EMPLOYMENT LAW

(LAW ON PAYMENT OF SALARIES AND PENSIONS

IN THE REPUBLIC OF MACEDONIA)

 

(Published in the

Official Gazette of the Republic of Macedonia No. 78/93-1861)

(Unofficial Translation)

 

 

Article 1

 

This Law is to regulate payment of net salaries, pensions and particular benefits of legal entities situated in the Republic of Macedonia.

 

The provisions of this Law, excluding article 8, do not refer to legal entities whose assets are in private ownership.

 

 

Article 2

 

The legal entity performing an activity determined in the fields from 01 to 11 and the legal entity performing an activity in the fields from 12 to 14, which is registered as an enterprise, shall pay net salaries in accordance with the general enactment, the collective agreement and this Law.

 

 

Article 3

 

The legal entity under article 2 of this Law, shall pay net salaries for December 1993 at a maximum of 95% of the average monthly salary per employee in the legal entity for the period August-September 1993 paid until November 10 1993 (base) and increased at the most by the cumulative increase rate of the costs of living for the period October-December 1993 in comparison to September 1993.

 

If the average monthly net salary per employee in the legal entity, paid for the period August-September 1993 is lower than 75% of the average salary paid in the economy for the relevant period, the legal entity may, in accordance with the data published by the Republic Statistics Bureau, increase its base up to 80% from the difference between the base and the 75% level of the average salary in the economy.

 

 

Article 4

 

The legal entity under article 2 of this Law shall continue to pay salaries for January 1994 up to the level determined for the previous month and increased at the most by:

 

- the increase rate of the costs of living in the current month in

comparison to the previous month, reduced by 1,5 percentage points; and

 

- 50% of the difference between the actual and the planed increase

of the costs of living in the current month in comparison to the

previous month.

 

 

Article 5

 

The legal entity performing an activity determined in the fields from 12 to 14, except for a legal entity registered as an enterprise, shall pay net salaries for December 1993 up to the level of 92% of the average monthly net salary per employee of the legal entity for the period August-September 1993 paid by November 10, 1993, and increased at the most by the cumulative increase rate of the costs of living for the period October-December 1993 in comparison to September 1993.

 

The legal entity under paragraph 1 of this article shall continue to pay salaries for January 1994 up to the level determined for the previous month and increased at the most by:

 

- the increase rate of the costs of living in the current month in

comparison to the previous month, reduced by 2,5 percentage points; and

 

- 50% of the difference between the actual and the planed increase

of the costs of living in the current month in comparison to the

previous month.

 

 

Article 6

 

The pensions for December 1993 shall be paid to the level of 92% from the payment right determined for that month. The payment of pensions for January 1994 shall continue to be reconciled with:

 

- the increase rate of the costs of living in the current month in

comparison to the previous month, reduced by 2,5 percentage

points; and

 

- 50% of the difference between the actual and the planed increase

of the costs of living in the current month in comparison to the

previous month.

 

The right under paragraph 1 of this article is determined at the level of the pensions paid in November 1993 and reconciled with the salary increase for November in comparison to October 1993.

 

If the pension of certain pension beneficiaries exceeds two average pensions paid the previous month, the reconciliation of such pensions in the current month shall be effected with 70% of the determined right under paragraph 2 of this article.

 

In order to implement paragraphs 1, 2, 3 and 4 of this article, the pensions earned from January 1 shall be previously computed at a monthly level according to the achieved level of pension reconciliation in December of the previous year compared to the entire year.

 

 

Article 7

 

The legal entity that failed to pay salaries for November and the previous months of 1993, shall pay the salary per employee for the appropriate month up to the average monthly net salary per employee paid by the legal entity the previous month and increased by the rate of the rise in living costs in the payable month compared to the previous month.

 

 

Article 8

 

The salary per employee, which is the base for computation of taxes and salary contributions, can not be lower than 65% of the average monthly net salary per employee in the economy of the Republic published in the current month.

 

The Ministry of Labor and Social Policy shall determine the base under paragraph 1 of this article, by the 20th day in the current month, and the same will be published in the Official Gazette of the Republic of Macedonia.

 

 

Article 9

 

The newly founded legal entity, that effects payment of salaries for the first time after the passing of this Law, is to pay salaries according to the general enactment.

 

 

Article 10

 

The legal entity that marks losses in the 1993 annual balance sheet, i.e., in the periodical estimates from January-June 1994, shall effect payment of salaries per employee at the level of 90% of the determined right under articles 4 and 5 of this Law, until the losses are covered.

 

 

Article 11

 

Payments of dividends, of salaries from daily revenues and payments of salaries and other salary allowances in coupons and in kind, are forbidden.

 

The legal entity is to effect payment of the salary solely in cash or a bank or post office issued check.

 

 

Article 12

 

The legal entity may effect payment of allowances for common consumption and material expenditures at the maximum of:

 

- 60% as an annual leave subsidy and

 

- two severance salaries for retirement.

 

The allowances under paragraph 1 of this article are computed on the basis of the average monthly net salary per employee in the economy of the Republic, published by the date of payment.

 

The allowances under paragraph 1 item 1 of this article are effected as single payments in the course of the year.

 

 

Article 13

 

The rates of increase under items 1 and 2 of articles 4, 5 and 6 are determined and published by the Ministry of Labor and Social Policy.

 

 

Article 14

 

The Minister of Labor and Social Policy prescribes the procedure for determining the amount of the salary funds, the formulation of the computation and submission to the institution for payment operations.

 

The regulation under paragraph 1 of this article shall be brought within one day after the this Law enters into force.

 

The institution for payment operations shall control the implementation of this Law.

 

 

Article 15

 

A fine from 150 to 200 salaries shall be levied for business violations against the legal entity effecting payment of salaries and pensions contrary to the provisions of this Law.

 

The person in charge of the legal entity shall be fined from five to ten salaries for business violations under paragraph 1 of this article.

 

Further to the fine for business violations under paragraph 2 of this article, a protective measure shall be pronounced - prohibiting the rendering of certain duties lasting from six months to one year.

 

 

Article 16

 

This Law shall enter into force the day following the date of publication in the Official Gazette of the Republic of Macedonia and shall be enforced until payment of salaries, allowances and pensions for December 1994.