Hourly pay under discussion in North Macedonia: employers propose wage calculation by hours

A proposal to calculate wages in North Macedonia on the basis of hours worked — rather than a fixed monthly salary — has resurfaced after an initiative from the Union of Chambers of Commerce. The idea would tie employees' monthly pay to a set hourly rate multiplied by actual hours worked.

Key uncertainties: minimum hourly rate and legal details

The proposal has won at least tentative backing for discussion from the Confederation of Free Trade Unions (KSS), which says the current system should be re-examined. One of the most contentious questions is what the minimum hourly price would be; a figure of 150 denars per hour has been mentioned publicly, but there is no consensus yet on whether that amount would be adequate or if a higher floor should be set.

At a conference on minimum wages, KSS representatives did not put forward a concrete calculation for a minimum hourly payment. Their support for reviewing the issue has opened space for wider talks between unions, employers and the relevant authorities.

Employers argue that hourly pay could bring greater flexibility in organising work: payrolls aligned with actual hours worked could allow more efficient scheduling, clearer allocation of duties and a tighter connection between employee engagement and earnings. The Union of Chambers of Commerce stresses, however, that introducing an hourly rate would not give employers unlimited freedom to set hours arbitrarily; work organisation would still have to comply with laws, employment contracts and workers' rights.

Supporters of the change also point to potential productivity gains, saying a more flexible pay model could improve company performance and create conditions for higher incomes. But whether the reform would actually produce higher pay for workers — rather than only changing how earnings are calculated — depends largely on the level at which a minimum hourly rate is set and how other entitlements are handled.

To illustrate: if a worker logs 160 hours in a month and the hourly rate is 150 denars, the monthly wage would be 24,000 denars; for 176 hours the calculation would reach 26,400 denars. These figures are illustrative and do not represent an officially proposed wage level. It is also not yet decided whether any hourly rate would be quoted as a gross or net amount.

Several practical issues remain unresolved: how overtime, night and holiday pay would be calculated under an hourly system, and how allowances for annual leave, sick leave and other statutory absences would be preserved. Special attention will be needed for employees without fixed schedules, shift workers and those in seasonally fluctuating sectors, where monthly income stability could be affected.

The Government of North Macedonia has said it is ready to discuss the proposals but insisted further analysis is required to assess the economic and social consequences. No draft legal changes have been presented yet, and any final outcome will depend on negotiations among the Government, unions and chambers and on the results of the required analyses.

Photo: press material from the event