Employment Law

Employment Contracts in Kosovo

In Kosovo, employment contracts can technically be written or oral. However, we recommend always writing a formal contract for each employee that includes all necessary details such as position, expected working hours, salary/wages, benefits, etc. The contract should be written in Albanian and/or Serbian and quote the local currency, the euro, which is used in the region despite not being a member of the EU.

Fixed Term

Indefinite

Working Hours in Kosovo

Working hours in Kosovo are the same as those in many other European countries, with a typical working week of 40 hours and five 8-hour days.

Holiday Policy

Kosovo Vacation

Employees in Kosovo are entitled to at least 20 days of paid leave per year.

Kosovo Sick Leave

Employees in Kosovo are entitled to up to 20 days of paid sick leave per year.

Parental Leave in Kosovo

Female employees in Kosovo are entitled to maternity leave for up to 12 months and receive benefits for 45 days before giving birth. The first nine months of leave are compensated (six months at 70% of normal salary, then three months at 50% of normal salary), and the last three months are unpaid.

Termination and Demobilization of Kosovo

For fixed-term contracts, Kosovar employees are entitled to receive 30 days' notice before termination. For open-ended contracts, notice depends on the length of service. For employees between six months and two years, the notice period is 30 days. For employees with 2 to 10 years of service, the notice period increases to 45 days, and for employees with 10 years or more of service, the notice period is 60 days.

If a mass layoff occurs, in which 10% or more of a company's employees (at least 20 people) are laid off, severance may be required. Mandatory severance pay depends on each employee's length of service and ranges from one to seven months' salary.

Taxes in Kosovo

Kosovo's income tax is progressive, with employees at higher income levels paying a higher proportion of their income. Rates range from 0% to 10%.

The corporate tax rate for most companies in Kosovo is 10%.

Medical Insurance in Kosovo

Employees in Kosovo generally have access to state-funded healthcare, but many also use private care to ensure high standards. Therefore, some employers choose to offer private health insurance as part of their benefits package.

Salary and Benefits

Kosovo’s Reparations Law

The mandatory minimum wage in Kosovo is €130 per month for employees under 35 years of age and €170 per month for employees over 35 years of age.

Welfare Administration in Kosovo

Many employees in Kosovo expect benefits at work, so you may want to set up a system when recruiting in the country. However, establishing a welfare system in Kosovo can be a difficult process, especially if you are unfamiliar with the country's unique legal and administrative processes.

Alternatively, you can use a payroll outsourcing company to handle your Kosovo payroll. At Horizon, our Kosovo payroll experts can set up and manage your benefits system for you, allowing you to focus on successful expansion.