The individual income tax ranges from 10% to 18%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

The only mandatory monthly employer cost in North Macedonia is Compensation for past work service. The cost for this fee varies based on the employee's monthly salary and total years worked, including work performed for all previous employers, and is calculated as 0.5% of the employee’s base monthly multiplied by the total years worked (including all previous employers). This fee will be calculated after onboarding based on the employee’s information.

Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.

Overtime payment is mandatory and may be included in the salary. Hours outside of standard work hours are considered overtime. For additional hours, employees are paid:

• 135% of the hourly rate on standard working hours
• 135% of the hourly rate on night working hours
• 150% of the hourly rate on rest days

Employees are entitled to 2 days of leave in the event of childbirth or adoption of a child. This is paid for by the employer at 100% of their regular salary. 

Employees are entitled to an unlimited number of days of paid sick leave. This leave is paid at different rates and by different payers depending upon length:

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in North Macedonia can be complex. There is no at-will termination in North Macedonia for employers and termination must be done for just cause.

Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• Unilaterally by the employer based on:
  • Probation period
  • Objective grounds
  • Disciplinary dismissal
  • Performance due to unsuitability for the job
• By the expiration of the contract

In North Macedonia, all employees who are made redundant are entitled to severance pay. Severance pay is varied depending on the length of services as follows:

• 1 month of net salary per year of service up to 5 years.
• 2.5 net salaries per year of service up to 10 years.
• 3.5 net salaries per year of service up to 15 years.
• 4.5 net salaries per year of service up to 20 years.
• 6 net salaries per year of service up to 25 years.
• 7 net salaries per year of service over 25 years.

North Macedonia celebrates 12 national holidays. There are 5 additional regional holidays that vary based on location. 

National public holidays include:

• New Year's Day
• New Year’s Holiday
• Orthodox Christmas Day
• Orthodox Easter Monday
• Ramazan Bajram (Eid al-Fitr)
• Labor Day
• Saints Cyril and Methodius' Day
• Ilinden Day (Republic Day)
• Independence Day
• Revolution Day (Day of People’s Uprising)
• Day of the Macedonian Revolutionary Struggle
• Saint Clement of Ohrid Day

Contracts must be in Macedonian and can be bilingual. They must be in writing and signed by both parties.

A contract must include:

• Name
• Start date
• Length of the employment
• Job description
• Termination conditions
• General provisions
• Place of work
• Working hours
• Vacations and absences
• Salary
• Obligations of the employer
• Right and obligations of the employee
• Final provisions - (Employment agreement  should be prepared from Legal Advisor)