Payroll Calculation in Macedonia: Contributions and Taxes

Salary structure: Gross to net

Salaries in Macedonia are calculated from the gross amount (total employer cost) to the net amount (what the employee receives). The difference consists of mandatory social contributions and personal income tax. The employer is obligated to calculate, withhold, and remit all contributions and taxes before paying the net salary.

Mandatory contributions (2026 rates)

Social contributions in Macedonia are calculated on the gross salary and are paid by the employee (withheld from the gross salary). The employer is responsible for calculating and remitting them.

1. 1

   Pension and disability insurance — 18.8%

   The largest contribution, directed to the pension fund (PIOM). Of this 18.8%, a portion goes to the mandatory second-pillar pension fund (6% for persons born after 1967). The base is the gross salary, with a minimum base of 50% and maximum of 16 average salaries.

2. 2

   Health insurance — 7.5%

   Contribution to the Health Insurance Fund (FZO). Provides healthcare coverage for the employee and family members. Calculated on the gross salary with no upper limit.

3. 3

   Employment contribution — 1.2%

   Contribution to the Employment Agency. Provides the right to unemployment benefits. Calculated on the gross salary, same as health insurance.

4. 4

   Personal income tax — 10%

   Personal income tax is calculated on the base which is the gross salary minus social contributions (18.8% + 7.5% + 1.2% = 27.5%). The rate is flat — 10% for all income levels. Remitted to UJP monthly.

Example: Salary calculation

Let us assume the gross salary is 40,000 MKD. Here is how the net salary is calculated:

• Gross salary: 40,000 MKD
• Pension insurance (18.8%): 40,000 x 0.188 = 7,520 MKD
• Health insurance (7.5%): 40,000 x 0.075 = 3,000 MKD
• Employment contribution (1.2%): 40,000 x 0.012 = 480 MKD
• Total contributions (27.5%): 11,000 MKD
• Tax base: 40,000 - 11,000 = 29,000 MKD
• Income tax (10%): 29,000 x 0.10 = 2,900 MKD
• Net salary: 40,000 - 11,000 - 2,900 = 26,100 MKD

Minimum wage and MPIN

• Minimum net wage for 2026: 18,000 MKD (approximately 292 EUR). Every employer must pay at least the minimum wage for full-time employment.
• MPIN (Monthly Calculation of Individual Findings) — an electronic form submitted to UJP every month. Contains data for each employee: gross salary, contributions, tax, and net salary.
• MPIN filing deadline: no later than the 15th of the month for the previous month. Late filing penalties range from 500 to 2,000 EUR.
• Contribution and tax payment: must be made before or simultaneously with the net salary payment. You may not pay salaries without prior contribution payment.
• Contributions are paid to a single account at the Public Revenue Office (UJP), which then distributes them to the respective funds.

Employer obligations

1. 1

   Calculate salary accurately

   Each month, calculate all components: gross salary, contributions, tax, and net salary. Account for overtime, sick leave, annual leave, and other variables that affect the amount.

2. 2

   Submit MPIN to UJP

   Electronically submit the MPIN form via the e-Tax portal (etax.ujp.gov.mk) no later than the 15th of the month. The form contains detailed data for each employee individually.

3. 3

   Remit contributions

   Pay social contributions and tax to the single account at UJP. Payment must be completed before paying net salaries to employees.

4. 4

   Pay net salary

   After remitting contributions and tax, pay the net salary to each employee's bank account. Keep receipts for all payments.

5. 5

   Issue pay slip

   Each employee has the right to receive a monthly pay slip with a detailed breakdown of all salary components: gross amount, contribution deductions, tax, and net salary.

How Facturino automates payroll

Facturino simplifies the entire payroll process for Macedonian businesses. The system automatically applies current contribution and tax rates, generates MPIN forms ready for UJP submission, and creates pay slips for each employee in a format compliant with Macedonian regulations.

• Automatic gross-to-net calculation with current 2026 rates
• MPIN form generation ready for UJP
• Pay slips in Macedonian per MPIN standard
• Support for overtime, sick leave, and holidays
• Automatic updates when rates or minimum wage change
• Reports for total payroll costs by month, department, and employee