"The Former Yugoslav Republic of Macedonia"

There is no separate social protection system for self-employed people in Macedonia. In principal similarly as wage earners all self-employed persons are obligatory covered for social security in the general system in the areas of benefits-in-kind for sickness and maternity, as well as benefits- in-cash for sickness, maternity, old-age, invalidity, survivors and to some extent family benefits.

Provisions of the Law on Obligatory Social Insurance Contributions (Official Gazette No.142/2008) set out a clear definition for self-employed person in the Macedonian social protection system. Self-employed person is any natural person who independently runs an economic activity (business) as well as any person who renders professional and other intellectual services and makes earnings out of it.

Examples include sole proprietors or members of partnership in crafts, commerce, transport, catering, but also experts who full or part time deliver consultant services as freelancers (lawyers, accountants, translators, journalists etc.) if registered as sole proprietors.

In addition in all social security legislation there is a reference to the following specific categories of insured persons for which specific rules apply other than those for wage earners:

-    Individual (family) farmers

-    Individual artists who have acquired such status in accordance with the criteria, procedure and respective act of the Minister of Culture, Professional sportsmen;

Financing

Contributions for self-employed and farmers are calculated by applying fixed percentage rates that are same with those for wage earners. The basis on which contribution are levied are not the same. Differences exist between the self-employed, farmers and wage earners:

-    self-employed who run their own business: determined lump-sum net income being subject to tax payment which cannot be lower that the national average salary per employee announced for January the current year

-    farmers: 20% of the national average net salary per employee announced for January the current year

-    individual artists who have acquired such status in accordance with the criteria, procedure and respective act of the Minister of Culture, and professional sportsmen: national average salary per employee announced in January the current year provided that they have earned income higher than the annual amount of the minimum basis for calculation and payment of the contributions in the previous calendar year (193.608 Denars)

Contributions for self-employed and individual farmers may be levied on higher basis if they request so.

For the self-employed the basis for calculation of social insurance contributions cannot be higher than 8 times the national average salary per employee announced for January the current year

Contributions are paid by insured persons for themselves. The Pension Insurance Fund and Health Insurance Fund on the basis of their own data make the calculation of contributions to be collected from self-employed persons and for individual farmers. Public Revenue Office is responsible for control and collection of all contributions.

Contributions for all health insurance rights (excluding employment injuries):

7,3% of the respective basis

Contributions are paid by insured persons for themselves, exception being the individual artist and professional sportsmen.

For the risk of employment injuries and occupational diseases (temporary incapacity):

self-employed: 0.5% of their insurance base

farmers: Not applicable. They are not insured against the risk of temporary incapacity.

For the risk of old-age, invalidity, survivors, employment injuries and occupational diseases (long-term incapacity):

18% of the respective basis.

Unemployment

self-employed: 1.2% of their insurance base (monthly advance payment of the net income, i.e. the determined lump-sum net income being subject to tax payment)

               

Family benefits and long-term care are financed from general taxation.

Benefits in kind: Sickness and Maternity

The benefits are granted according to the regulations of the general system.

Cash benefits: Sickness and Maternity

Benefits are granted according to the regulation of the general system. Farmers are not entitled to cash benefits.

Invalidity

The benefit is granted according to the regulations of the general system.

Old-age

The benefit is granted according to the regulations of the general system. The benefits is calculated on the basis of the insurance period and reference earnings (the income on the basis of which the pension and disability insurance was paid).

Farmers cannot join the 2nd pension pillar. Members of farmers' family can voluntarily insured themselves against the risk of old age. Farmers are entitled to minimum pension according to the regulations of the general system, while those who acquired their rights according to special earlier regulation receive so called minimum farmer pension.

Survivors

The benefits are granted according to the regulations of the general system.

Employment injuries and occupational diseases

The benefits are granted according to the regulations of the general system.

Family benefits

For farmers and craftsmen who do old crafts and craftsmen who do crafts of short supply the benefits are granted according to the regulations of the general system. Child allowance is not granted if the parent or any family member is a sole proprietor or an owner of business premises,

Long-term care

No special scheme.The benefits are granted according to the regulations of the general system.