Payroll in North Macedonia — Rates, Contributions & MPIN Filing (2026)
Running payroll in North Macedonia is straightforward once you understand the structure: all social contributions come from the employee's gross salary (no separate employer charge), the personal income tax is a flat 10%, and MPIN declarations are filed monthly by the 10th. Here are the exact figures for 2026.
Social contribution rates — 28% total from employee gross
Pension: 18.8%. Health: 7.5%. Unemployment: 1.2%. Additional health: 0.5%. Total: 28%. All deducted from employee's gross — no employer-side surcharge.
North Macedonia's social contribution system is employee-only — there is no additional employer-side contribution on top of gross salary. The total rate is 28%:
Pension and disability insurance (ПИО): 18.8% Health insurance: 7.5% Unemployment insurance: 1.2% Additional health insurance: 0.5% Total: 28.0%
This is significantly simpler than Serbia (35.05% split between employee and employer) or Romania (where CAS/CASS calculations vary by threshold). The employer's total cost is simply the gross salary plus any allowances (meal, transport).
Gross to net formula — with worked example
Net = Gross - (Gross × 28%) - ((Gross - Contributions - Personal Allowance) × 10%). Example: 40,000 MKD gross = ~26,912 MKD net.
Step 1: Calculate contributions. Contributions = Gross × 28% Step 2: Calculate taxable base. Taxable = Gross - Contributions - Personal Allowance (~MKD 10,932 from March 2026) Step 3: Calculate PIT. Tax = Taxable × 10% Step 4: Net = Gross - Contributions - Tax
Worked example for MKD 40,000 gross: - Contributions: 40,000 × 28% = 11,200 MKD - Taxable: 40,000 - 11,200 - 10,932 = 17,868 MKD - PIT: 17,868 × 10% = 1,787 MKD - Net: 40,000 - 11,200 - 1,787 = 27,013 MKD
Minimum wage from March 2026: approximately MKD 26,045 net / MKD 38,506 gross.
MPIN — monthly payroll declaration
MPIN (Месечна пријава за интегрирана наплата) is filed electronically via UJP by the 10th of the following month. Salary must be paid by the 15th.
MPIN is the monthly integrated collection declaration — it reports all employee data, gross salaries, contributions, and income tax to UJP (Public Revenue Office) in a single submission. Filing deadline: the 10th of the month following the salary period.
Salary must be paid to employees by the 15th. Contributions are paid simultaneously with salary — not separately. Late filing incurs penalties of MKD 3,000-30,000 per occurrence.
MPIN is filed electronically through UJP's e-Tax portal (e-tax.ujp.gov.mk). The system uses XML format and requires a digital certificate for submission.
IT Park and other tax incentives
IT Park residents benefit from reduced PIT (flat rate) and simplified contributions. TIDZ (free economic zones) offer 10-year CIT holiday for manufacturing.
North Macedonia offers several employment tax incentives:
IT Park regime: Available to technology companies meeting criteria. Benefits include simplified personal income tax treatment and reduced administrative burden.
TIDZ (Technological-Industrial Development Zones): Companies in free zones enjoy up to 10 years of CIT exemption, VAT exemption on imports, and customs duty exemption. Primarily targets manufacturing and R&D operations — not solo freelancers.
Reinvested profit exemption: CIT at 0% on profits reinvested in the business (equipment, expansion). This is available to all companies, not just special zone residents.
Young entrepreneur incentive: Reduced social contributions for newly registered businesses in the first 2-3 years.