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Overview
Albanian Lek (ALL)
CURRENCY
Tirane
CAPITAL
monthly
PAYROLL FRECUENCY
23
PUBLIC HOLIDAYS
0.00% to 16.70%
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Albania
Employer
Company Payroll Contributions
0% - 15%
Social Security
0% - 1.70%
Health Insurance
0% - 16.7%
Total Employment Cost
Employee
Worker Payroll Contribution
0%- 9.50%
Social Security
0%- 1.70%
Health Insurance
0% - 11.2%
Total Employee Cost
Employee Income Tax in Albania
For monthly income from 0 to 40,000 ALL
- 0%: 0 to 40,000 ALL
For monthly income between 40,000.01 ALL and 50,000.00 ALL
- 0%: 0 – 30,000 ALL
- 6.5%: 30,000 – 50,000 ALL
For monthly income greater than 50,000.00 ALL
- 0%: 0 – 30,000 ALL
- 13%: 30,000 – 200,000 ALL
- 23%: Income above 200,000 ALL
Payroll Contributions in Albania
Payroll Cycle
An Employer of Record in Albania will allow you to comply with the monthly payroll cycle, with payments on the last day of each month. However, employees who are paid by the hour, day, or week, are paid every 2 weeks.
13th Salary
In Albania, there is no such payment.
Employee Benefit in Albania
Visa and work permit in Albania
Citizens of European Union countries and other parts of the world need a visa to enter Albania. In
addition, they need, as in other countries, a residence permit to live in the country. Contractor Management Services can process these visas and permits for foreigners who want to work in the country.
In this case, foreigners, according to their citizenship and the expected job, may receive some of the following permits:
- Work registration certificate. For activities that do not last more than 60 or 90 days.
- Employment statements.
- Work permit. In this case, those who plan to work and remain in the country for more than 90 in 180 days.
The work permit must be requested by the person at the Directory of Migration of the National Employment Service. Thus, after applying, the person must wait approximately 10 days. In addition, there are 4 main categories for work permits in the country:
- Type A. Permit for economic activities for employers and employees.
- Type B. For independent economic activities.
- Type C. Permission for special ovations.
- Type D. In this case, it is a permanent work permit for foreigners who meet the criteria.
In addition to this, the authorities can grant residence permits and permanent stay through the provision of a residence permit. Moreover, to obtain it, you must go to the Regional Directorate of Borders and Migration. Thus, the owner of said service will be able to enter, stay, and leave the country.
VAT in Albania
In Albania, the standard VAT rate is 20.00%.
Working Hours in Albania
General
The working hours established by Albanian law consist of 8 daily and 40 weekly for adult employees. However, employees under the age of 18 may only work a maximum of 6 hours per day.
Overtime
The Employer of Record in Albania allows you to also pay overtime, which is the one that exceeds 40 per week. Thus, the payment consists of 25% more than the regular salary of the employee. However, if the employee works overtime on weekends or holidays, he must receive 50% more than his/her regular salary. In addition, the employer can substitute this pay with days off from work instead of the mentioned pay. In contrast, although contracts and collective agreements regulate these hours, the Labor Code establishes that they cannot be more than 200 hours per year.
Likewise, said law establishes that an employee cannot work overtime if they have already completed 48 hours per week. Therefore, the employer cannot ask you to work more overtime, except in exceptional circumstances. However, some restrictions limit such circumstances to only 4 months and the average hours cannot exceed 48. In addition, with the international PEO services, you will be able to know other restrictions that apply to overtime. For example, night workers, the type of work, who will do the overtime, and more.
Working Week
Monday to Friday.
Employee Termination in Albania
Termination Process
An international PEO can not only perform employee onboarding but also contract termination. In this case, if an employer wants to fire an employee, it must give the latter prior notice. At the same time, the employer must meet within 3 days of the notice to give the reason for the termination. In addition, the employer is obligated to allow the employee to present a counterargument against said reason. However, if the employer does not arrange this mandatory meeting after notification, the worker may receive compensation.
Likewise, it happens if the employer wants to terminate the contract of the employee for any reason. On the other hand, if it is an employee wishes to terminate the employment relationship, they must justify it and comply with the notice period. Likewise, during the trial period, both the employer and the employee may terminate the employment with a 5-day notice.
Notice Period
Through the Employer of Record in Albania, you will also be able to find out and apply notice periods as follows:
- 2 weeks of notice for employees with less than 6 months of employment.
- 1 month of notice for employees with between 6 months and 2 years of employment.
- 2 months of notice for employees with between 2 and 5 years of employment.
- 3 months of notice for employees with more than 5 years of employment.
Severance Pay
Severance pay is 15 days for employees who have worked for at least 3 years in the same company.
Probation Period
In the country, this period is generally 3 months, then you can hire and onboard workers in Albania.
Employee Leaves in Albania
Paid Time Offs
The Albanian labor code establishes regulations related to paid holidays for Albanian workers. Thus, it establishes that an employee with at least 1 year of full service is entitled to receive 4 weeks of vacation. In this case, you must take vacations during the working year or in the first 3 months of the following year. On the other hand, employees who do not complete at least 1 year of service will receive their leave days prorated. In addition, all requests must be given to the employee at least 30 days before the leave start date.
Public Holidays
There are 23 national holidays throughout the year.
Vacation Holidays
There are 20 vacation holidays throughout the year.
Sick Days
The Employer of record in Albania can manage this leave that lasts the entire time of the illness of the worker. Therefore, for the employee to return to work, a doctor must confirm that they can do so. In addition, the employer must pay for the first 14 days of leave 80% of the salary of the employee. Then, from the 15th day of the leave, social security pays the worker 70% of his average salary for the last 6 months.
Paternity Leave
The father is entitled to 3 days of paid leave.
Paternal Leave
With global employment outsourcing, you can manage this type of leave, which consists of 12 paid days to care for a child. In addition, employees who have a child under the age of 3 may receive an additional 3 days of leave. Likewise, they may request an additional leave of 30 unpaid days per year to care for a child.
Other Leave
- Bereavement leave. Workers may receive a 2-day leave for the death of a direct family member.
- Marriage permit. The employee is entitled to receive 5 days of leave for his marriage. In the same way, for the marriage of 1 child, the employee can receive 2 days of leave.
Maternity Leave in Albania
Employees who have worked for at least 1 consecutive year are entitled to receive a paid leave of up to 1 year. In this case, you must receive a minimum of 35 paid days before the delivery and 63 days after that. Additionally, after 63 days, the employee can choose to return to work or continue the leave. On the other hand, women who are expecting more than 1 child are entitled to receive 390 days of leave.
In addition, the payment during the first 6 months consists of 80% of the average salary during the year before they leave. However, in the following 6 months, the payment decreases to 50% according to article 104 of the Labor Code.
There are 365 leave throughout the year.