Skopje, 3 February 2026
The Minister of Economy and Labor, Besar Durmishi, today emphasized that the Law on Work Engagement of Persons, which began to be implemented on January 1, 2026, represents a significant step forward in regulating the labor market and formalizing the gray economy.
"The current period was intended for technical and institutional adaptation, in order for the implementation of the law to be efficient, harmonized and functional in practice. The formalization of the shadow economy is a strategic commitment of the Government and a key segment of the reform agenda, as it directly affects economic growth, the stability of public finances and the protection of workers," the Minister emphasized.
The Ministry of Economy and Labor has so far implemented active policies through the Operational Employment Plan, but analyses show that some people remain outside the formal flows. This is precisely why this law was adopted, which represents a fundamental reform in the part-time and seasonal hiring of labor.
The law introduces a more flexible and simplified model for legal engagement with a clear legal framework and electronic procedures for registration, deregistration and payment of contributions. The new rules allow for the engagement of employees, unemployed, students, pupils and pensioners without losing already acquired rights, including social and child rights, cash benefits, pensions and rights from the education system.
In the first phase, the law covers the sectors where the shadow economy is most pronounced – agriculture, forestry, fisheries, accommodation, food service activities and household activities. Expectations are for the formalization of up to 12.000 seasonal workers in agriculture and around 5.400 undeclared workers in tourism, hospitality and services, which in total covers around 17.400 persons.
"This reform brings concrete benefits for both workers and employers. Employers gain flexibility and simpler administrative procedures, and workers receive hourly pay, pension and disability insurance contributions, additional contributions to mandatory health insurance in case of injury or occupational disease, as well as clear legal protection of their rights," the Minister said.
Minister Durmishi extended special thanks to the German Society for International Cooperation (GIZ) for its expert and technical support, as well as to the Employment Agency, the Ministry of Finance, the Public Revenue Office and all other institutions that contributed to the establishment of a functional and efficient system.
