2.1. Funding of Early Childhood Education and Care (ECEC)

The financing of early childhood education and care (ECEC) in North Macedonia is mainly provided through the state budget, primarily under the responsibility of the Ministry of Labour and Social Policy, while municipalities are responsible for the management and operation of preschool institutions. Additional investments in preschool infrastructure and capacity expansion are increasingly supported through international programmes and development initiatives.

Public funding policies in recent years have focused on expanding preschool coverage, constructing new kindergarten facilities and improving the quality of early childhood services. However, the financing system still faces challenges related to limited intersectoral coordination and financial monitoring, as several institutions participate in early childhood policy implementation.

The current funding formula for preschool institutions is based mainly on the number of employees and the capacity utilization of preschool facilities. At the same time, the formula applies a relatively uniform approach across the country and does not fully reflect the cost differences between urban and rural areas.

Public expenditure on ECEC from the state budget

*Estimated based on recent national budget trends and policy reports.

Source: Ministry of Labour and Social Policy; national budget reports.

Funding of upper secondary education

Public secondary education in North Macedonia is financed primarily through the state budget, in accordance with the Law on Budgets, the Law on Execution of the State Budget and the Law on Financing of Local Self-Government Units. Financial resources are allocated from the central government to municipalities through block grants and earmarked grants, based on criteria defined in the governmental methodology for the distribution of education funds.

Municipalities are responsible for distributing these resources to secondary schools within their territory in order to ensure the implementation of the educational process and the functioning of schools in accordance with national standards and norms. The allocation of funds is based on a funding formula, which primarily considers the number of enrolled students. In addition, several objective factors may influence the distribution of funds, including the type of educational programme implemented in the school, the characteristics of the school facility, the geographical location of the institution and other structural factors affecting the costs of educational provision.

Municipalities may complement the allocated block or earmarked grants with additional resources from their own budgets, although these funds cannot be used to finance the salaries of school employees. Public secondary schools may also generate additional financial resources from various sources, including service participation fees, the sale of products and services related to practical training activities, partnerships with companies and institutions providing student internships, as well as funds obtained through approved projects, donations or other legally permitted sources.

In recent years, public funding policies have increasingly focused on modernization of secondary education, digitalization of learning environments and strengthening vocational education and training, particularly through the expansion of the dual education system and cooperation between schools and the private sector. These measures aim to improve the quality of education and better align secondary education outcomes with labour market needs.

Financial autonomy and control

The respective Ministries adopt a financial plan, criteria for allocation of funds and implements distribution of funds by users in the ECEC and primary and secondary education. The Ministry submits a report to the Government on the manner of disposing of the funds of the Republic of Macedonia. Data from the annual financial plans and the final accounts of the kindergartens, public primary and secondary schools, the municipality publishes in its official gazette.

The Ministries controls the intended use of the funds that are allocated from the Budget of the Republic of Northern Macedonia

Fees within public education

Fees in early childhood education and care (ECEC) – The prices of services provided by public preschool institutions are determined by the founder, i.e. the municipality, in accordance with the applicable Rulebook regulating the prices and services offered by public kindergartens. The municipal council adopts decisions that determine the level of parental participation in preschool services, which means that the price may vary across municipalities. The fee paid by parents represents a partial contribution to the total cost of care and accommodation, while the majority of the funding is provided through the state and municipal budgets. In recent years, several municipalities have adopted decisions to increase parental fees for kindergarten services due to rising operational costs and inflation, although the level of increase differs between municipalities. Traditionally, the parental contribution for a full-day programme in public kindergartens was around 1,490 denars (approximately 24–25 EUR) per month, but the final price depends on decisions adopted by the municipal councils.

Fees in primary and upper secondary education – Primary and upper secondary education remain part of the compulsory education system and are provided free of charge, in accordance with the Constitution and national education legislation. Public funding covers the main educational costs, including salaries of teachers, school infrastructure and basic teaching materials. Parents may occasionally contribute to certain extracurricular activities, school trips or additional learning materials, but participation in the regular educational process within public schools remains free of charge.

Financial support for learners' families

A comprehensive national programme that provides systematic financial support to all families with children in ECEC, primary and secondary education does not exist. However, several targeted measures support learners from vulnerable groups.

In recent years, particular attention has been given to programmes aimed at the inclusion of Roma students in education. For example, within the EU-funded project “Regular Class: Action for Inclusion of Roma in Primary Education”, scholarships were awarded to Roma pupils in the first and second grade of primary school. Each scholarship amounted to approximately 400 EUR per year, with the possibility of renewal for students who successfully continued their education.

In addition, various policy measures provide scholarships, transportation support and other forms of financial assistance for socially vulnerable students in order to reduce barriers to education.

Financial support for families of pupils with special educational needs

In recent years, education policies in North Macedonia have increasingly focused on strengthening inclusive education and supporting students with special educational needs (SEN). Several initiatives and projects have been implemented to support the inclusion of these students in mainstream education.

One example is the project “Be IN, be INClusive, be INcluded”, implemented by the Foundation for Educational and Cultural Initiatives “Step by Step” in cooperation with civil society organizations. The project provided scholarships and tutoring support for children with special educational needs enrolled in primary education, particularly in the early grades, aiming to facilitate their participation in regular schools and improve learning outcomes.

Financial support for learners

Public financial support for learners in upper secondary education is mainly provided by the Ministry of Education and Science through scholarship programmes. Scholarships are awarded to several categories of students, including:

• talented students,

• talented athletes,

• students from low-income families,

• Roma students,

• students with special educational needs,

• students without parental care,

• students in vocational education programmes for deficit occupations.

In addition, full-time secondary school students have the right to free transportation if the distance between their home and school is at least 2.5 km, while students studying outside their place of residence may receive free accommodation in student dormitories.

Private education

Private education in North Macedonia mainly consists of international and bilingual schools offering preschool, primary and secondary education. These schools operate with approval from the Ministry of Education and Science and are usually founded by private institutions or individuals.

Many institutions follow international curricula such as American, British or French programmes and often offer internationally recognized qualifications, including the International Baccalaureate (IB). Tuition fees vary depending on the school and programme but generally range between 1,000 and 5,000 EUR per year, reflecting the higher standards of facilities, smaller class sizes and extended extracurricular activities offered by these institutions.