Employment Law

Employment contracts in Albania can be oral or written, but we recommend that you always present a written contract when hiring employees in the country. As in any other country, these contracts should include all relevant employment details such as salary/wage, title, benefits, etc. They should also be written in Albanian and use the local currency, the Albanian lek.

Fixed Term

Indefinite

Working Hours in Albania

The standard working week in Albania is five days and 40 hours. Typically up to 50 hours. For overtime work, employees shall be compensated at 125% of their regular wages .

Holiday Policy

Albania Vacations

Employees in Albania are generally entitled to at least 20 days of paid leave per year. The leave must be taken for at least five consecutive days.

Albania Sick Leave

Employees in Albania are entitled to 14 days of paid sick leave. During this period, employers must pay at least 80% of regular wages. Absence from work due to work-related injuries can be compensated through the national social security system.

Sick Leave Less Than 6 Months:

(percentage of regular wages owed to employee)

Sick Leave for More Than 6 Months:

Maternity and Paternity Leave in Albania

Female employees in Albania are entitled to a full year of maternity leave, of which at least 35 days before and 42 days after childbirth. They are compensated at 80% of their normal wages during maternity leave before and for five months (180 days) after childbirth. Otherwise, compensation is 50% of normal salary.

As a standard, Albanian fathers are not entitled to any paternity leave.

Parents are also entitled to 12 days of childcare leave (15 days for children under three years old), and an additional 30 days of unpaid childcare leave.

Employee Severance Pay and Termination of Contract in Albania

In Albania, employees who have served their employer for more than one year are entitled to receive one month's notice before terminating their contract. This period will increase to two months for those with between two and five years of service, and to three months for those with more than five years of service.

Employees with more than three years of service are generally entitled to severance pay equal to 15 days of regular pay.

The probationary period is generally limited to three months, during which the mandatory minimum notice period for termination is five days.

Albanian Tax Laws

Employers in Albania are required to contribute to social security and health insurance schemes for their employees. These payments are equivalent to 16.7% of wages. The employees themselves must also pay 11.2% of their wages to social security.

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

The corporate tax rate for most companies in Albania is 15%, but companies in certain industries (such as software development) may need to pay additional rates.

Health Insurance in Albania

Albania has comprehensive state-funded healthcare, so employers are not required to provide private health insurance to their employees. However, many people do use private healthcare and so may expect this to be considered an employment benefit.

Salary and Benefits

Compensation Law in Albania

The minimum wage for a full-time employee in the private sector in Albania is LE 26,000 per month (2020).

Welfare Administration in Albania

Setting up a benefits system for the Albanian workforce can be difficult and complex if you are not familiar with the country, its customs and employment laws. Setting it up independently could take weeks and could lead to costly delays.

Outsourcing your benefits administration processes ensures you fully understand and follow the rules, ensuring your compliance and significantly speeding up the process. At Horizon, our Albania employment experts will help you find and arrange your benefits, advise you on your strategy, and ensure compliance with the law.