North Macedonia state institutions pay 64.5 million euros in labor disputes

A report by the State Audit Office reveals that North Macedonian state institutions paid approximately 3.97 billion denars (about 64.5 million euros) to settle labor disputes between 2020 and September 2025. Nearly half of this total, exceeding 31 million euros, was consumed by interest, court fees, and enforcement costs rather than the principal debt.

The audit highlights that 95.36% of these payments were collected forcibly through enforcement orders, with only 4.64% paid voluntarily. The number of active labor dispute cases has risen sharply, from roughly 9,300 in 2021 to over 24,000 in 2025.

Specific institutions heavily impacted include the Ministry of Internal Affairs, which paid 1.39 billion denars, and the Ministry of Defense, which paid 1.83 billion denars. Idrizovo Prison saw its budget strained, with labor dispute costs accounting for about 20% of its total approved budget. The Customs Administration was noted as a positive exception for making regular and voluntary payments. The State Audit Office criticized the lack of a systemic approach to managing these disputes and called for better preventive mechanisms and legal frameworks.