North Macedonia Social Contributions Guide 2026

Overview — Social Security in North Macedonia

North Macedonia's social security system is administered by three separate funds: the Pension and Disability Insurance Fund (Pension Fund), the Health Insurance Fund, and the Employment Agency (for unemployment insurance). Contributions are mandatory for all employees and are calculated on gross salary up to the maximum contribution base. The employer is responsible for deducting the employee's share from salary and remitting both employee and employer contributions to the PRO monthly. Self-employed individuals contribute at rates applicable to their declared income. The social security system provides coverage for pensions, healthcare, maternity leave, unemployment benefits, and occupational injuries.

Contribution Rates — Employee 18%, Employer 17.5%

The combined contribution rate is 35.5% of gross salary, split between employee and employer:

• Employee total — 18% of gross salary
• Employer total — 17.5% of gross salary

Breakdown of employee contributions (18%):

• Pension and disability insurance — 13%
• Health insurance — 3.5%
• Employment insurance — 1.5%

Breakdown of employer contributions (17.5%):

• Pension and disability insurance — 9%
• Health insurance — 7%
• Employment insurance — 1.5%

The maximum monthly contribution base (cap) is adjusted annually. For 2026, the cap is approximately MKD 350,000 per month. Contributions on salary above this cap are not required.

Pension Insurance

North Macedonia operates a multi-pillar pension system. The first pillar is a pay-as-you-go (PAYG) state pension funded by current contributions. The second pillar is a mandatory funded scheme managed by private pension funds. Employee pension contributions (13%) are split: 7% goes to the PAYG first pillar and 6% to the second pillar (private pension fund). Employer pension contributions (9%) go entirely to the first pillar. The standard retirement age is 64 for men and 62 for women (gradually increasing to 64). A minimum of 15 years of contributions is required for a state pension.

Health Insurance

Health insurance contributions (EE 3.5% + ER 7% = 10.5%) fund the national Health Insurance Fund (HIF). Insured individuals are entitled to: primary healthcare, specialist consultations, hospitalisation, prescription medicines (with co-payment), dental care (limited), maternity care, and emergency services. The HIF covers approximately 80% of the population. Non-residents and tourists should have private health insurance. Certain medical services require co-payments or are only available through private providers.

Employment Insurance

Employment/ unemployment insurance contributions (EE 1.5% + ER 1.5% = 3%) fund unemployment benefits and active labour market programmes. Unemployed workers who have contributed for at least 9 months in the last 18 months may claim unemployment benefits for 3-12 months depending on contribution history. The benefit amount is approximately 30-50% of the average salary in the last 24 months. Maternity leave is 9 months (fully paid) with an additional 3 months partially paid, funded through the health insurance system.

FAQs

What is the maximum contribution base for social contributions?

The maximum monthly contribution base is approximately MKD 350,000 for 2026. Salary above this amount is not subject to social contributions. The cap is adjusted annually based on average wage growth.

Can self-employed individuals opt out of social contributions?

Self-employed individuals must pay social contributions at the prescribed rates on their declared income (minimum based on minimum wage). There is no opt-out option, as contributions are mandatory for access to pension and healthcare.

Are foreign workers exempt from Macedonian social contributions?

Foreign workers employed in North Macedonia are generally subject to Macedonian social contributions unless covered by a social security agreement (bilateral agreement) with their home country. North Macedonia has social security agreements with several countries including Turkey, Bosnia and Herzegovina, Serbia, Montenegro, and others.

Disclaimer

This guide provides general information about North Macedonian social security contributions for the 2026 tax year. Contribution rates and caps may change. Always consult with a qualified Macedonian social security advisor or the Public Revenue Office for advice specific to your situation. InvestmentKit does not provide tax or legal advice.