Annual leave is not only a legal right but also a constitutionally guaranteed one for every employee in the Republic of North Macedonia. It represents a time for rest, recovery, and maintaining work capacity. Below, we explain in detail the key aspects of this right for 2025: when and how it is acquired, how long it lasts, what happens if it is not used, and who is entitled to a holiday bonus.
1. The Right to Annual Leave
1.1 When is the right acquired?
According to Article 139 of the Labour Relations Law (ZRO), any worker who establishes an employment relationship for the first time acquires the right to full annual leave after at least 6 months of uninterrupted work with the same employer, regardless of full-time or part-time employment. Once acquired, the right remains valid in subsequent years with the same employer.
1.2 How long is the leave?
- Minimum leave: 20 working days for full-time employees.
- Extended leave: May increase up to 26 days via a collective agreement or employment contract.
- For part-time workers, the minimum annual leave is 10 days.
Additional days are granted for specific categories:
- Women over 57 and men over 59 – plus 3 days.
- Disabled workers or parents of children with special needs – plus 3 days.
- Workers under 18 years – plus 7 days.
1.3 Leave calculation and exceptions
Public holidays, Saturdays, Sundays, and sick leave are not counted as part of annual leave. If an employee becomes ill during the leave, the leave is interrupted and resumes after recovery.
2. Compensation for Unused Annual Leave
2.1 When does the right apply?
The right to compensation for unused annual leave applies only if:
- The employment ends not due to the worker’s fault or will (e.g. dismissal for business reasons),
- The worker submitted a written request to use the leave, but was not allowed to do so.
👉 If the employee resigned or was dismissed due to their fault – no compensation is owed.
2.2 How is it calculated?
The compensation is based on the average monthly salary over the past 12 months, according to Article 112 of the ZRO.
Example: if the average daily wage is 1,100 MKD, for 10 unused days the compensation would be 11,000 MKD.
3. Holiday Bonus (K-15)
3.1 Who is entitled?
The holiday bonus (commonly known as K-15) is regulated by the General Collective Agreement for the private and public sectors. To be eligible:
- The employee must have worked at least 6 months for the same employer within the year.
- The work may be intermittent – continuity is not required.
Court practice confirms that maternity leave does not count as “work” for this purpose.
3.2 Bonus amount
- Minimum under the private sector agreement: 40% of the average net salary per employee in the country.
- Public sector: minimum 30%.
- A higher amount may be defined in a collective agreement.
- A lower amount is possible only with a formal agreement with the trade union, due to financial hardship.
📌 Example for June 2025: if the average net salary is 36,000 MKD, the bonus must be at least 14,400 MKD (40%).
3.3 Payment deadline
The general agreement does not set a specific date, but court rulings suggest:
- The bonus should be paid by the end of the year, or
- By June 30 of the following year, if linked to leave used the following year.
4. Using the Leave – Practical Guidelines
4.1 When to use it?
- Leave should be used within the current year, or by June 30 of the next year.
- At least 2 continuous work weeks must be used within the current year.
4.2 Leave decision document
Employers must issue a written decision for leave use. It should include:
- Number of days,
- Start and end dates,
- Whether taken all at once or in parts.
4.3 Proportional leave
If the employee has not worked the full 6 months, they are entitled to proportional leave – 2 days for each month worked.
Example: 3 months of work = 6 days leave.
5. Tax Treatment of the Holiday Bonus
The bonus is considered employment income and subject to personal income tax:
- Tax rate: 10% on the gross amount or 11.111% on the net amount.
- For corporate tax purposes, only up to 80% of the average gross salary is recognized as a deductible expense.
📌 Example: A company pays 70,000 MKD per employee to 30 employees – only 53,792 MKD per employee is tax deductible; the remainder is not.
6. Conclusion: What Should You Do?
For Employees:
- Ensure you receive a written leave decision.
- Submit written requests to use your leave.
- Keep records of used leave when changing jobs.
- Check your eligibility for the holiday bonus.
For Employers:
- Issue decisions for annual leave.
- Keep records of leave and bonus payments.
- Pay bonuses on time according to collective agreements.
- Notify the union if planning a lower bonus due to hardship.
