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Employment Guide to Hiring in Albania | Salary, Laws & Taxes

A definitive guide to hiring in Albania. Find information related to employee benefits like salaries, labor laws, taxes, insurance, guidelines & more.<br>

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Employment Guide to Hiring in Albania | Salary, Laws & Taxes

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  1. Solutions Why Global Expansion Technology Tools Resources Speak To An Expert Back to Countrypedia Definitive Guide to Hiring in Albania Find everything you need to confidently hire in Albania - labor law, tax law, compliance, payroll, benefits and more. Capital Tirana Population 2.812 MM Monetary Unit Albanian lek Download Guide Hiring In Albania Hiring In Albania Hiring employees compliantly in Albania means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Albania so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can: Labor Laws in Albania Albania Salary and Wages Income Tax in Albania Social Security in Albania (a) Establish your own new legal entity, banking, accounting and payroll service in Albania; or Immigration Albania Value Added Tax (VAT) in Albania (b) use an Employer of Record like Global Expansion who can handle all of the details for you. Termination Mandatory Benefits in Albania Need assistance hiring in Albania Contact us about our International EOR Service Payments And Invoicing Accrued Benefits in Albania Payroll Accruals in Albania Labor Laws in Albania Why use Global Expansion to hire in Albania Employee Probation Period in Albania Unless otherwise agreed in writing, the first 3 (three) months of the employment will be deemed to represent a probationary period, regardless of whether the contract is for a fixed or indefinite term. Download Guide Annual Leave in Albania Annual vacations are governed by the Albanian Labor Code. The Labor Code provides for minimum paid annual leave of no less than four calendar weeks in one year (pro-rata for those who have worked less than one year). Holidays in Albania New Year’s Day 1st January 16th March Dita e Verës 23rd March Nowruz 13th April Easter Monday 20th April Orthodox Easter Monday 1st May Labor Day   Eid al-Fitr   Eid al-Adha 19th October Mother Teresa Beati?cation Day Hi and welcome to Global 28th November Flag Day Expansion, your partner in global employment solutions. 30th November Liberation Day This website stores cookies on your computer. These cookies are used to improve your website experience and provide more personalized services to you, both on this website and through other media. To find out more about the cookies we use, see our Privacy Policy. Can I help you find what you 8th December National Youth Day need? We won't track your information when you visit our site. But in order to comply with your preferences, we'll have to use just one tiny cookie so that you're not asked to make this choice again. 25th December Christmas Day   Accept Decline

  2. Get in touch today Maternity Leave in Albania Employees are entitled to 365 days of paid maternity leave. 35 days should be taken before the expected due date and a minimum of 63 days must be taken after.  After 63 days the employee can remain on leave or return to work. In case the pregnant woman decides to start work after the period of 63 days after child birth, until the child reaches the age of one, she may choose between the two options:  a paid leave of two hours during the normal work duration; or  reduced work duration, for two hours, with the same salary as if she had worked full time. Paternity Leave in Albania Labor law provides 03 days of paid holiday to the father on birth of a child Sick Leave in Albania In the event of illness, the employer pays the employee 80% salary for a period of 14 (fourteen) days, a period which is not covered by Social Insurance. Working Hours in Albania The Albanian work week is 40 hours, with a standard workday of 8 hours. Duration of work is reduced for jobs that pose difficulties or that are harmful to health, as determined by the Council of Ministers.  For employees under 18, the daily duration of work is not more than 06 hours a day.  Overtime in Albania Overtime and extra working hours are also regulated by the Labor Code (Article 91), which provides that the employer shall compensate the employee for any overtime with 25 percent of normal payment if time-off in lieu is not given; or, if agreed, to compensate with time-off in lieu plus 25 percent of the hours of the normal working day, unless otherwise provided for in the collective contract. Extra work performed at weekends or on public holidays will give rise to higher extra payments of 50 percent of the normal payment, unless otherwise defined by the collective contract. Under no circumstances shall the maximum of overtime hours exceed 200 hours per year. The Employer cannot ask the Employee to perform overtime work if the Employee has performed 48 working hours during a week. Notice Period in Albania The notice period for the termination of the employment contract is defined in the individual employment contract. In the event that the parties have not defined the notice term in the employment contract, reference shall be made to the Labor Code. During the probationary period either party may terminate relations with five days' notice. The Labor Code provides for mandatory minimum notice periods to be applied in the case of termination of an indefinite (open) term contract by either the employer or the employee, as follows: during the first six months: two weeks; between six months and one year: one month; between one and five years of employment: two months; for more than five years of employment: three months. Severance in Albania Employees are generally eligible for a severance payment of at least 15 days if they have worked for three or more years. Albania Average Salary and Wages This website stores cookies on your computer. These cookies are used to improve your website experience and provide more personalized services to you, both on this website and through other media. To find out more about the cookies we use, see our Privacy Policy. We won't track your information when you visit our site. But in order to comply with your preferences, we'll have to use just one tiny cookie so that you're not asked to make this choice again. Accept Decline 13th / 14th Month Pay

