Setting up and managing payroll in Macedonia
Macedonia, now officially called North Macedonia, has developed significantly in recent years and is now increasingly recognized as a good place to do business.
If your organization is looking to expand into Macedonia, one of the first steps will be hiring employees locally, and this requires setting up a payroll in the country. While it is certainly possible to do this, Macedonia’s unique employment laws, as well as language and cultural barriers, can cause delays and make it a lengthy process for foreign businesses.
One way to bypass the process of setting up a payroll in Macedonia is to outsource the complex administrative work and ongoing management. At Horizons, we will establish and run your Macedonia payroll, ensuring full compliance with local legislation. Our outsourcing services are perfect for organizations with or without a Macedonia-based entity.
Why choose the Horizons payroll solution?
If you have an entity
Does your organization have a subsidiary in Macedonia? We can help you to create and run your payroll in Macedonia. In addition, we can provide HR, contract, and legal compliance support meaning you won’t have to worry about any of the complex administration and can focus on your expansion efforts.
If you don’t have an entity
If your company does not have an established entity in Macedonia, we can recruit your new workforce through our Macedonia subsidiary. This service enables your organization to bypass the long and complex process of establishing an entity. Additionally, we can provide our standard payroll and setup service to help you focus solely on a successful expansion into Macedonia.
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Macedonia payroll guide
What are payroll tax and withholdings rules in Macedonia?
- Pension insurance = 18%
- Employment insurance = 1.2%
- Health insurance = 7.3% (+0.5% for additional insurance)
The income tax rate in Macedonia is 10% to 18%, depending on income level.
The corporate tax rate in Macedonia is 10%.
Entitlements and terminations
Employees in Macedonia are usually entitled to at least one month of notice prior to termination. Additionally, it is common for employers to be required to assist with finding employees a new role, covering the cost of training in new skills, or paying severance of one month of salary for every two years of service. The exact details of severance and termination rights should be laid out clearly in each employment contract.
How to establish a Macedonia payroll
In general, businesses trying to set up a payroll in Macedonia are required to register a legal entity in the country. This process can be complex and time-consuming, and it is important to follow the national regulations to avoid fines and legal issues.
The easiest way to access all the benefits of employing locally, with none of the difficult administration, is to outsource to Horizons. We will offer our Macedonia subsidiary to act as the employer of record for your local workforce, whether you already have an entity in Macedonia or not.
We can also take care of the payroll setup and management, as well as any HR, legal compliance, contracts, and more. This flexible and tailored service is designed to help you successfully expand into Macedonia without delays.
Manage payroll in Macedonia
Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.