Cover STORY
Cover STORY
Fall 2017 / Issue 55 gross cost for each new job is to be incorporated . Service activities with higher added value such as IT and telecommunications would receive support of up to 50 % of the cost of equipment in new investments costing up to EUR 50,000 .
The plan also foresees government support of SMEs by additionally covering 30 % of their direct expenses and those for training and professional development of employees .
For new green and brownfield investments , the plan would support 10 % of salaries paid for newly created jobs that are 50 % higher than the minimum wage . For every additional 10 % higher salary , this financial support would grow by 2 %, up to a maximum of 16 %. For creating jobs that pay over twice the average salary , investors shall receive government support equivalent to 20 % of those salaries . To qualify , ( i ) at least 80 % of new employees had to have been registered as unemployed with the State Employment Services Agency for at least three months prior to being hired ; or ( ii ) the new employees must have recently completed their educational process . This support would be provided for a period of five years from the establishment of each new company , if the company keeps the same number of employees for a period of at least 10 years .
Regarding foreign direct investments , if the investor procures 10 % of its production inputs from a Macedonian company above the average in the last three years , the financial support will be 1 % of the value of the procurement in a period of five years , while for every additional 10 % procurement from Macedonian companies , the support shall increase by 2 %. In every established or transferred development center , departments for technological development and research departments in companies that will be established in Macedonia , 20 % of the salaries of the highly-educated who are productively employed in the development centers and 30 % of the value of the new equipment shall be covered from the state budget for a period of 10 years .
Labor Market Reforms The Program promises reforms in the labor market directed toward achieving : Employment of 64,000 persons in a period of 4 years in the private sector using active measures ; Raising the minimum net monthly salary to MKD 16,000 ( roughly EUR 260 ) by the end of the term ; and Stimulating the payment of higher salaries ( leading to an increased projected average net salary of MKD 30,000 or about EUR 484 ).
The Government also plans to establish an overtime work registry , make collective agreements mandatory for all legal entities with more than 20 employees and provide shared parental leave in the first three months after the birth of a child .
Export support
The State will provide financial support of 10 % of the direct additional costs for companies with an annual increase in exports by at least 5 % over the average in the last 3 years . The increase in exports to Western Balkans countries would increase the financial support by 10 %, while aid for this measure could exceed 3 % of the increase in exports . For expanding into new foreign markets , companies would receive funding to cover 20 % of related costs .
It is difficult to assess the potential effectiveness and impact of the planned reforms at this point in time and with the currently available level of detail . Nevertheless , the Government will need to be careful in the implementation of the envisaged reforms so that they do not harm Macedonia ’ s competitiveness when it comes to attracting foreign investors . The Government will have to perform the difficult balancing act of introducing these reforms while simultaneously keeping and even advancing the inflow of foreign investments in the country .
New Member Highlights
Orbico is the largest distributor and supply chain management company in Europe and is present on the Macedonian market for more than 13 years . Orbico Macedonia is providing sales , brand management and logistic services of top quality to its business partners .
12 AmCham Macedonia Magazine