  3. No There is no statutory requirement to pay the 13th or 14th month. Employers may however decide to add a 13th month payment if as part of the contract. Recently the government has approved an end-of year bonus for medical staff and police. Income Tax in Albania Individual taxpayers, both residents and non-residents, are subject to personal income tax (PIT). Albanian law applies the principle of worldwide taxation.  Resident individuals are taxed on all sources of income in and outside the territory of Albania, while non-resident individuals are taxed on income generated only in the territory of Albania. The following tax rates apply to income generated from employment: Salary income in ALL/month  Taxable income in ALL/month  Tax rate in percentage/month  From Until From Until 0% 0 40,000 0 40,000 0 30,000 0% 40,001 50,000 50% * 13% of the amount over ALL 30,000  30,001 50,000 0 30,000 0% 50,001 and more 13% of the amount over ALL 30,000  30,001 200,000   22,100 ALL + 23% of the amount over 200,000 ALL  200,001 And more Social Security in Albania Employers and employees contribute to a social security fund a percentage of the calculated monthly salary. The total contribution is 27.9%, of which 16.7% is borne by the employer, and 11.2% is borne by the employee. The contribution consists of a social security contribution of 24.5% (out of which 15% is borne by the employer and 9.5% is borne by the employee) and a health security contribution of 3.4% (out of which 1.7% is borne by the employer and 1.7% is borne by the employee). The monthly minimum and maximum salaries for social contributions are ALL 34,000 and ALL 149,953 respectively. The self-employed, the self-employed in a partnership, and the self-employed that hire third parties (excluding self-employed in agriculture) are liable to pay for themselves a mandatory SHC made up of social insurance contribution of no less than 23% of the monthly minimum salary of ALL 34,000 and health insurance contribution of 3.4% on no less than the double minimum salary, i.e. ALL 68,000. Social Security Contributions Health Security Contribution Contribution Employer 15% 1.7% Employee 9.5% 1.7% Start building your Global team Immigration Requirement in Albania Foreigners must apply for either a work permit or a work registration certificate. Citizens of the EU and Schengen area are exempt from the obligation to apply for a work permit or a work registration certificate. In addition, citizens of North Macedonia and Montenegro of Albanian ethnicity are exempt from the obligation to apply for a work permit or a work registration certificate. Work certi?cate The work registration certificate is issued for a period of 60 days to 90 days within one year for the following categories: - Consultants and audit service providers This website stores cookies on your computer. These cookies are used to improve your website experience and provide more personalized services to you, both on this website and through other media. To find out more about the cookies we use, see our Privacy Policy. - Artists and technical staff in cultural activities We won't track your information when you visit our site. But in order to comply with your preferences, we'll have to use just one tiny cookie so that you're not asked to make this choice again. - Technical staff provided by foreign companies for technical services Accept Decline - Lecturers

