Albanian lek (ALL)
Onboard, pay and manage employees in Albania with Deel.
Usually, to hire in Albania, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Deel lets you hire employees in Albania quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.
All the necessary benefits for Albania
built right in
Deel allows you to provide localized benefits for employees in Albania within minutes. All in one manageable online dashboard.
- Health Insurance
- Private Healthcare - Unisure (optional)
- Private Healthcare - Allianz (optional)
Our quickstart guide to hiring in Albania
Navigate the tabs below to learn everything you need to know about hiring an employee in Albania
Minimum Wage Requirements
ALL 40,000 (Monthly)
Individual 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|
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%
Overtime Pay & Maximum Hours
Standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.
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.
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.
There is no maximum paid sick leave in Albania. This leave is paid at different rates and by different payers depending upon length:
|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|
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
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 for Employees
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.
Paid Time Off
Albania celebrates around 13 national holidays. National public holidays include:
- New Year’s Day
- Summer Day
- Catholic Easter
- Orthodox Easter
- May Day
- Eid al-Fitr
- Mother Teresa Day
- Eid al-Adha
- Independence Day
- Liberation Day
- National Youth Day
- Christmas Day
Employment Contract Details
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
Hiring in Albania, hassle-free
With Deel, your business can easily hire employees in Albania with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Albania and 150+ countries.
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*of employee salary