North Macedonia offers something that’s genuinely rare in employer payroll structures: there are no employer-side social contributions. The entire social contribution burden sits within the employee’s gross salary, which means your cost as an employer is exactly equal to the gross salary you agree on, with no hidden percentage stacked on top. That makes budget planning unusually straightforward. This guide covers how the system works, what you’re required to withhold and remit, and what an employee at minimum wage takes home.
How employer taxes work in north macedonia
North Macedonia’s payroll system is built around a single, clear principle: the employer’s financial obligation stops at gross salary. You don’t pay any additional percentage on top of what you’ve agreed to pay your employee. Instead, social contributions are funded from within the employee’s gross salary and you withhold and remit them on the employee’s behalf.
Your administrative responsibilities as an employer are nonetheless real. You’re required to calculate and withhold employee social contributions each month, calculate and withhold personal income tax after applying the relevant deductions, submit payroll calculations to the Public Revenue Office (PRO) before paying net salaries, and remit the withheld amounts to the PRO by the 15th of the following month.
The minimum wage applies to all employees and is adjusted annually each March. From 1 March 2026, the minimum wage is MKD 38,507 gross per month, which translates to a net take-home of MKD 26,046 per month.
Social contributions: an employee-funded system
North Macedonia has no employer-side payroll tax. That’s worth stating plainly because it distinguishes the country from most other markets where employers pay a percentage on top of gross salary into state funds.
What you do have is a responsibility to withhold employee social contributions from gross salary and remit them correctly. The total employee contribution rate is 28%, broken down as follows:
| Contribution type | Rate |
|---|---|
| Pension and disability insurance | 18.8% |
| Health insurance | 7.5% |
| Employment insurance | 1.2% |
| Additional health insurance | 0.5% |
| Total | 28% |
Contribution bases
Contributions are calculated on the employee’s gross salary, subject to a minimum and maximum base. The minimum contribution base is 50% of the average national gross salary. The maximum base is capped at 16 times the average national gross salary, which for 2026 is set at MKD 69,141 per month. That means the monthly maximum contribution base is MKD 1,106,256 (16 x MKD 69,141). For the vast majority of employees, gross salary will fall well below that ceiling, so the cap won’t affect your calculations.
What this means for payroll administration
You’re not funding these contributions from your own budget. But you are legally responsible for withholding the correct amounts, filing the payroll declaration with the PRO before net payment, and ensuring remittance happens on time. Errors in the calculation or late submission can trigger penalties, so accuracy in the monthly payroll cycle matters.
Personal income tax withholding
North Macedonia applies a flat personal income tax (PIT) rate of 10% on employment income. There’s no progressive rate structure in force for 2026; the single flat rate applies regardless of salary level.
How pit is calculated
PIT isn’t applied to the full gross salary. The taxable base is calculated in two steps:
- Deduct employee social contributions (28%) from gross salary.
- Deduct the monthly personal allowance of MKD 10,932.
The 10% PIT rate is then applied to whatever remains.
For example, on a gross salary of MKD 38,507:
- Social contributions (28%): MKD 10,782
- Salary after contributions: MKD 27,725
- Monthly personal deduction: MKD 10,932
- Taxable income: MKD 16,793
- PIT at 10%: MKD 1,679
The monthly personal deduction (MKD 10,932) corresponds to an annual non-taxable amount of MKD 131,184. You apply this deduction every month as part of your routine payroll calculation.
Remittance deadline
PIT must be remitted to the Public Revenue Office by the 15th of the month following the payment of salary. You’re required to submit your payroll calculation to the PRO before you pay net salaries to employees, so the filing step comes first.
What it costs to employ someone in north macedonia
Because there’s no employer-side social contribution, the total cost of employment is simply the agreed gross salary. There’s no markup percentage to add on top.
Here’s a full worked example at the minimum wage of MKD 38,507 gross per month:
| Component | Rate | Monthly amount (MKD) |
|---|---|---|
| Gross salary | 38,507 | |
| Pension and disability (employee) | 18.8% | 7,239 |
| Health insurance (employee) | 7.5% | 2,888 |
| Employment insurance (employee) | 1.2% | 462 |
| Additional health insurance (employee) | 0.5% | 193 |
| Total social contributions | 28% | 10,782 |
| Salary after social contributions | 27,725 | |
| Monthly personal deduction | 10,932 | |
| Taxable income | 16,793 | |
| Personal income tax (10%) | 1,679 | |
| Net salary paid to employee | 26,046 |
Your cost as the employer is MKD 38,507. That’s it. All deductions above come out of that gross figure before the employee receives their net pay. You don’t contribute anything additional to social funds beyond administering and remitting the amounts withheld.
This structure makes North Macedonia one of the more predictable hiring markets from a cost-budgeting perspective. You know your total monthly spend the moment you agree on a gross salary.
How an EOR manages north macedonian employer taxes
If you want to hire in North Macedonia but don’t have a registered legal entity there, you can’t run local payroll directly. Setting up a Macedonian subsidiary involves company registration, a local corporate structure, and ongoing compliance obligations with the Public Revenue Office. For most companies hiring one or a small number of employees, that setup cost rarely makes sense.
An Employer of Record (EOR) provides an alternative. The EOR employs your worker under a compliant North Macedonian employment contract, handles the full monthly payroll cycle, withholds social contributions and PIT at the correct rates, files payroll declarations with the PRO before each payment, and remits all amounts on time. You pay the gross salary to the EOR and the compliance infrastructure is handled end to end.
For teams that are already working with independent contractors in North Macedonia and are thinking about converting them to full employment, an EOR makes that transition straightforward without requiring you to build local legal infrastructure first.
RemotePass offers EOR services across North Macedonia and a broad range of other markets, with payroll compliance, contract management, and HR administration built into a single platform.
If you’re ready to hire in North Macedonia and want the payroll handled correctly from day one, you can book a demo at remotepass.com/request-demo to see how it works.
