Legal Alert - Amendments of the Macedonian Law on Minimum Wage

With the latest amendments of the Law on Minimum Wage, as of September 2017, the minimum monthly wage in Macedonia is set at MKD 17,130 gross which under the current tax and SSC rates would mean MKD 12,000 net. The minimum wage determined with the amendments does not include the premiums provided in the applicable legislation (work in shifts, night work, work on holidays, overtime, etc.).

As a novelty, along with the increased costs for the employer, the amendments introduce two important changes which just recently were explained in greater detail by the relevant authorities: 

• The introduction of KPIs as criteria for determining the minimum wage of a particular employee. The KPIs would be relevant only for the employers which intend to pay wages below the determined minimum. 
• State aid would be available for employers which have paid wages lower than the new minimum in the months of January, February and March 2017. The eligible employers for such state aid would be those which are not exempt from payment of social contributions and personal income tax for the particular employee and which:
  • are active companies; 
  • incurred losses in FY16, or their net profit was lower than 10% of the total expenses; 
  • have paid all salaries, contributions and taxes as at the last day of the month for which aid would be granted. 

As provided in the amendments, the Aid would be related to a particular employee and not to a job position.