1. Rate/Percentage changes affecting payroll
- Personal income tax base (Tax-free allowance):
- New monthly tax-free allowance: 10,932.00 MKD.
- Impact: This portion of the salary is no longer taxed, resulting in an automatic increase in net salary.
2. Minimum salary/Wage changes
- Minimum gross salary: 38,507.00 MKD.
- New minimum net salary: Increases to 26,046.00 MKD (up from 24,445.00 MKD).
3. Social security contribution changes
The Government of North Macedonia has introduced a temporary adjustment to the allocation of mandatory social security contribution rates, effective 1 July 2026. The updated contribution rates are:
- Pension and disability insurance: 19.9% (previously 18.8%)
- Health insurance: 7.5% (no change)
- Disability insurance: 0.5% (no change)
- Unemployment insurance: 0.1% (previously 1.2%)
The total social security contribution rate remains unchanged at 28%. Only the allocation between pension, disability insurance and unemployment insurance has been adjusted. This means there are no changes in employees’ net salaries and employers’ costs.
