products also integrate with leading HCM solutions, syncing employee payroll data across platforms automatically to create one reliable, convenient source of truth for HR teams.
Contact us to learn more about how we can support you.