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Albania PEO & Employer of Record

Expand your business into Albania and hire employees - in as little as 48 hours

Expand your business into Albania, with or without having an Albanian entity

Albania has developed steadily in the years and decades following the fall of communism in the late 20th Century. Now classed as an upper-middle-income country, Albania’s economy continues to expand and diversify, attracting significant foreign investment.

However, If you are planning an expansion into Albania, you may encounter unexpected delays. With the country’s complicated laws, unique language, and more potentially leading to a long expansion process that can take weeks or even months.

At New Horizons, our experienced expansion team helps businesses expand into Albania. Our tailored professional employer organization (PEO), employer of record, and payroll services can provide you with all the support you need to efficiently expand your business into Albania, whether or not you have already established an Albanian entity.

As the only global PEO with an in-house recruitment team, we can also take care of the sourcing, hiring, and onboarding of your Albanian workforce, along with any associated HR and legal compliance work. Our tailored services can save you thousands in associated expansion costs.

How New Horizons outsourcing can help you expand into Albania

New Horizons enables your business to expand operations into Albania – without setting up a legal subsidiary.

Rapid Market Entry

New Horizons will enable you to source, hire, and onboard professionals across Albania in as little as 48 hours.

Cost-Effective Expansion

Our PEO solution can help you benefit from cost savings of up to 82%, without the need to establish an Albanian entity.

Payroll Outsourcing

Simplified Albania salary & payroll processing, including social security payments, tax, and any other required contributions.

Employee Onboarding

Utilize the relevant provision for all types of Albanian labor contracts, whether a fixed-term or open-ended contract.

Onsite Legal & HR Team

Full support for Albania-specific contract renewals, terminations, annual leave management, HR, and strategic guidance.

Ensure Full Compliance

We ensure that employment contracts are fully compliant and adhere to Albanian labor laws and best practices.

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Hiring in Albania - Employment Law Overview

Albania employment contracts

Contracts of employment in Albania can be either verbal or written, but we recommend that you always produce written contracts when hiring employees in the country. As in any other country, these contracts should include all the relevant details of employment such has salary/wage, job title, benefits, and so on. They should also be written in Albanian and use the local currency of the Albanian lek.

Working hours in Albania

The standard working week in Albania is 40 hours spread over five days. The usual maximum is 50 hours. For overtime, employees should be compensated at 125% of normal pay.

National holidays in Albania

There are several nationally recognized public holidays in Albania. Many employees receive the following days as leave from work each year:

  • New Year’s Day
  • Independence Day
  • Summer Day
  • Nevruz Day
  • Liberation Day
  • National Youth Day
  • Christmas Day
  • Easter Sunday
  • Labor Day
  • End of Ramadan
  • Feast of the Sacrifice
  • Beatification of Mother Teresa Day

Vacation in Albania

Employees in Albania are generally entitled to a minimum of 20 days of paid vacation leave annually. This leave must be taken in blocks of at least five days.

Sick leave in Albania

Employees in Albania are entitled to 14 days of paid sick leave. During this time, the employer must cover at least 80% of normal pay. Absence through workplace injuries can be compensated via the country’s social security system.

Maternity and paternity leave in Albania

Female employees in Albania are entitled to a full year of maternity leave, with a minimum of 35 days before giving birth and a minimum of 42 days after the birth. They are compensated at 80% of normal pay for the maternity leave before giving birth and for five months (150 days) after. Beyond this, compensation is 50% of normal pay.

Fathers in Albania are not entitled to any paternity leave as standard.

Parents are also entitled to 12 days of leave to care for dependent children (15 days when the child is under three years old) and an additional 30 days of unpaid leave for childcare.

Employee severance and terminations in Albania

Employees in Albania with over one year of service with an employer are entitled to one month of notice prior to termination. For those with between two and five years of service, this rises to two months, and three months for those with more than five years of service.

Employees with more than three years of service with an employer are usually entitled to a severance payment equivalent to 15 days of normal pay.

Probation periods are generally limited to three months, and the mandatory minimum notice of termination during this time is five days.

Tax laws in Albania

Employers in Albania must contribute to social security and health insurance schemes for employees. These payments equate to 16.7% of salaries. Employees themselves must also contribute to social security at a rate of 11.2% of their salary.

Income tax in Albania is progressive, ranging from 0% to 23% depending on income level.

The corporate tax rate in Albania is 15% for most companies, but those in some industries, such as software development, may need to pay an additional rate.

Health coverage in Albania

Albania has comprehensive state-funded healthcare, so employers do not need to provide private medical insurance to employees. However, many people do use private healthcare so may expect it as an employment benefit.

Albania compensations & benefits

Compensation laws in Albania

The minimum wage for private-sector employees in Albania is 26,000 leks per month for full-time employees (in 2020).

Benefit management in Albania

Building a benefits system for your Albanian workforce can be difficult and complicated to navigate if you are not familiar with the country, its customs, and its employment laws. Establishing it independently can take several weeks and could lead to costly delays.

Outsourcing your benefit management process ensures that you fully understand and adhere to the rules, ensuring your compliance and speeding up the process significantly. At New Horizons, our Albania employment experts will help you to find and arrange your benefits, advise on your strategy, and ensure compliance with the law.

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Why choose New Horizons' services for your expansion into Albania?

New Horizons’ Albania employer of record, PEO, and payroll services provide everything organizations need to begin trading in Albania. Our team can ensure you are operational in as little as 48 hours, and could save up to 82% in expansion costs, even if you haven’t yet set up an entity in Albania.

We can handle all of your expenses, payroll, benefits, and legal compliance in Albania, as well as all related human resources administration. As the only global PEO with an in-house recruitment team, we can also find and hire your local staff, providing our Albanian subsidiary to act as employer of record for your hires so you don’t even need to establish an Albanian entity.

Get in touch with our Albania experts today to find out more about our outsourcing services for Albania expansion.

Discover how our Albania PEO 
can simplify your expansion