  4. - Personnel of international transport in Albania and certain other persons To obtain a work certificate, the following documents must be submitted: - Application form - Copy of the passport - Individual employment contract or secondment contract between the foreign entity, the local entity and the individual employee - If the above documents are filed by proxy, the relevant power of attorney - Five passport-size pictures - Receipt for fee payment Work permit The work permit can vary depending on the type of economic activity that the foreigners will perform in Albania. Type A/P work permits are issued to employees who have legally entered Albania, fall in the list eligible for this type of permit and have regular employment contracts. Type A/P work permits are issued for the following terms: - One-year term for the first application - Two-year term, renewable two consecutive times - Permanent term, after the expiration of the second two- year term for the work permit To obtain a Type A/P work permit, the following documents must be submitted: - Application form - Passport (expiration date at least three months after the visa expiration date) - Copy of passport information regarding generalities and other important information - Individual employment contract or secondment contract between the foreign entity, the local entity and the individual employee - Registration certificate (court decision or company extract from National Business Center) of the employer - If the above documents are filed by proxy, the relevant power of attorney - University degree certificate - Five passport-size pictures - Receipt for fee payment Residence Permit Foreign citizens who plan to stay in Albania for more than 90 days within a 180-day period and who have entered Albania with a Type D visa or without a visa can apply for a residence permit. The duration of a residence permit may be three months, six months, one year, two years or five years, or the permit may be permanent. Residence permits with the first three periods of duration can be renewed up to five consecutive times. The two-year residence permit may be renewed only one time. Foreigners may apply for a permanent residence permit if they have had a legal residence in Albania for five consecutive years and have a permanent activity. To obtain a residence permit, the following documentation must be submitted: - Application form - Passport (valid for at least three months after the expiration date of the visa) - Copy of passport information regarding generalities and other important information - Criminal Records Clearance of the individual extracted in the last six months - Rent or purchase contract for an apartment or house in Albania - Personal/Family Certificate translated in Albanian, released in the last six months - Three passport-size pictures - Declaration from the host or employer about the purpose of stay - Photocopy of the work permit or the professional license - Health insurance certificate for Albania - Medical report (for citizens of and coming from countries affected by epidemics) - Fee payment receipt This website stores cookies on your computer. These cookies are used to improve your website experience and provide more personalized services to you, both on this website and through other media. To find out more about the cookies we use, see our Privacy Policy. Type of Visa/Permit Documentation Validity Eligibility We won't track your information when you visit our site. But in order to comply with your preferences, we'll have to use just one tiny cookie so that you're not asked to make this choice again. Accept Decline Work Certificate Application form 60 days to 90 days Foreigners must apply for

  5. within one year either a work permit or a work registration certificate. Copy of the passport Individual employment contract or secondment contract between the foreign entity, the local entity and the individual employee The following are eligible: - Consultants and audit service providers Artists and technical staff in cultural activities If the above documents are filed by proxy, the relevant power of attorney Technical staff provided by foreign companies for technical services Five passport- size pictures Receipt for fee payment Lecturers Personnel of international transport in Albania and certain other persons A/P Work Permit Passport (expiration date at least three months after the visa expiration date) One-year term (for first application); Foreigners must apply for either a work permit or a work registration certificate. Two-year term (renewable two consecutive times); Copy of passport information regarding generalities and other important information Type A/P work permits are issued to employees who have legally entered Albania, fall in the list eligible for this type of permit and have regular employment contracts. Permanent term Individual employment contract or secondment contract between the foreign entity, the local entity and the individual employee Registration certificate (court decision or company extract from National Business Center) of the employer If the above documents are filed by proxy, the relevant power of attorney University degree certificate Five passport- size pictures Receipt for fee payment Residence Permit 3 month to indefinite Application form Foreign citizens who plan to stay in Albania for more than 90 days within a 180-day period and who have entered Albania with a Type D visa or without a visa can apply for a residence permit. Passport (valid for at least three months after the expiration date of the visa) Copy of passport information regarding generalities and other important information Foreigners may apply for a permanent residence permit if they have had a legal residence in Albania for five consecutive years and have a permanent activity. Criminal Records Clearance of the individual extracted in the last six months Rent or purchase contract for an apartment or house in Albania Personal/Family Certificate translated in Albanian, released in the last six months This website stores cookies on your computer. These cookies are used to improve your website experience and provide more personalized services to you, both on this website and through other media. To find out more about the cookies we use, see our Privacy Policy. We won't track your information when you visit our site. But in order to comply with your preferences, we'll have to use just one tiny cookie so that you're not asked to make this choice again. Three passport- size pictures Accept Decline Declaration from the host

