Hire in Albania

Employer of Record(EOR) in Albania

Albania Workforce Unlocked: How Employer of Record Makes Hiring Easy

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At a Glance

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Albania is a developing country whose recent transition from a centralized economy to a free-market economy has resulted in the country’s steady growth since 2014. The country currently ranks as the 50th freest economy in the world due to the shift. Tourism and Agriculture are the main drivers of its economic success and have provided employment for most citizens.

Major economic hubs:

Tirana, Durrës, And Fier

Skills in demand :

Call Center Operators, Industrial Sewing Machine Operators, Waiters, And Counter Jobs, And Constructing Technical

Public and Provincial Holidays

Employee Leaves

Vacation Days in Albania

Employees are entitled to a minimum of 20 days of paid vacation leave, which may not be taken in amounts of less than one week. Additional vacation may be agreed to in the employment contract or collective bargaining agreement.

Albania Sick Leave

Employees are generally entitled to 14 days of sick leave, paid at an 80% rate by the employer.

Employees who are injured at work can receive compensation from social insurance.

Maternity/Paternity Leave in Albania

Employees are entitled to 365 days of paid maternity leave. 35 days should be taken before the expected due date and a minimum of 42 days must be taken after. After 42 days the employee can remain on leave or return to work. Women are paid 80% of their average daily wage for leave prior to the birth and up to 150 days after the birth. For the remaining leave, pay is given at 50% of her average wage. There is no statutory paternity leave.

Employees of either gender with dependent children are eligible for up to 12 days of paid leave to tend to a child. Those with children under the age of three are entitled to an additional three days. Unpaid leave of up to 30 days per year may also be taken to care for a child.


Resident Tax Brackets

All employers must make social security and health insurance contributions at a rate of 16.7%. Employees also pay into social security at a rate of 11.2%. Albania uses a progressive income tax system, and employees owe more as their salary and compensation increases. Employees earning between 0-30,000 Albanian Lek (ALL) owe 0%, while employees making 150,000 or above owe 15,600 Lek plus 23% of the amount over 150,000.

Health Insurance in Albania

Albania has compulsory universal healthcare which is funded through payroll taxes and the general budget. Private healthcare is also available.

Albania Supplementary Benefits

Some companies offer voluntary pension funds.


Performance-based bonuses are common in Albania.

Paying Taxes in Albania

Social security and health insurance contributions are paid by the employer at the rate of 16.7%.

Employees pay social security contributions at a rate of 11.2%.

Albania Compensation Laws

Albania’s current minimum wage is ALL 34,000 a month (September 2022). However, the country frequently chooses to raise its minimum wage, so you should watch for any changes that could impact your employees. All employees typically work 40 hours a week and eight hours a day. Employees who work on Sunday or a paid holiday should receive 1.25% of their regular wages.

Employers can also choose to provide time off instead of additional wages for overtime per Albania compensation laws.

Guaranteed Benefits in Albania

You must provide statutory benefits that Albania guarantees for all employees as part of your Albania benefit management plan.

For example, employees should get a minimum of 20 days of paid vacation leave each year that can’t get taken in less than one week. The country also celebrates 12 public holidays that all employees should get time off for.

Albania has a generous maternity leave plan that includes 365 days of paid leave. Female employees should take 35 days before their expected due date and a minimum of 42 days after. After 42 days, the employee can decide to complete the remaining leave or return to work. The country does not offer statutory paternity leave, but male and female employees with dependent children can take up to 12 days of paid leave to care for a child.

Albania Benefits Management

Once you’re ready to give out compensation and benefits to employees, you need to consider what supplemental benefits you

can add to your Albania benefit management plan. Employees often expect performance-based bonuses, and companies may choose to provide voluntary pension funds. Offering these benefits can make a big impression on potential employees and lead to greater retention rates for your company.

Restrictions for Benefits and Compensation

Companies choosing to expand to Albania by establishing a subsidiary must incorporate before giving out compensation and benefits. Unfortunately, it can take weeks or months to set up your subsidiary, pushing back your other tasks. That’s not the case with Albania compensation and benefits outsourcing with Globalization Partners. We’ll help you hire talented employees and

give out compliant compensation and benefits as the Employer of Record.

Albania Payroll Options for Companies

Companies looking to start operations have four different Albania payroll options:

Internal: Many larger subsidiaries with a strong commitment to Albania may choose to set up their Albania payroll out of their subsidiary. If you go the internal route, you’ll need a bigger budget and larger HR staff to run this type of payroll successfully.

Remote: If you already have one payroll for your parent company, you can choose to pay your subsidiary’s employees through the same payroll remotely. While doing so can provide greater consistency, your employees will have separate taxation rules and regulations.

Outsourcing with a local company: You can also choose to work with a local Albania payroll processing company that will outsource your payroll. Your company will still be the one responsible for all issues relating to compliance with this setup.

Termination/Severance in Albania

Generally, an employee is considered to be on probation for the first three months of work. During this time s/he may be terminated with five days notice.

Required notice after the probation period is as follows:

The employment contract or collective agreement may stipulate different notice periods, but not shorter than two weeks if the employee has worked for six months, and not shorter than one month if the employee has worked for more than six months.

Employees are generally eligible for a severance payment of at least 15 days if they have worked for three or more years.

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