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North Macedonia has a flat 10% income tax (one of Europe's lowest), high combined PIO pension contributions (employer + employee both 18.8%), MKD 20,175/month minimum wage, and a growing Skopje IT outsourcing sector. Rippling handles PRO, PIOM, and North Macedonia Labour Law compliance.
North Macedonia is a Western Balkans upper-middle-income country and EU candidate state. Skopje is the primary business hub with a growing IT outsourcing, BPO, and shared services sector. North Macedonia has a flat 10% income tax, a young multilingual workforce, and salaries significantly below Western European levels. North Macedonia uses the Macedonian denar (MKD). EU accession negotiations are ongoing.
| Contribution | Rate | Notes |
|---|---|---|
| PIO (pension, employer) | 18.8% | On gross salary; employer mirrors employee rate |
| ZZO (health, employer) | 7.3% | On gross salary |
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| Contribution | Rate | Notes |
|---|---|---|
| PIO (pension, employee) | 18.8% | On gross salary |
| ZZO (health, employee) | 7.3% | On gross salary |
| Income tax | 10% | Flat rate; one of the lowest in Europe |
| Taxable Income | Rate |
|---|---|
| All employment income | 10% flat |
Applied on gross minus employee social contributions (PIO 18.8% + ZZO 7.3% = 26.1%). Monthly withholding by employer; remitted to PRO.
Notice: 1 month standard. Severance (redundancy): 1 month/year of service (minimum 2 years). Documented justified grounds required. Written notice mandatory.
North Macedonia has a flat 10% personal income tax — one of the lowest rates in Europe alongside Bulgaria and Romania. Applied on gross salary minus employee social contributions (26.1% combined PIO + ZZO). This makes North Macedonia's effective income tax burden relatively low. Employer withholds monthly and remits to the Public Revenue Office (PRO).
North Macedonia's minimum wage is MKD 20,175/month (2024), set by the government. North Macedonia has been increasing minimum wages as part of accession-path reforms. EU candidate status (since 2005, with accession negotiations ongoing) drives labor law reform toward EU standards.
North Macedonia is a Western Balkans economy with a growing IT outsourcing and business process outsourcing (BPO) sector in Skopje. North Macedonia has a young, educated, multilingual workforce (Macedonian, Albanian, English) and a flat 10% income tax rate that makes it attractive for companies. Skopje's IT sector includes Seavus, Endava, and a growing community of software development companies.
Notice: 1 month (standard). Severance for redundancy: 1 month's average salary per year of service (minimum 2 years, no ceiling under statute; employment contracts may provide more). Dismissal requires documented justified grounds. Written notice required.
