Get the Latest Guide for Hiring in North Macedonia
Topics Covered
- What should I know about hiring in North Macedonia?
- Why is North Macedonia a great choice for hiring remote employees?
- How can NearWork help you hire in North Macedonia?
- Legal requirements for hiring in North Macedonia
- Advantages of hiring employees from North Macedonia vs. other countries
- Why choose NearWork for hiring in North Macedonia?
What Should I Know About Hiring in North Macedonia?
Hiring in North Macedonia is a great opportunity for businesses aiming to expand their workforce efficiently. The country has a well-regulated labour system that balances fair employee treatment with employer flexibility. While North Macedonia is outside the EU, its employment laws are straightforward and easy to navigate, making it a hassle-free process for businesses.
Key Considerations
- Employers must comply with minimum wage laws, working hours, and employee rights.
- Employment contracts must be in writing and clearly outline job roles, salaries, and terms.
- Hiring foreign workers requires compliance with work and residency permit regulations.
- Termination procedures and severance pay must be properly managed.
Why Hire Remote Employees from North Macedonia?
North Macedonia is an increasingly attractive destination for businesses seeking skilled remote employees. The country boasts a well-educated workforce, with a literacy rate of 97.8% and strong higher education participation. According to national statistics, approximately 35% of the working-age population holds a university degree, and in Skopje, the capital, 16% of residents are university graduates.
English proficiency is notably high among younger professionals in North Macedonia, with the country ranking in the top 40 globally in the EF English Proficiency Index. Approximately 85% of university graduates have advanced English skills, making communication seamless for international businesses. Additionally, English is widely taught in schools from an early age, further enhancing fluency among the workforce.
The cost of hiring in North Macedonia remains significantly lower than in Western Europe and the United States, providing companies with an opportunity to optimize their workforce budgets. Additionally, its strategic location in Southeastern Europe makes it an ideal base for businesses with operations across multiple European markets.
North Macedonia offers several benefits for companies looking to hire remote workers:
- Highly Educated Workforce: The country has a high literacy rate and skilled professionals. Most young people speak excellent English and have a university education, making them well-suited for international roles.
- Competitive Wages: Hiring in North Macedonia is cost-effective, with the average annual salary at £6,840 (£570/month) compared to £34,963 in the UK, a significant difference (Office for National Statistics, State Stats Office North Macedonia).
- Strong Work Ethic: Macedonian employees are known for their dedication and diligence.
- Cultural Diversity: Employees integrate well into international work environments.
- Strategic Location: Situated in Southeastern Europe, North Macedonia is well-positioned for businesses looking to expand into European markets.
How Can NearWork Help You Hire in North Macedonia?
NearWork provides comprehensive Employer of Record (EOR) services, ensuring companies remain compliant while expanding their workforce seamlessly. Our services go beyond hiring and onboarding; we manage payroll, taxes, and employee benefits so businesses can focus on growth without administrative burdens. Additionally, we provide assistance with visa and work permits for foreign employees, making international recruitment in North Macedonia easier than ever.
NearWork simplifies the hiring process with:
- Employer of Record (EOR) Services
- Onboarding Assistance
- Payroll Management
- Tax Compliance
- Employee Benefits Handling
- Visa and Work Permit Assistance
Legal Requirements for Hiring in North Macedonia
Employers looking to hire in North Macedonia must adhere to legal requirements that govern employment relationships. The country’s labour laws are designed to balance employee rights with business flexibility, ensuring fair treatment and a structured work environment. Employers must comply with contractual regulations, minimum wage policies, and working hour limitations. Proper documentation, including written employment contracts, is essential for legal compliance. Understanding these requirements helps businesses avoid legal complications while ensuring smooth operations.
Employment Framework
- Governed by the Labour Law
- Covers employment contracts, wages, working hours, leave policies, and termination conditions.
Types of Employment Contracts
- Fixed-term Contracts: Must specify duration and termination criteria.
- Indefinite-term Contracts: Provide long-term job security.
- Probation Period: Can be up to 4 months, allowing employers to assess new hires.
Salary & Benefits
- Minimum Monthly Salary: Approximately £300 (Net) / £450 (Gross)
- Mandatory Benefits: Health insurance, paid leave, and retirement contributions.
- Talent Attraction: Employers offering a base salary of £800-£1000 will attract the most skilled and experienced workers.
- Bonuses & Incentives: Many companies offer additional performance-based incentives.
Working Hours & Leave
- Standard workweek: 40 hours (8 hours/day)
- Paid annual leave: Minimum 20 days, extendable to 26 days
- Maternity leave: 9 months, extendable to 15 months for multiple births
- Paternity leave: Available and paid
- Sick leave: Covered by employers for the first 30 days, then by health insurance
- Public holidays: Several national and religious holidays are observed
Termination & Severance Pay
Understanding termination policies and severance pay obligations is crucial when hiring in North Macedonia. Employment contracts must specify conditions for termination, ensuring both employers and employees are aware of their rights and obligations. In cases of dismissal, employers must follow due process to avoid legal repercussions. Employees are entitled to severance pay based on their length of service, with specific guidelines in place to ensure fairness. Proper management of termination procedures protects businesses from disputes while ensuring employees are treated fairly.
Employment Termination
- Must follow legal guidelines for fair dismissal.
- Employees can resign at any time.
- Employers must provide valid reasons for termination.
Severance Pay
- Based on tenure:
- Up to 5 years: 1 month’s salary
- 5-10 years: 2 months’ salary
- 10-15 years: 3 months’ salary
- 15-20 years: 4 months’ salary
- 20-25 years: 5 months’ salary
- Over 25 years: 6 months’ salary
HMRC’s Perspective on Nearshore Working
HMRC views nearshore workers as a business expense, which can be offset against corporation tax. Since these workers operate outside the UK, they are not subject to UK employment law, making the hiring process significantly simpler and reducing tax liabilities for employers.
Key Considerations from HMRC:
- Business Expense Deduction: Payments made to nearshore workers are treated as a business expense, reducing overall corporation tax liability.
- No PAYE or National Insurance Contributions (NICs): Since nearshore workers are not considered UK employees, employers are not required to process PAYE or NICs, avoiding additional tax burdens.
- Simplified Compliance: Employers do not need to worry about UK employment law compliance, as these workers fall under their respective local regulations.
- No IR35 Implications: As nearshore workers are not UK-based contractors, IR35 regulations do not apply, further simplifying tax and payroll obligations.
- No Permanent Establishment Risks: As long as the business does not have a physical or managerial presence in the nearshore country, there is no risk of being classified as having a permanent establishment, avoiding additional corporate tax liabilities.
By hiring nearshore workers, businesses can streamline operations, reduce administrative overheads, and benefit from tax efficiencies, all while accessing top talent in global markets.
Why Choose NearWork for Hiring in North Macedonia?
- No Paperwork: We handle all necessary employment documents.
- Tax Savings: Assistance in tax management.
- No Company Setup Required: Expand via our legal entities.
- Online Onboarding: Hassle-free hiring experience.
- Full Accounting Support: Payroll, invoicing, and compliance.
- Profit Maximization: Reduce hiring risks and optimize costs.
- Compliance Expertise: Ensure adherence to North Macedonian labor laws.
- Local Support: Dedicated legal and compliance teams.