  6. or employer about the purpose of stay Photocopy of the work permit or the professional license Health insurance certificate for Albania Medical report (for citizens of and coming from countries affected by epidemics) Fee payment receipt Get in touch today Value Added Tax (VAT) in Albania The standard VAT rate is 20%, and the standard VAT period is the calendar month. Taxable transactions include goods and services supplied domestically as well as goods imported into Albania by a taxable person. A reduced 10% rate applies to the supply of agricultural inputs, including fertilizers, pesticides, seeds, and seedlings A reduce rate of 6% applies to the supply of accommodation services VAT Standard Rate 20% Reduced Rate 10% Reduced Rate 6% Hire anywhere, without the risk Termination of Employment Albania A fixed-term employment contract is terminated upon the expiry of its term without the need for any prior notice. An open-term employment contract is terminated when one party decides to do so and the prior notice period has been observed. The Labor Code provides that an employment contract can be terminated with or without cause and although in normal circumstances a notice period must be provided, there are circumstances where the law justifies immediate termination for reasonable cause. The notice period for the termination of the employment contract is defined in the individual employment contract. In the event that the parties have not defined the notice term in the employment contract, reference shall be made to the Labor Code. During the probationary period either party may terminate relations with five days' notice. The Labor Code provides for mandatory minimum notice periods to be applied in the case of termination of an indefinite (open) term contract by either the employer or the employee, as follows: - during the first six months: two weeks; - between six months and one year: one month; - between one and five years of employment: two months; - for more than five years of employment: three months. Employees are generally eligible for a severance payment of at least 15 days if they have worked for three or more years. Need assistance hiring in Albania? Contact us about our International EOR Service Mandatory Benefits in Albania These are mandatory benefits as postulated by law This website stores cookies on your computer. These cookies are used to improve your website experience and provide more personalized services to you, both on this website and through other media. To find out more about the cookies we use, see our Privacy Policy. These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, and severance pay. We won't track your information when you visit our site. But in order to comply with your preferences, we'll have to use just one tiny cookie so that you're not asked to make this choice again. Statutory benefits also include social security benefits Accept Decline

  7. Mandatory Bene?ts Overview Probationary Period Annual Leave Public Holidays Maternity Leave Sick Leave Overtime Pay Severance Pay Social Security Benefits Get in touch today Payments And Invoicing The tax year in Albania is the calendar year. Employers must withhold personal income tax from wages and compensation paid, and they must pay the withholding tax in albania to the tax administration by the 20th day of the following month. Employers must maintain records of payments in accordance with instructions issued by the Ministry of Finance. Individuals earning income of ALL 2 million or more must file a personal income tax return for the preceding year by 30 April. Income taxed at source must also be declared, but no personal income tax is calculated on such income. Hire anywhere, without the risk Accrued Benefits in Albania 0% Christmas Bonus% 0% Christmas Bonus Over Severance per Year % Employees are generally eligible for a severance payment of at least 15 days if they have worked for three or more years (4.11% of annual salary) 4.11% of annual salary Vacations % Employees are enitled to 20 days of annual leave per year 5.49% Notice % Notice period is as follows: during the first six months: two weeks (3.83%) between six months and one year: one month (8.33%) 0.25% to 16.66% between one and five years of employment: two months (16.66%) for more than five years of employment: three months (0.25%) 0% Christmas Bonus Over Vacations Plus% A part may be added to cover compensation in kind - the criteria is determined by the Council of Ministers. - Total percentage of Salary (yearly) 17.94% The total employment accruals as a percentage of salary per anum are equal to 17.94% Payroll Accruals in Albania Albania Accruals Additional Information Vacation 8.77% This website stores cookies on your computer. These cookies are used to improve your website experience and provide more personalized services to you, both on this website and through other media. To find out more about the cookies we use, see our Privacy Policy. Social Insurance Institute 15.000% We won't track your information when you visit our site. But in order to comply with your preferences, we'll have to use just one tiny cookie so that you're not asked to make this choice again. Health insurance 5.48% Maximum contribution for social insurance 132,312 lek Accept Decline

