The minimum monthly cost of living for a four-member household in North Macedonia surged to €1,038 (63,908 denars) in May 2025, rising by €20 (1,217 denars) from the previous month, according to the latest data from the Federation of Trade Unions of Macedonia (SSM), as reported by BV.
The increase was driven primarily by rising prices of basic food and beverages, which rose by €15.50 (954 denars), reaching a monthly cost of €365 (22,434 denars).
The SSM warned that the economic situation has deteriorated since the expiration of government-imposed price caps earlier this year. Without renewed interventions, they argue, the financial burden on low-income families will continue to intensify.
“There is a clear trend of uncontrolled price hikes, especially in basic food items, significantly eroding household purchasing power,” the union stated.
Wages Lag Behind Living Costs
The net minimum wage in North Macedonia currently stands at €397 (24,379 denars), covering only 38.15% of the union’s calculated cost-of-living basket. According to SSM, 2.62 minimum wages are needed to meet a family’s monthly needs. Even with the average salary of €700 (43,053 denars as of February), only 67.3% of monthly living costs are covered—meaning a family would need nearly 1.5 average salaries to make ends meet.
For families living in rented housing, the pressure is even greater. Renting a 60-square-meter apartment brings total monthly costs to €1,289 (79,283 denars), the union said.
Government Disputes Methodology, Proposes Alternative
The government plans to introduce its own model for calculating minimum living costs, based on seasonal goods and tailored to a typical three-member household. Officials argue the union’s basket does not accurately reflect real market conditions or the needs of all demographic groups.
SSM insists its methodology is inflation-adjusted and consistent, covering 11 essential categories including food and beverages, housing, clothing, healthcare, transport, education, recreation, and more.
- Calls for Immediate Wage Increases and Tax Relief
- Faced with growing inflation, the SSM is urging the government to:
- Raise the minimum wage to €500
- Increase salaries across the public and private sectors
- Abolish VAT on basic food products to provide direct relief to consumers
“The sharp rise in the union’s basket after government subsidies ended clearly shows that wage growth must keep pace with the rising cost of living,” SSM said.
So far, the government has not announced concrete measures beyond its proposal for a new cost calculation methodology.
Opposition Slams Government for Inaction
The opposition Social Democratic Union of Macedonia (SDSM) blamed the ruling coalition, led by VMRO-DPMNE and its partner ZNAM, for failing to curb inflation and protect citizens from rising living expenses.
“In May alone, the union’s basket increased by €20. Families now need nearly €1,040 per month just to survive,” SDSM said in a statement, calling the current economic management a “failure.”
The party also criticized alleged public spending on luxury goods, citing government procurement contracts totaling €35,800 (2.2 million denars) for seafood such as octopus, shellfish, and salmon in April and May.
“While citizens scrape by on credit, the government feasts on fine dining,” the statement read.
SDSM reiterated its demands for urgent economic measures and pledged to continue fighting for a dignified standard of living and a people-centered economy.