4. Types of leave

There is no information about the types of leave for this country.
Learn more about 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

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.

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.

5. Employment termination

There is no information about employment information for this country.

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.

Probation period

The probation period in Albania is fixed at three months.

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.

6. Working hours

There is no information about the working hours for this country.

General working schedule

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.

7. Minimum wage

There is no information about the working hours for this country.

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.

8. Employee benefits

There is no information about the working hours for this country.

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.

9. Taxes

There is no information about the working hours for this country.

Corporate tax

In Albania, corporate tax is imposed at a fixed rate of 15%. Businesses with less than 8 million in revenue are free from corporation tax. A corporation is tax resident if it was established in Albania, has a permanent establishment in Albania, or if management and control are exercised in Albania.

Individual income tax

As of 2014, income tax is progressive, with three brackets.[1][2]

For a monthly income between 0 L and 30,000 L, the tax rate is 0 percent.

For a monthly income between 30,000 L and 150,000 L, the tax rate is 13 percent.

For a monthly income in excess of 150,000 L, the tax rate is 23 percent.

VAT, GST and sales tax

Previously, Albania had a 10% flat tax, which was introduced in 2008. The VAT is imposed at two distinct rates: 20% as the normal rate and 10% on medical goods.

Contributions to social security and health insurance are deducted from earnings from work, public service, and management. Contributions are made on a monthly basis, with a minimum of 22,000 and a maximum of 95,130. The employee contributes 9.5 percent, while the company contributes 15%. The cost of health insurance is 1.7 percent for both the individual and the business. The self-employed contribute 23% to social security and 7% to health insurance.

10. VISA and work permits

There is no information about the working hours for this country.

Your passport must be valid for at least three months beyond the duration of your stay. As a tourist, you are not required to obtain a visa to enter the Republic of Albania. You can stay in Albania for up to a year without applying for a residency permit. If you plan to stay in Albania for more than a year, you can apply for a residency permit once you arrive. Please visit the Embassy website for more information on residency permits in Albania.

Prospective residents or those who intend to stay in Albania for more than a year and work or study must apply for a residency permit at the office of the Regional Directorate of Border and Migration Police in the region where they intend to live.

11. Employer Of Record service terms

There is no information about the working hours for this country.

Employment contracts

Information about the employer and employee

Workplace details

General job description

Starting date of the job

Duration of contract (if it is fixed-term)

Duration of paid vacations

Termination conditions

Primary aspects of salary and day of receipt of the mentioned salary

Normal working hours (for a contractor or full-time employee)

Minimum assignment length

In Albania, the main laws and standards apply to both contractors and full-time workers. Unless otherwise specified, a full-time employee's contract in Albania is indefinite, according to employment contract legislation. If an employer appoints an employee for a certain amount of time, it must be stated.

Payment currency

In Albania, the euro is generally recognized. The Albanian Leke is the indigenous currency of Albania, however many Albanians and business owners carry both Albanian Leke and Euros in their wallets.

13.Opening a subsidiary in Albania

There is no information about the working hours for this country.

How to set up a subsidiary

Establishing a subsidiary in Albania is not something you should do lightly. To begin, you must choose the location of your real office space. Different districts and localities in Albania may have their own subsidiary legislation, which might complicate your growth. That is why we advocate doing research into various places around the nation to choose the optimal placement for your business.

Once you've chosen a location, you should evaluate the various entities that make sense for your business. You may pick the entity under which you want to incorporate, and this will have an effect on how you do business in the nation. Albania permits expansion via limited liability companies (LLCs), joint stock companies (JSCs), or representative offices, however many businesses opt to organize as an LLC.

The following are the processes to incorporate your Albania subsidiary as an LLC:

1. Checking the uniqueness of your name online or at a National Registration Center representative office

2. Creating and notarizing articles of association that comprise the company's internal rules

3. The Registration Center issues a Registration Certificate and a Unique Business Identification number.

4. Obtaining health insurance and social security benefits

5. Registration with the Municipality Bureau of Internal Revenue for special corporation taxes

6. Requesting the company's seal, which you will need for everyday tasks

Subsidiary laws

Albania's subsidiary laws can differ according on the kind of company formed. A limited liability company must have at least one director and one shareholder who may be of any country. They will not be needed to go to or reside in Albania as part of the procedure. Additionally, you'll need 1 EUR in paid-up capital.

Once the Albania subsidiary establishment procedure is complete, you must submit financial audits to the Albanian commercial registration. These financial statements must be audited if you meet two of the following criteria: yearly revenues of at least $230,000, total assets of at least $330,000, or more than 30 workers.

13. Why choose Rivermate as your Employer of Record / PEO in Albania

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.

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