  8. Description 7.30% Employers are liable to pay social security contributions for their employees at the rate of 16.7%. The employer contribution is made up of 15% social insurance contribution and 1.7% health insurance contribution. The monthly minimum and maximum salaries for social contributions are ALL 30,000 and ALL 132,312, respectively long term care insurance Payroll Accruals Additional information   Employment Accruals     The Labor Code provides for minimum paid annual leave of no less than four calendar weeks in one year This equals 8.21% of annual salary (30/365 days) Annual Leave Employees are entitled to 365 days of paid maternity leave.35 days should be taken before the expected due date and a minimum of 42 days must be taken after. Women are paid 80% of their average daily wage for leave prior to the birth and up to 150 days after the birth. For the remaining leave, pay is given at 50% of her average wage. This equals 80% of average daily wage of the 35 days prior to birth. Moreover, it equals 50% of the average daily wage of the 150 days after birth. Maternity Leave In the event of illness, the employer pays the employee 80% salary for a period of 14 (fourteen) days This equals 80% of 3.835% of the annual salary (14/365 days)) Sick Leave Overtime is paid at 25% more than the hourly wage on normal working days. Overtime is paid at 50% more than the hourly wage on weekends or public holidays. 200 hours per year is the maximum overtime hours allowed. This equals 25% of hourly wage on normal days and 50% of hourly wage on weekends. Overtime Pay Employees are generally eligible for a severance payment of at least 15 days if they have worked for three or more years. This equals 4.109% of annual salary (15/365 days) Severance Pay Employers must make social security contributions (15% of annual salary) and health security contributions (1.7% of annual salary) Social Security Contribution This equals 16.7% of annual salary. Why use Global Expansion to hire in Albania Establishing a branch office or subsidiary in Albania can be time- consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Albanian labor laws are complex. The company also has a responsibility to comply with specific employment practices dictated by Albanian law to maintain its good standing as an equal opportunity employer. Global Expansion makes it easy for you to expand into Albania. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees. We enable you to stay in control of everything. Our Albanian Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.   Ready to hire anywhere in the world? Grow your team the right way with Global Expansion. We won't track your information when you visit our site. But in order to comply with your preferences, we'll have to use just one tiny cookie so that you're not asked to make this choice again. This website stores cookies on your computer. These cookies are used to improve your website experience and provide more personalized services to you, both on this website and through other media. To find out more about the cookies we use, see our Privacy Policy. Request a Proposal Accept Decline

  9. Why Global Expansion Tools Contact Solutions logo-footer United States Employer of Record How we’re different CountryPedia Follow 7,124 United Kingdom Employment Compliance About GX Global Hiring Guides Portugal Global Immigration Technology Resources Group 735 Group 536 coalfire-logo France Global Taxes BBB A+ How we’re different Articles Philippines Global Payroll About GX Blog Singapore Employee Benefits Thought Leadership Contact Us Global HR Become a Partner Global PEO FAQ © 2022 Global Expansion    |   Privacy Policy  |   Cookie Policy   |   Code of Conduct Policy   |   Responsibility Policy   |   Anti-Bribery and Corruption Policy This website stores cookies on your computer. These cookies are used to improve your website experience and provide more personalized services to you, both on this website and through other media. To find out more about the cookies we use, see our Privacy Policy. We won't track your information when you visit our site. But in order to comply with your preferences, we'll have to use just one tiny cookie so that you're not asked to make this choice again. Accept Decline

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