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North Macedonia, officially known as the Republic of North Macedonia, is a country located in Southeast Europe. It shares its land borders with Kosovo to the northwest, Serbia to the north, Bulgaria to the east, Greece to the south, and Albania to the west. The country encompasses roughly the northern third of the broader geographical region of Macedonia. Skopje, the capitaland largest city, is residence to a quarter of the nation’s 1,83 million inhabitants.
Macedonia’s Economic Overview:
1.Since its time as part of the Ottoman Empire, North Macedonia’s economy was primarily agrarian in character. The focus was on livestock grazing and cultivating vineyards. Additionally, the cultivation of opium poppy, introduced to theregion in 1835, emerged as a significant crop by the late 19th century and continued as such until the 1930s.
2. The role of industry in the region’s economy increased duringthe industrial age. The geographical region of Macedonia was responsible for large outputs of textiles and several other goods.
Employment contract
There are following employment agreement options:
Employment agreement for indefinite term
Employment agreement with fixed term (the maximum term is 5 years)
The fixed employment will become indefinite employment if the employee continues to work after the expiration of the employment contract. Additionally, fixed-term employment may be converted into indefinite employment in the following exceptional circumstances:
o The employee has worked in the same position for more than 2 years. o The position has become available due to retirement.
o The financial resources for the position have been allocated in advance. o The employee confirms the need for long-term employment.
Probation period — defined in the collective agreement or employment contract and must not exceed six months. The probationary period may be extended in the case of a justifiable absence from work (due to illness and similar).
Employment agreement for part time: The employment contract may stipulate part-time work i.e. period shorter than 40 hours per week. In such case, the employee has same rights as a full-time employee. However, the entitlement to these rights is proportional to the length of the work time stipulated in the employment agreement. Regarding the annual holiday, part-time employees are entitled to at least 10 working days.
✓ Service agreement
As per the new Labor law, service agreements may be concluded only for the jobs which are outside the employer’s business activities.
A normal five-day working week is 40 hours. An employee working 6 hours per day is entitled to a 30- minute lunchbreak. However, this lunch break cannot be taken during the first 2 hours or the last 3 hours of work. Employees working between 4 and 6 hours are entitled to a 15-minute lunch break.
The maximum weekly overtime work allowed is 8 hours, and the annual limit is set at 190 hours. However, thereare exceptions to this limitation in cases where the nature of the work process or the inability to organize shifts prevents interruptions. Nevertheless, even in these circumstances, the average weekly overtime work over any consecutive three-month period should not exceed eight hours.
For each calendar year, the employee has the right from 20 up to 26 working days of annual leave (depending on job performance, years in service, and employment contract terms), and up to an additional seven for marriage, bereavement, or professional examinations.
Maternity leave: According to the Law on health insurance, women are entitled to benefits during pregnancy, delivery, and maternity. These benefits are provided to the biological mother, including surrogate mothers, for a continuous period of 9 months, which extends to 15 months if there are multiple births (twins or more).
Women can choose to start using the benefit 45 days before the expected week of delivery, as it is mandatory to begin the benefit period 28 days before the expected delivery time. This period falls within the 9 months of maternity pay. The benefit amounts to 100% of the wage and is transferred by the Fund of Health Insurance on behalf of the Ministry of Labor and Social Affairs.
In cases of objective reasons for early pregnancy absence from work, the maternity pay can start earlier, upon confirmation by the Health Fund Specialist Commission, ensuring the 100% wage benefits begin before the 9-month maternity pay period, which commences with the delivery. In such cases, the benefits are also paid by the Fund of Health Insurance on behalf of the Ministry of Labor and Social Affairs.
Parental leave can be taken for up to 9 months (for a single child) and up to 15 months (for more than one child). The monthly benefits amount to 100% of the parent’s last wage, not exceeding 4 times the national average wage for the respective year. Parental leave can be exercised as an unpaid benefit for a maximum of 3 months within a total time frame of 3 years, in relation to the need for child/children care and support for growth.
The amount of sick pay is determined by the duration of the sick leave as follows:
For sick leave up to 7 days, the employee is entitled to 70% of their salary.
For sick leave up to 15 days, the employee is entitled to 80% of their salary.
For sick leave exceeding 15 days, the employee is entitled to 90% of their salary.
The employer is responsible for providing sick pay if the employee’s inability to work lasts up to 30 days. Beyond 30 days, the health insurance is responsible for calculating and providing the sick leave benefits.
Employees have the right to receive additional paid days off under specific personal or family- relatedcircumstances. These circumstances encompass:
Own marriage or that of a close relative.
Birth or child adoption.
Death of a partner or a family member. • Exams
However, the maximum number of extra days off allowed within a single year is limited to 7 days.
