Overview
Effective with salaries paid for July 2026, North Macedonia updated its Law on Mandatory Social Security Contributions through amendments published in Official Gazette No. 148 (6 July 2026). These changes adjust contribution rates for different categories of work, and shift responsibility for calculating contributions for certain self-employed persons. (ujp.gov.mk)
What Changed
- Several new rate bands determine how contributions are calculated, depending on how months of work count toward insurance service time. For example: 6.63%, 4.98%, 3.32%, or 1.66% depending on whether “12 calendar months correspond to 16, 15, 14, or 13 months of service credit.” (ujp.gov.mk)
- For self-employed individuals taxed on a flat net income (“paushalno utvrden neto-dohod”): previously they calculated their own contributions; under the change, the Public Revenue Office (PRO) becomes responsible for calculating the contributions. Payment obligation remains with the individual. (ujp.gov.mk)
Who is Affected & Planning Tips
| Type of taxpayer | Effect on tax / contributions | What to do now |
|---|---|---|
| Employees whose job/security time is credited at accelerated rates (e.g. counting 12 months as 16) | They’ll pay 6.63%, highest band, increasing contribution for such tasks; other categories have lower rates (down to ~1.66%) | Check your employment contract, payroll classification; ensure employer categorizes task appropriately and payroll systems updated. |
| Self-employed on flat‐rate income | No change to who pays, but they no longer compute on their own; PRO handles calculation | Review past contributions to ensure consistency; expect new statements + checks; update accounting systems to accept PRO calculations. |
Compliance & Administrative Notes
- Employers and accounting bureaus must update payroll and software systems to reflect new rates from July 2026. Missing or incorrect application may cause underpayment or liability issues. (ujp.gov.mk)
- Flat-rate self-employed persons should verify calculation statements issued by PRO. Discrepancies should be raised early.
- Financial planning: impacts on net take-home income; budgeting may need adjustments for individuals moving into higher rate bands.
Example Scenarios
- A seasonal construction worker under a scheme counting 12 months of work as “16 months” will now have contributions at 6.63%. If before classified differently, may see substantial increase in deduction from wages.
- A self-employed café owner paying flat net income—under new law, they’ll receive a calculation from PRO rather than computing contributions themselves—expect a new statement showing liabilities for social contributions.
Key Takeaways
- Timing matters: changes effective for salary payments in July 2026 onward. Ensure updates are in place by July payroll runs.
- Rate categorization depends on task classification and service time equivalency—proper classification essential.
- PRO taking over calculation for flat-rate self-employed reduces compliance burden but requires oversight to catch any miscalculation.
- Overall result may be modest increases or decreases in contributions depending on category; taxpayers should review which band they fit into.