According to the Law on Labor Relations of North Macedonia, a salary comprises the basic salary, a portion based on work performance, and various allowances. The law specifies that these allowances are established for specific work conditions, such as those arising from the work schedule, including shifts, split working hours, night shifts, on-call duty, extended work hours, work on rest days, holidays mandated by law, work on Sundays, and seniority benefits.

For all private sector employees in North Macedonia, the General collective agreement for the private sector of the economy applies. This agreement explicitly outlines the allowances applicable to private sector workers.

Most Commonly Paid Salary Supplements

Per the law and the collective agreement, the employee’s basic hourly salary is increased by the following percentages:

• Overtime work: 35%
• Night work: 35%
• Three-shift work: 5%
• Work on weekly rest days: 50%

For work on holidays and non-working days mandated by law, employees have the right to receive compensation equivalent to their regular salary for those days, as well as a 50% increase for hours worked.

These allowances are not mutually exclusive; all applicable allowances are paid based on different criteria.

Seniority Allowance

The employee’s basic salary increases by 0.5% for each year of service. This right cannot be contractually excluded, as the Law on Labor Relations mandates that employment contracts specify the basic salary amount. Therefore, if the contract lists a certain salary amount without including the annual service-related increase, it is still assumed to be included.

It’s important to note that seniority is not limited to the specific job position. Even if an employee has gained experience in a completely different role, that work experience is considered when calculating the seniority increase, regardless of their current position.

Salary Allowances for Work in More Challenging Conditions

The basic salary increases when employees work in conditions more challenging than the norm for their specific job, including:

• Work tasks exposing workers to adverse environmental conditions (e.g., smoke, soot, extreme temperatures, noise).
• Work requiring protective gear (e.g., protective shoes, gas masks).
• Work involving special dangers (e.g., fire, water, explosions).

Specific percentage amounts for these challenging conditions are not detailed in the collective agreement. Instead, it is stated that, at the branch or department level, or at the employer level, conditions and the corresponding increases are determined collectively. These increases apply uniformly to all employees working under these more challenging conditions, irrespective of their individual salary levels.

In summary, these regulations provide a comprehensive framework for determining salary components and allowances for employees, ensuring fairness and consistency in compensation.

Learn more about the employee benefits and compensation on this link

Note: The above does not constitute legal advice and in no way can be accepted or understood as an instruction to act in a specific case. Each legal situation has its own characteristics that should be reviewed at separately, and for that reason we recommend that you contact a professional – a lawyer – for legal advice.