When to engage a contractor and when to hire?

A contractor for clearly defined work with a short deadline and their own organisation of time; an employee for continuous work under instruction during working hours. The system flags engagements above four months or half of working time for review.

What is the tax rate for contractors?

10% personal income tax on the gross fee, after deemed expenses where they apply; no contributions and no personal allowance, unlike salary.

Can a contractor be abroad?

Yes. Non-resident rules and double-taxation treaties apply; payment and the return work the same as for a resident.

How does a contractor become an employee?

With one click: profile, documents and history carry over, an employment contract is created from a template and the person enters the next payroll run.

Merot HRS · Contractors

Contractor agreements with PDD-GI, without a separate ledger

Contractors live in the same system as employees: a templated agreement with digital signature, monthly payment with 10% personal income tax only, PDD-GI XML for the tax office and a bank order. The system warns when an engagement starts to look like employment.

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Contractor payment

October 2026 · website design

Line	Amount
Gross fee	40.000 ден.
Deemed expenses	by agreement type
Personal income tax 10%	4.000 ден.
Contributions	none
To pay	36.000 ден.
PDD-GI	XML for the tax office, generated

Example for a contractor agreement without deemed expenses; for author agreements the system applies deemed expenses by type.

What you get

A fee is a payment like any other.

#	Feature	Scope
01	Templated agreements	Contractor and author agreements in Macedonian or Albanian, filled from the profile; digital signature by both parties, PDF in documents.
02	Personal income tax only, 10%	No contributions and no personal allowance; deemed expenses by agreement type where they apply.
03	PDD-GI XML for the tax office	The monthly return for contract payments, in the prescribed format, from the same screen as MPIN.
04	Disguised-employment warning	An engagement longer than four months or above half of working time is flagged for review; one-click conversion to employee with the data carried over.
05	Delivery and approval	The contractor submits the work and the invoice or statement; the manager approves before payment.
06	Order and posting	A bank order per payment and posting into Merot Finance when connected; an annual view per person.

How it works

From agreement to PDD-GI.

01Profile and agreementID or tax number, bank account, agreement type, price per project or per month.

02Digital signatureBoth parties sign in the app; a time-stamped PDF goes to documents.

03Monthly paymentDelivery, approval, calculation with personal income tax and a bank order.

04PDD-GI to the tax officeXML for the month, for all contract payments, from the same screen as MPIN.

Key facts

Contractors and PDD-GI: in one table.

Tax	10% personal income tax on the gross fee (after deemed expenses where they apply); no contributions
Return	PDD-GI XML for the tax office, monthly, for all contract payments
Documents	Contractor agreement, author agreement, payment confirmation, annual view per person
Price	Included from the Growth plan (MKD 9,900 + 100 per employee)
Trial	30-day trial with full functionality; every organisation gets its own address company.merot.com

Updated: 2026-09-14

Contractor agreements with PDD-GI, without a separate ledger

A fee is a payment like any other.

From agreement to PDD-GI.

Contractors and PDD-GI: in one table.

When it is a contract for work, and when it is employment.

Frequently asked questions

Other features of Merot HRS.

See the process with your own data