Employer of Record in Albania

Basic information

Capital:Tirana

Time Zone:GMT+2

Language:Albania

Currency Code:ALL

Human Resources at a Glance 

Contract Terms

Contracts must be in Albanian and can be in more than one language. An officially translated and notarized copy is required if the original contract is not in Albanian. They must be in writing and signed by both parties.
A contract must include:
– Identity of the parties
– Place of work
– Job description
– Date of commencement of work
– Duration of contract
– Duration of paid leave
– The notice period for the termination of the contract
– Salary and the date of its payment
– Normal weekly working time
– Probation period

Guidelines Regarding Probation Period/Trial Period

Probation periods are not mandatory. There is no minimum probation period. The maximum probation period is 90 days (3 months).

Regulations and Rules Regarding Working Hours

Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.

Overtime is paid according to the following rates

Overtime payment is mandatory. Hours outside of standard work hours are considered overtime. Employees can work a maximum of 48 hours of overtime per week. Employees can work a maximum of 200 hours overtime per year.

For additional hours, employees are compensated with leave or salary at 125% of the regular salary. Overtime performed during the weekend or on public holidays is compensated at 150% of the regular salary.

Minimum Wage Requirements

The individual income tax ranges from 0% to 23%. Income tax is calculated according to progressive rates.

Gross Annual Income (in ALL)	Tax Rate (%)
0 – 30,000	0
30,000 – 150,000	13
Above 150,000	23

Payroll Cost for Employers

The employer cost is generally estimated at 16.7% of the employee salary. The maximum salary for the calculation of the social security contributions will be ALL 176,417.

• Social security – 15.0%
• Health Insurance Contribution – 1.7%

Termination

Grounds

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.
Terminations in Albania can be complex. There is no at-will termination in Albania for employers outside the probation period and termination must be done for just cause.
Compliant terminations include:

• Voluntarily by the employee
• By mutual agreement
• Unilaterally by the employer based on:
  • probation period
  • objective grounds
  • disciplinary dismissal

Notice Period

The minimum notice period is 2 weeks and will be increased according to the length of the employment.

• 6 months of employment – 2 weeks notice
• Between 6 months to 2 years of employment – 1 month notice
• Between 2 to 5 years of employment – 2 months notice
• Longer than 5 years of employment – 3 months notice

Severance compensation

In Albania, all employees receive seniority remuneration if the contract has been terminated by the employer and the employment relationship has lasted a minimum of 3 years. Severance pay for seniority is a minimum of 15 days salary for each year of work. It is calculated on the basis of the salary that exists at the end of the employment relationship.
The employer who has terminated the contract without reasonable cause is obliged to give the employee compensation of up to 1 year of salary, which is in addition to the salary that the employee will receive during the notice period.

Payment & leave Compensation & Holidays

SalaryPayment

Monthly

Payslip Payroll

No explicit provision

Annual Leave

Both full-time and part-time employees are entitled to 20 days of paid time off (PTO) a year. PTO accrues monthly at 1.67 days per month. Employees are eligible for annual leave from the start of employment.

Sick Leave

There is no maximum paid sick leave in Albania. This leave is paid at different rates and by different payers depending upon length:

Period	Pay	Payer	Condition
0 – 14 days	80% of salary	Employer	All
Over 14 days	70% of salary	Health Insurance Institution	If employee has less than 10 years of insurance contributions
Over 14 days	80% of salary	Health Insurance Institution	If employee has over 10 years of insurance contributions

Maternity & Parental Leave

Pregnant employees, who have contributed to social security for 12 months, are entitled to 365 calendar days (1 year) of paid leave. A minimum of 35 days must be taken before the child’s birth. A minimum of 63 days must be taken after the child’s birth.

The employee will receive 80% of the daily average salary for the prenatal period and for 150 days after birth. For the remaining part of the leave, the employee will receive 50% of the daily average salary of the last calendar year. The Social Security Institution will be responsible for this pay.

The employee cannot extend leave.

The father or cohabitant has the right to 3 days of leave after the birth of the child. These 3 days are paid by the employer.

Employees, who contributed to social security for the past 12 months and whose partner has not exercised the right to maternity leave, are entitled to 330 days of paid paternity leave. The employee will receive salary after the 63rd day of the birth of the child (the first 63 days after the birth the mother is not allowed to work and the leave is considered as granted to the mother). The salary received will be 80% of the daily average salary up to the 150th calendar day after birth.

The employee will receive 50% of the daily average salary for the following period. The Social Security Institution will be responsible for this pay.

Employees cannot extend leave.

Tax and Social Security Information

Personal Income Tax

The individual income tax ranges from 0% to 23%. Income tax is calculated according to progressive rates.

Gross Annual Income (in ALL)	Tax Rate (%)
0 – 30,000	0
30,000 – 150,000	13
Above 150,000	23

Social security

• Health Insurance
• Social Security
• Private Healthcare – Unisure (optional)
• Private Healthcare – Allianz (optional)

Public Holidays 2024

Holidays	Date
New Year’s Holiday	1.1-1.2
Summer Day	3.14-3.15
Nevruz Day	3.22
Easter Sunday	3.31-4.1
Eid al-Fitr	4.10
Labour Day	5.1
Easter Sunday	5.5-5.6
Feast of Sacrifice	6.17
Mother Teresa Beatification Day	9.5
Flag and Independence Day	11.28-11.29
National Youth Day	12.8-12.9
Christmas Day	12.25