Skopje, 3 February 2026 (MIA) – Formalizing the informal economy is among the government’s top strategic goals and a key segment of the reform agenda, as it directly impacts economic growth, public finance stability and protection of workers. State Statistical Office data show that in 2024 there were about 694,000 employed people in the country, with roughly 85,000 working informally. This is a serious challenge that requires systemic solutions, the Minister of Economy and Labour, Besar Durmishi, said Tuesday at a Government event presenting the Law on Work Engagement of Persons.

Durmishi said that the law introduces a more flexible and simplified model for legal work engagement, with a clear legal framework and electronic procedures for registration, deregistration and payment of contributions. It enables the engagement of employed and unemployed persons, students, pupils and pensioners without losing their acquired rights. Recipients of guaranteed minimum income will not lose their social and child benefits, the unemployed persons will not be removed from the register or lose their financial compensation, pensioners will continue to receive their pensions and students and pupils will retain their rights in the education system.

“With this law, we are sending a clear message that the state is committed to systematically tackling the informal economy and actively promoting the formal economy. This will result in more formal jobs, stronger protection for workers and a stable, predictable and fair business climate for companies investing in and contributing to the growth of the Macedonian economy,” Durmishi noted.

As announced at the event, the Ministry will launch a promotional campaign for the law under the motto “Fair Engagement.”

The participants underlined that through this law the government is sending a clear message that labour reforms are not merely declarative, but tangible and implementable. The formal economy, worker protection, fair competition, and digital transformation represent a shared responsibility and a common interest for all stakeholders, particularly the state.

“The Law’s first phase focuses on sectors where the informal economy is most widespread – agriculture, forestry, fisheries, accommodation, food services, and household work. According to analyses, up to 12,000 seasonal agricultural workers and around 5,400 undeclared workers in tourism, hospitality, and services are expected to become formal, covering roughly 17,400 people in total,” Durmishi stated.

He noted that this reform offers concrete benefits for both workers and employers. Employers gain flexibility and simpler administrative procedures, while workers benefit from hourly pay, pension and disability insurance contributions, additional coverage for mandatory health insurance in case of work-related injuries or occupational diseases, and clear legal protection of their rights.

“Today, we are discussing the law that is already in effect and represents a significant step forward in regulating the labour market. The Law on Work Engagement of Persons came into force on January 1, 2026 and this period has been used for technical and institutional adaptation to ensure that its implementation is efficient, coordinated and functional in practice. The Ministry of Economy and Labour has been carrying out active policies through the Operational Employment Plan, but analyses revealed that some people continue to remain outside the formal system. This is precisely why the law was adopted, marking a key reform in the management of temporary and seasonal workforce engagement,” Durmishi said.

He thanked the German Agency for International Cooperation (GIZ) for its expert and technical support in the preparation and implementation of the Law on Work Engagement of Persons, as well as the Employment Agency, the Ministry of Finance, the Public Revenue Office, and all other institutions directly involved in setting up a functional and efficient system.

Photo: MIA