Assessment of the economic impacts of the 2017 increase in the minimum wage in North Macedonia

This report is the first ILO publication which specifically covers minimum wages in North Macedonia. We trust that this report will serve as a useful reference, particularly for the tripartite constituents as a means of facilitating an ongoing national social dialogue on the development of minimum wage policies in North Macedonia.

Following an official request of the Government of North Macedonia, the ILO conducted a study on assessing the impacts of minimum wage increase in 2017 with a particular focus on wage growth, wage distribution, and reduction of wage inequality in employment. The study is based on several components: (1) analysis of the available statistical data; (2) desk analysis of legislation and collective bargaining, (3) interviews with the key stakeholders confirming the applications of legislation and collective bargaining as well as data validity and (4) econometric analysis on the effects of the minimum wage. The findings of the study show positive short-run effects of increase in the minimum wage, particularly for low-paid workers and finds favourable effects on wage distribution and inequality.