[co-author: Veton Qoku]*

New Internship Law

In 2019, the Parliament of North Macedonia adopted a new internship law, which allows companies to hire interns outside of the educational process.

Any unemployed citizen of North Macedonia under the age of 34, who has completed primary education, qualifies for an internship position under the internship law. The internship can last between one and six months and is limited to only one internship with the same employer. Intern remuneration is dependent on the length of the internship. The number of interns that an employer can hire depends on the number of full-time employees at the employer.

Increased Minimum Wage

A new minimum wage has been passed, continuing the growth trend from previous years. Applicable from December 2019, the minimum net wage cannot be below MKD 14,500 (approx. EUR 235) per month.

New Law on Personal Income Tax

The latest amendments to the law on personal income tax have put on hold for 36 months the relatively new progressive taxation system that was introduced in January 2019 and had introduced a new higher rate of 18 percent (rather than the previous 10 percent) for those who earned over a certain income. The Minister of Finance notes that progressive tax is not abolished, but just put on hold until January 2023 “for the purpose of establishing a fair, just and inclusive tax system which would result in a better developed society.”

Government Subsidizes Wage Increase

The Government of North Macedonia will subsidize contributions for mandatory social insurance pursuant to the newly adopted Law for Subsidizing Contributions for Mandatory Social Insurance due to Wage Increase. This law will be applicable from November 1, 2019, until October 31, 2022, and is subject to certain restrictions and financial limits.

*Karanović & Partners