Expand your organization into Kosovo, even if you don’t have a Kosovan entity
The disputed territory of Kosovo is one of the poorest areas in Europe, but its economy has actually been gradually strengthening over the last decade. Now, Kosovo is well-positioned to develop rapidly, and an increasing number of foreign businesses are looking to expand their operations to the territory and harness the potential.
However, if your organization is planning an expansion into Kosovo, you should be prepared to tackle the country’s complex, often inefficient business and employment regulations. If you are unfamiliar with the local customs and procedures, you may encounter delays, which could cause costs to grow out of control.
A popular way of bypassing the complex administrative procedures is to outsource the legwork to a global professional employer organization (PEO). At New Horizons, our comprehensive PEO, employer of record, and payroll services are designed specifically to help businesses of all kinds expand abroad faster and more efficiently, including into Kosovo.
With a dedicated in-house recruitment team, we can also handle your hiring and HR. We can use our Kosovan subsidiary as employer of record so you don’t even need an established entity in Kosovo to hire locally. Our services can save you thousands in expansion costs and kickstart your expansion into Kosovo.
Our Kosovo PEO simplifies your expansion
New Horizons enables your business to expand operations into Kosovo- without setting up a legal subsidiary.
Hiring in Kosovo: Employment law overview
Employment contracts in Kosovo
In Kosovo, contracts of employment can technically be either written or verbal. However, we recommend always writing up a formal contract for every employee that includes all necessary details such as the job title, expected working hours, salary/wage, benefits, and so on. Contracts should be written in Albanian and/or Serbian language and reference the local currency of the euro, which the territory uses despite not being an EU member state.
Working hours in Kosovo
The working hours in Kosovo reflect those of many other European countries, with a working week generally consisting of 40 hours of work across five eight-hour days.
Public holidays in Kosovo
A number of public holidays are recognized annually in Kosovo. Many employees receive the following days as leave from work:
- Christmas Day
- Europe Day
- Eid al Fitr
- Eid al Adha
- Independence Day
- Easter Monday
- New Year’s Day
- 2nd Day of New Year
- Constitution Day
- International Labour Day
Kosovo vacation leave
Employees in Kosovo are entitled to at least 20 days of paid vacation leave each year.
Kosovo sick leave
Employees in Kosovo can take up to 20 days of paid sick leave annually.
Parental leave in Kosovo
Female employees in Kosovo can take up to 12 months of maternity leave, with an allowance of 45 days to be taken before giving birth. The first nine months of leave is compensated (at 70% of normal pay for six months, then 50% of pay for three months) and the final three months is unpaid.
Terminations and severance in Kosovo
For definite-term contracts, employees in Kosovo are entitled to 30 days of notice prior to termination. For indefinite-term contracts, notice depends on the length of service. For employees of six months to two years, the notice period is 30 days. For employees with two to ten years of service, the notice period rises to 45 days, and for those with over ten years of service, it is 60 days.
Severance payments may be required in the case of mass dismissals where 10% or more of a company’s workforce (at least 20 people) are terminated. The mandatory severance depends on om each employee’s length of service and ranges from one month to seven months of salary.
Taxation in Kosovo
Income tax in Kosovo is progressive, with employees needing to pay a higher percentage of earnings at higher income levels. The rates range from 0% to 10%.
Corporate tax in Kosovo is 10% for most companies.
Health coverage in Kosovo
Employees in Kosovo will generally have access to state-funded healthcare, but many people also use private care to ensure high standards. Some employers, therefore, choose to offer private medical insurance as part of their benefits packages.
Kosovo compensations & benefits
Compensation laws in Kosovo
The mandatory minimum wage in Kosovo is €130 per month for employees under 35 and €170 per month for employees over 35.
Benefit management in Kosovo
Many employees in Kosovo expect benefits packages with their jobs, so you may want to set up a system when hiring in the country. However, establishing a benefits system in Kosovo can be a difficult process, particularly if you are unfamiliar with the country’s unique laws and administrative processes.
Alternatively, you could use a payroll outsourcing firm to handle your Kosovan payroll. At New Horizons, our Kosovo payroll experts can set up and manage your benefits system for you, freeing you to focus on your successful expansion.
New Horizons will help you expand your business into Kosovo faster
At New Horizons, we offer custom employer of record, PEO, and payroll outsourcing to help businesses begin trading and hiring in Kosovo more effectively. Our experienced team will ensure that you are ready to commence your Kosovo operation in as little as 48 hours, and could save you as much as 82% in expansion costs, even if you haven’t already established a Kosovo entity.
We will handle your expenses, payroll, and legal compliance in Kosovo, as well as all HR administration. And as the only global PEO with a dedicated recruitment team in-house, we can also source and hire your local employees, using our Kosovan subsidiary to act as employer of record so you don’t need to have a Kosovan entity.
Talk to our Kosovo payroll experts today to learn how our services can assist your expansion into Kosovo.