Employment Law Compliance in Albania
📄 Employment Law & Compliance in Albania
This consolidated report provides international employers key insights when hiring talent in Albania through PEO or EOR solutions.
📌 Employment Taxes & Contributions
Employer:
- Social Insurance: 15%
- Health Insurance: 1.7%
- Total: 16.7% (additional cost)
Employee:
- Social Insurance: 9.5%
- Health Insurance: 1.7%
- Total: 11.2% (withheld from salary)
📌 Personal Income Tax
- Income up to ALL 2,040,000/year: 13%
- Income above ALL 2,040,000/year: 23%
📌 Working Hours & Overtime
- Standard: 40 hrs/week (8 hrs/day, Mon–Fri)
- Maximum incl. overtime: 48 hrs/week
- Overtime: 125% of hourly rate
- Holidays/weekends: 150% rate
- Annual overtime cap: 200 hrs/year
📌 Salary Bonuses & Food Allowance
- 13th/14th month: Optional
- Food Allowance: Required if >300 employees
- Amount: ALL 300–500/day
📌 Paid Leave & Holidays
- Annual Leave: Minimum 20 working days
- Public Holidays: 15 per year (religious + national)
📌 Maternity & Paternity Leave
- Maternity: 365 days (80% first 150 days, then 50%)
- Paternity: 3 paid days at birth
📌 Sick Leave & Other Leave
- Sick Leave (Employer): Up to 14 days (80% pay)
- Sick Leave (Social Insurance): After 14 days
- Other Leave: Marriage (5 days), Bereavement (5), Childcare (12/year)
📌 Termination & Severance
- Notice periods:
- Up to 6 months: 2 weeks
- 6–12 months: 1 month
- 1–5 years: 2 months
- 5+ years: 3 months
- Probation: 3 months (5 days' notice)
- Severance: ½ month salary per year beyond 3 years
📌 Minimum Wage (2024)
- ALL 40,000/month (~€380)
📌 Employment Contracts & Registration
- Written contracts required (role, salary, terms)
- Registration: 24h before start
- Termination: Notify within 10 days
🌍 Why Use PEO/EOR in Albania?
- ✅ Up to 50% cost savings vs. EU/USA
- ✅ Compliance fully managed
- ✅ Rapid hiring and onboarding
- ✅ Reduced liability and admin burden
HireAlbania – Simplifying Global Expansion through Expert Employment Solutions in Albania
📩 Contact Us