Countrypedia

Hire and manage employees in Albania

As your Employer of Record (EOR) in Albania, we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Last updated:
November 20, 2024
Your first name
Your last name
Your business email address
Your number
Your location
Describe jour project
Get in touch

Thank you!

Our expert will get back to you very soon
Oops! Something went wrong while submitting the form.

Quick facts

Albania, located in Southeastern Europe, has a growing economy driven by sectors such as agriculture, energy, and tourism. As a candidate for EU membership, Albania has made significant strides in modernizing its labor laws to align with European standards. These laws ensure fair working conditions, regulated working hours, and comprehensive employment benefits.

Employment Contracts

In Albania, various types of contracts are available:

  • Individual and Collective Contracts: For permanent or temporary employment.
  • Part-Time and Full-Time Contracts: Based on work hours.
  • Home-Based Employment Contracts: For remote work arrangements.
  • Employment Agency Contracts: For temporary roles.
  • Apprenticeship/Internship Contracts: For skill development.

Probation Period

The standard probation period in Albania is up to 3 months. During this period, either party may terminate the contract with a minimum of 5 days' notice.

Working Hours

The maximum working hours are 8 hours per day or 40 hours per week. Weekly rest includes at least 36 consecutive hours, with Sunday being a mandatory rest day. Overtime work is compensated as follows:

  • 20% higher pay for work from 7:00 PM to 10:00 PM.
  • 50% higher pay for work from 10:00 PM to 6:00 AM or on public holidays.

Overtime is capped at 200 hours per year.

Vacation Days

Employees are entitled to at least 4 weeks of paid annual leave. For partial years, leave is calculated proportionally. Unused leave is compensated upon termination. Employees may also request up to 5 days of paid leave for events such as marriage or the death of a close relative.

Sick Leave

  • The first 14 days of sick leave are paid by the employer at 100% of the gross salary.
  • From the 15th day onward, payments are covered by social insurance. The total sick leave period cannot exceed 6 months.

Wages and Salary Payment

Wages are typically paid monthly:

  • Salaried employees receive payments by the last working day of the month.
  • Hourly, daily, or weekly workers are paid every two weeks.

In 2024, the national minimum wage was €396.6 per month.

Public Holidays

Albania observes 15 public holidays, including:

  • January 1: New Year’s Day
  • March 3: Liberation Day
  • May 1: Labour Day
  • December 25: Christmas Day

If employees work on a public holiday, they must be compensated with 25% higher pay. If the holiday falls on a weekend, the following Monday is observed as a day off.

Employer Taxes

Employers contribute:

  • 15% of gross salary for social security.
  • 1.7% of gross salary for health insurance.

The minimum salary for social security calculations is 30,000 ALL, while the maximum is 132,312 ALL.

Employee Taxes

Employees contribute:

  • 9.5% of gross salary for social security.
  • 1.7% of gross salary for health insurance.

Income tax rates are:

  • 0% for salaries up to 30,000 ALL.
  • 13% for salaries from 30,001 to 150,000 ALL.
  • 23% for salaries above 150,000 ALL.

Notice Period

Notice periods depend on the length of service:

  • 5 days for employees in probation.
  • 2 weeks for employment up to 6 months.
  • 1 month for 6 months to 2 years of work.
  • 2 months for 2 to 5 years.
  • 3 months for over 5 years.

Termination and Severance Pay

Contracts may be terminated for justifiable reasons or by mutual agreement. If terminated without reasonable cause:

  • The employee can file a lawsuit within 180 days.
  • The employer must pay compensation up to 1 year’s salary, including notice period pay, if ordered by the court.
Share
Employee Cost Calculator

Forecast your employee cost in 180 countriesin a matter of seconds

Receive an accurate monthly payroll estimate with our free and easy-to-use tool. Optimize employer taxes and choose the best solution for your business.

Payroll Estimator

Country
Select country
Algeria
Angola
Argentina
Armenia
Aruba
Australia
Austria
Azerbaijan
Bahamas
Bahrain
Barbados
Belgium
Benin
Bermuda
Bolivia
Bosnia and Herzegovina - FBIH
Bosnia and Herzegovina - RS
Botswana
Brazil
Bulgaria
Cambodia
Cameroon
Canada "Alberta"""
Canada "British Columbia"""
Canada "Manitoba"""
Canada "New Brunswick"""
Canada "Newfoundland & Labrador"""
Canada "Nova Scotia"""
Canada "Ontario"""
Canada "Quebec"""
Canada "Saskatchewan"""
Cayman Islands
China (Beijing)
China (Shanghai)
Costa Rica
Croatia
Cyprus
Czech Republic
Denmark
Dominica
Ecuador
Egypt
El Salvador
Estonia
Ethiopia
Fiji
Finland
France
Georgia
Germany
Greece
Grenada
Guatemala
Guyana
Honduras
Hong Kong
Hungary
India
Indonesia
Ireland
Israel
Italy
Jamaica
Japan
Jordan
Kazakhstan
Kenya
Kuwait
Kyrgyzstan
Latvia
Lebanon
Lithuania
Luxembourg
Malawi
Malaysia
Malta
Mexico
Moldova
Montenegro
Morocco
Mozambique
Netherlands
New Zealand
Niger
Nigeria
Norway
Panama
Paraguay
Peru
Philippines
Poland
Portugal
Puerto Rico
Republic of Korea
Romania
Senegal
Serbia
Singapore
Slovakia
Slovenia
South Africa
Spain
Sri Lanka
Suriname
Sweden
Switzerland Zurich
Taiwan
Tajikistan
Tanzania
Thailand
The Dominican Republic
Trinidad and Tobago
Tunisia
Turkey
Turkmenistan
UAE
Uganda
Ukraine
United Kingdom
Uruguay
Uzbekistan
Zambia
Employee status
Local
Local
Expat
USD
USD
EUR
USD
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Estimate payroll cost

Estimate payroll cost

Description
USD Sum
USD Sum
Monthly Net Salary
00.00
00.00
Monthly Employer Taxes
00.00
00.00
Monthly Payroll Cost
00.00
00.00
These figures are purely estimates and for informational purposes only.For detailed information on payroll cost, please contact our specialists.

Employee Cost Calculator

We provide 3 Free estimates. To receive additional estimates, please share your email address so we can send them to you directly.
Your email address
Your email address
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.