Guide to employment, payroll and benefits in

Albania

Rivermate offers complete payroll, benefits and compliance services for

Albania

01. Overview

Last updated: 

August 19, 2021

Currency
Albanian Lek
Capital
Tirana
Ease of doing business
67.7
Language
Albanian
Population
2877797
GDP growth
3.84%

02. Grow your team in

Albania

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Albania

, particularly if you don't have established local relationships. You can hire employees in

Albania

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Albania is a country in Southeastern Europe, officially known as the Republic of Albania. It shares land boundaries with Montenegro to the northwest, Kosovo to the northeast, North Macedonia to the east, and Greece to the south, as well as maritime borders with Greece, Montenegro, and Italy on the Mediterranean Sea's Adriatic and Ionian Seas. The capital and largest city is Tirana, which is followed by Durrs, Vlor, and Shkodr. Albania, with a land area of 28,748 km2, has a diverse range of climatic, geographical, hydrological, and morphological conditions. It has a diverse landscape, ranging from the snow-capped mountains of the Albanian Alps, as well as the Korab, Skanderbeg, Pindus, and Ceraunian Mountains, to the hot and sunny Adriatic and Ionian Sea coasts along the Mediterranean Sea. Many civilisations have lived in Albania throughout history, including the Illyrians, Thracians, Ancient Greeks, Romans, Byzantines, Venetians, and Ottomans. In the 12th century, Albanians founded the autonomous Principality of Arbr. Between the 13th and 14th centuries, the Kingdom of Albania and the Principality of Albania arose. Prior to the Ottoman conquest of Albania in the 15th century, Gjergj Kastrioti Skanderbeg's Albanian resistance to Ottoman expansion into Europe earned them acclaim throughout Europe. Cultural transformations between the 18th and 19th centuries, generally attributed to Albanians' spiritual and intellectual power, conclusively contributed to the Albanian Renaissance. In 1912, the new nation state of Albania proclaimed independence after defeating the Ottomans in the Balkan Wars. The Kingdom of Albania was invaded by Italy in the twentieth century, which created Greater Albania before becoming a protectorate of Nazi Germany. After World War II, Enver Hoxha founded the People's Socialist Republic of Albania, which was modeled after Hoxhaism. The 1991 Revolutions resulted in the demise of communism in Albania and the founding of the current Republic of Albania. Albania is a developing country with an upper-middle income economy dominated by the service sector, followed by manufacturing. It is a unitary parliamentary federal republic with a developing economy. Following the fall of communism in 1990, it underwent a transformation from authoritarian planning to a market-based economy. Albanian residents have access to universal health care and free primary and secondary education. Albania is a member of the United Nations, the World Bank, UNESCO, NATO, the World Trade Organization, the Council of Europe, the OSCE, and the Organization of Islamic Cooperation. It is an approved applicant for European Union membership. It, along with the Organization of the Black Sea Economic Cooperation and the Union for the Mediterranean, is a founding member of the Energy Community.

04. Public holidays

05. Types of leave

Paid time off

A year's worth of service entitles an employee to four weeks of paid vacation. Leave is measured on a prorated basis whether the person has been working for longer than a year.

Public holidays

There are fourteen public holidays in Albania.

Sick days

An individual will take sick leave for the duration of their sickness before their doctor says they are well enough to return to work. The contractor is required to pay 80 percent of the employee's wages for the first 14 days of sick leave. After the 15th day, Social Insurance pays the person 70% of their gross wage for the previous six months.

Maternity leave

Women are entitled to 12 months of maternity leave in a row. This requires a minimum of 35 days of leave prior to the child's birth and 63 days after the child's birth. Women who are pregnant with several children are entitled to 390 days of maternity leave.

During maternity leave, the person is paid 80 percent of the total monthly wage from the previous 12 months for the first 6 months and 50 percent for the next 6 months by Social Insurance.

Paternity leave

No statutory laws on paternity leave are mandated in Albania.

Parental leave

For a child under the age of three, an employee is entitled to 15 days of paid leave per year, and for a child above the age of three, an employee is entitled to 12 days. An employee can also take an extra 30 days of unpaid leave each year.

Other leave

Employees are entitled to 10 days of bereavement leave in the case of the death of a partner or a member of their immediate family.

06. Employment termination

Termination process

When fixed-term contracts come to an end, neither the employee nor the employer is required to go through any type of termination process.


If an employer intends to fire an employee, the employer is required to give the employee advance notice and to meet with the employee within 72 hours to discuss the cause for termination and to enable the employee to submit counterarguments. The employee may be entitled to compensation if the employer fails to fulfill within 72 hours.

Notice period

An employee will be given one month's notice throughout the first two years of work. Employees will be given two months' notice throughout their second to fifth years of work. Finally, an employee will be given three months' notice after five years of employment.

Severance pay

If the employee has worked for the company for more than three years, he or she is entitled to fifteen days of severance pay.

Probation period

The probation period in Albania is fixed at three months.

07. Working hours

General

Albania's standard work week is 40 hours spread over five days.

Overtime

Overtime is defined as work exceeding 40 hours per week and is compensated at a rate of 125 percent of the regular pay. Alternatively, the employer may compensate the employee with additional time off rather than additional compensation.


Weekends and public holidays are compensated at a rate of 125 percent of regular pay.


Overtime hours cannot exceed eight hours per week (for a total of forty-eight hours worked) or twenty-eight hours per year. However, in certain circumstances (e.g., force majeure), an employee may work more than 48 hours per week, but the average weekly hours worked cannot exceed 48 over a four-month period.

08. Minimum wage

General

Albania's minimum wage is currently 30,000 Albanian lek (ALL), or 290 US dollars per month. However, the country frequently increases its minimum wage, and employers should be aware of any changes that may affect their employees.

09. Employee benefits

General

Albania has mandatory universal healthcare that is financed by payroll taxes and the general budget. Private healthcare is also accessible, and some businesses provide optional pension plans.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Albania

to hire a team takes time, money, and effort. The labor law in

Albania

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Albania

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Albania

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Albania

via our Employer of Record / PEO solution.

Ready to get started? Our friendly staff is ready to assist you with all your questions, let's connect.