In Macedonia, employees are entitled to mandatory benefits such as pension, health coverage, paid time off(including maternity leave and related benefits), professional disease coverage, and employment insurance.
Additionally, supplementary employee benefits include formal education and non-formal education assistance,retirement plans, managerial insurance, private health insurance, as well as access to sports and leisure activities.
However, it is worth noting that offering employee perks is not a widespread practice in the country.
EMPLOYER: Social contributions are fully covered by the employees while the employer is obligated to deduct the contributions on behalf of the employees.
EMPLOYEES:
18.80% — Pension & Disability Insurance
7.50% — Health Insurance
0.50%- Additional Health Insurance
1.20% — Employment Insurance
28.00 % — Total Employee Cost
Employee Income Tax: 10% Flat tax rate
To finalize an employment contract, foreign individuals need to obtain a temporary residence permit based ontheir employment status and a work permit.
The temporary residence permit will be granted after receiving a positive evaluation from the EmploymentAgency, and it is mandatory for the following cases:
Employing a foreign individual,
Hiring a foreign individual for seasonal work, and
Seconding employees.
The validity of the positive opinion from the Employment Agency cannot exceed one year, and the foreigner is only allowed to work in the specific position stated in the temporary residence permit. The Macedonian government offers three types of visas to foreign nationals:
Type B visas are for transit purposes and allow a maximum stay of five days.
Type C visas are for short visits of up to three months.
To reside and work in Macedonia, foreign employees will need to obtain a Type D visa. However, the long-stay visa alone does not grant residency. Upon arrival in the country, they must complete the process of obtaining a temporary residence permit from the Ministry of Interior.
Additionally, the employee will require a work permit, which must be obtained by their employer in Macedonia on their behalf.
Requirements for Obtaining Macedonia Work Visas:
To secure a Type D visa for living and working in Macedonia, the employee needs to submit the following documents before traveling to the country:
Valid passport.
One passport-sized photograph.
Proof of health insurance.
A copy of the work permit application, provided by the employer.
To obtain a temporary residency permit upon arrival in Macedonia, employees will need to provide further documentation:
Approval of temporary residence from the Ministry of Interior.
Evidence of accommodation in Macedonia.
The original, certified copy of the employee’s work permit application.
Valid passport and one passport photo.
A criminal background check.
Proof of travel insurance.
Application Process:
Work permits in Macedonia are issued by the Employment Service Agency. The employer initiates the work permit application on behalf of the foreign employee and sends them an original copy of the application. The employee then submits the application along with the required documents to the nearest Macedonian consulate. Once approved, the employee obtains a Type D long-stay visa and travels to Macedonia.
Within five days of arrival, the employee completes the process for obtaining a residence permit by submitting the necessary documents to the Ministry ofInterior. Within 25 days of the application date, the Ministry issues a National Temporary Residence Identity Card to the employee.
The entire work permit issuance process typically takes around 45 days. Once the work permit is approved, the employee can begin working for theiremployer in Macedonia.
1) upon the expiry of the period for which the contract has been entered into; 2) in case of death of the employee or the employer (natural person);
3) due to winding up of the employer in accordance with the law;
4) by agreement of the parties;
5) by resignation;
6) by a court order, and
7) in other cases laid down by law.
➢ Termination of a fixed-term employment contract: The fixed-term employment contract shall be terminated upon the expiry of the period forwhich it has been entered, i.e., with the completion of the specified task or when the reason for entering the contract shall cease to exist.
➢ Termination during probation period: For the duration of the probationary period the employee may terminate the employment contract with a notice period of three working days.
➢ Termination with a notice:
— If the employment contract is terminated by the employee, the notice period should be one month. The employment contract or the collective agreement may provide for a longer notice period, which cannot exceed three months.
— If the employer terminates the employment contract of an individual employee or a smaller number of employees, the notice period shall be one month, and in the case of termination of employment of more than 150 employees or 5% of the total number of employees with the employer concerned prior to the termination of employment, it shall be two months.
— If the employer terminates the employment contract of an employee performing seasonal work, the notice period shall be seven working days.
In the event of termination of the employment contract for economic reasons, the employer is obliged to pay the employee a severance pay, in particular:
up to 5 years of employment — in the amount of one net salary;
from 5 to 10 years of employment — in the amount of two net salaries;
from 10 to 15 years of employment — in the amount of three net salaries;
from 15 to 20 years of employment — in the amount of four net salaries;
from 20 to 25 years of employment — in the amount of five net salaries; and
over 25 years of employment — in the amount of six net salaries.
The base for the calculation of the severance pay shall be the average net salary of the employee in the last six months prior to the termination, but it shall not be less than 50% of the average net salary paid per employee in the country in the last month before the termination.
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