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SALARY PAYMENT IN Albanian Lek (ALL, L)
CONTRACT LANGUAGES Albanian / English
PAYROLL TAX 16.70%
PAYROLL CYCLE Monthly
TIME TO HIRE 24 hours
Hire and pay talents
with Horizons in
180+ countries
One of the principal reasons for engaging a PEO in Albania (also known as a ‘Albania Employer of Record’ or ‘Albania EOR’), is to ensure full compliance with Albania’s employment laws. Here we explain how a Albania PEO ensures:
01. Compliance with Albania employment contract requirements
02. Compliance with working hours, national holiday provisions, and Albania social security requirements.
PEO Platform Hire in Albania, and pay employees through our platform or app. | PEO Cost Our Albania PEO solution is the most affordable on the market. | Time-to-hire Fast onboarding in Albania, hire in as little as 24 hours. |
Contracts We draft labor contracts compliant with Albanian labor law. | Local Benefits We administer all mandatory benefits and contributions in Albania. | 180+ Countries It doesn’t stop with Albania — we are an international PEO |
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.
Probationary period | 3 months, unless otherwise stated in writing |
Termination notice period | 1 month minimum. Usually at the end of the contract |
Severance | 15 days after 3 years of service |
Probationary period | 3 months, unless otherwise stated in writing |
Termination notice period | 1st year of service: 1 month notice 2nd – 5th year: 2 months notice More than 5 years: 3 months notice |
Severance | 15 days’ salary after 3 years of service |
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.
There are several nationally recognized public holidays in Albania. Many employees receive the following days as leave from work each year:
Date | Holiday name |
---|---|
Saturday, January 1, 2022 | New Year’s day |
Thursday, January 6, 2022 | Epiphany |
Friday, April 15, 2022 | Good Friday |
Monday, August 15, 2022 | Assumption |
Wednesday, October 12, 2022 | National Day of Spain |
Tueday, November 1, 2022 | All Saints’ Day |
Tuesday, December 6, 2022 | Constitution Day |
Thursday, December 8, 2022 | Immaculate Conception |
There are also several holidays for regional or autonomous communities. Depending on where your employee is located, they may be entitled to additional days. This can be reviewed by our team and a detailed local holiday schedule for your employee will be shared as your hiring project begins.
There are several nationally recognized public holidays in Albania. Many employees receive the following days as leave from work each year:
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.
Probationary period | No probationary period. |
Termination | At completion of the project. |
Severance | Max. one months per year of employment. |
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.
(percentage of regular wages owed to the employee)
Probationary prediod | No probationary period. |
Termination | At completion of the project. |
Severance | Max. one months per year of employment. |
Probationary prediod | No probationary period. |
Termination | At completion of the project. |
Severance | Max. one months per year of employment. |
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 (180 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.
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.
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.
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.
The minimum wage for private-sector employees in Albania is 26,000 leks per month for full-time employees (in 2020).
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 Horizons, our Albania employment experts will help you to find and arrange your benefits, advise on your strategy, and ensure compliance with the law.
With Horizons, you get quick service, transparent pricing, and expert support.
An Albania PEO and an Albania EOR are two types of companies which specialize in providing human resources services to businesses in Albania.
The main difference between an Albania PEO and an Albania EOR is in the scope of their services.
Albania PEOs provide a full range of HR services, including payroll, benefits administration, and employee recruiting—all under one roof as a co-employer. Engaging an Albania PEO is essentially outsourcing your HR duties in Albania.
Albania EORs actually take over as the legal employer of your employees based abroad. Albania EORs become responsible for labor compliance for your employees in Albania.
At Horizons, we offer both PEO and EOR services in Albania. Get in touch now and let us know what service you are seeking.
A PEO in Albania can feasibly hire both local and foreign nationals to work in Albania.
However, the ability of Horizons to sponsor your foreign national employee in Albania may be limited due to visa quotas practiced in many countries.
Contact us with your requirements and our Global Mobility team with review the case and get back to you within 2 business days.
In most cases, Horizons’ Albania PEO can hire & onboard your employee within 24 hours. The actual start date of the employee will depend on their notice period obligation to their previous employer as well as any relevant hiring rules in Albania.
It is possible to get a work visa in Albania. Horizons’ Global Mobility team is a dedicated team of work visa experts. They assess the details of each case to determine feasibility and costs before Horizons applies for the work visa on behalf of your employee. If the Global Mobility team determines that your case is feasible, the process is smooth and transparent. Visa spots in Albania are limited, however—get started today to secure your employees’ visa spot.