Labor Law: 10 Things Every Employer Must Know

1. Written Employment Contract

Every employment relationship must be formalized with a written employment contract. The contract must contain: the name and address of the employer and employee, start date, workplace and job description, working hours, salary, and duration (fixed-term or indefinite). The contract must be concluded before the first day of work. The employer is required to register the employee with the Employment Agency (AVRM) and the Health Insurance Fund.

2. Working Hours: 40 Hours Per Week

Full-time working hours in Macedonia are 40 hours per week, or 8 hours per day. Working hours cannot exceed 40 hours per week, except in cases of overtime. The employer must provide a break of at least 30 minutes for working periods longer than 6 hours. Reduced working hours (less than 40 hours) can be agreed upon for positions with special conditions.

3. Overtime Work

Overtime work is permitted but strictly regulated. An employee cannot work more than 8 hours of overtime per week and a maximum of 190 hours per year. Overtime must be paid at least 135% of the base salary. The employer is required to keep records of overtime for each employee.

• Maximum 8 hours of overtime per week
• Annual limit: 190 hours of overtime
• Mandatory supplement: minimum 35% above base salary
• Night work (22:00 - 06:00): 35% supplement
• Work on public holidays: 50% supplement
• Mandatory written records for every hour

4. Minimum Wage

The minimum wage in Macedonia is determined by law and updated periodically. No employer may pay a salary below the established minimum. The net minimum wage for 2026 is approximately 20,175 denars. Salaries must be paid by the 15th of the following month. The employer is required to issue a payslip with a detailed breakdown of gross salary, contributions, and net salary.

5. Annual Leave

Every employee has the right to paid annual leave of at least 20 working days. The number of days can increase based on years of service, job complexity, and other criteria, but cannot exceed 26 working days. Annual leave can be used in parts, but one portion must be at least 10 consecutive working days.

• Minimum 20 working days of annual leave
• Maximum 26 working days (with seniority additions)
• At least 10 consecutive days in one portion
• Unused leave carries over until June 30 of the following year
• Employer cannot refuse leave without justified reason
• Upon termination — right to compensation for unused leave

6. Sick Leave

Employees are entitled to paid sick leave. The first 30 days of sick leave are covered by the employer, who pays 70% of the base salary. After the 30th day, sick leave costs are transferred to the Health Insurance Fund (FZOM). Sick leave requires a medical report from a general practitioner or specialist. The employer must report sick leave in the MPIN form.

7. Maternity Leave

Female employees are entitled to maternity leave of 9 months with full salary compensation (covered by FZOM). For twin pregnancies and the third or subsequent child, maternity leave is 12 months. Fathers are entitled to 7 paid working days of paternity leave after the birth of a child. The employer may not terminate the employment contract of a pregnant employee or an employee on maternity leave.

• Maternity leave: 9 months with compensation
• Twins or third child: 12 months
• Paternity leave: 7 working days
• Protection from dismissal during pregnancy and maternity
• Right to return to the same or equivalent position
• Prohibition of night and overtime work for pregnant employees

8. Notice Periods

When giving notice, both the employer and employee must observe a notice period. The minimum notice period is 1 month and can be up to 3 months depending on years of service and the contract. During the probation period (up to 6 months), the notice period is 7 days. The employer may release the employee from work during the notice period but must pay the salary for that period.

9. Termination Rules

The employer may terminate employment only for justified reasons: business reasons (technological redundancy), personal reasons (inability to perform work), or behavioral reasons (breach of work discipline). A legal procedure must be followed before termination.

• Mandatory written warning before termination for behavioral reasons
• Business redundancy: mandatory program for resolving surplus staff
• Severance pay: minimum 1 net salary for every 2 years of service
• Prohibition of discriminatory dismissal (gender, age, ethnicity)
• Employee can file a lawsuit within 15 days
• Court protection: reinstatement or damages compensation

10. Labor Inspection Penalties

The State Labor Inspectorate conducts regular and extraordinary inspections of employers. Non-compliance with labor legislation carries serious penalties that can endanger the business.

• Unregistered worker: fine of EUR 3,000 to 5,000 equivalent in denars
• Unpaid wages: fine of EUR 1,000 to 3,000
• Working hours violations: fine of EUR 500 to 1,500
• Workplace safety violations: fine up to EUR 5,000
• Repeat offense: the fine is doubled
• Serious violations: possible temporary business closure

How Facturino Helps With Compliance

Facturino helps you comply with all legal obligations related to employees. Our system automatically calculates salaries according to the minimum wage, tracks overtime, manages annual leave and sick leave, and generates MPIN forms ready for UJP. With Facturino, you are always in compliance with labor law.

• Automatic salary calculation according to legal minimum
• Overtime tracking and limit monitoring
• Annual leave and sick leave management
• MPIN and payslip generation
• Reminders for legal deadlines
• Records ready for inspection audits