Country Payroll Guide Albania

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Key Facts

Capital
Tirana
Date format
dd/mm/yyyy
Currency
Albanian Lek (ALL)
VAT
the standard rate is 20%

Contributions

Employers

Social Security
Social Security - 15%
Health Insurance
Health Insurance - 1.7%
Total Employment Cost
Total Employment Cost - 16.7%

Employees

Social Security
Social Security - 9.5%
Health Insurance
Health Insurance - 1.7%
Total Employee Cost
Total Employee Cost - 11.2%

Minimum Wage

Minimum Wage
The minimum wage in Albania is 30000 ALL per month.

Payroll

Payroll Cycle
Bi-Weekly, Monthly
13th Salary

Not required by law.

Income Tax

Employee Income Tax (1)
0 - 30,000 ALL - 0%
Employee Income Tax (2)
30,001 - 150,000 ALL - 13%
Employee Income Tax (3)
Over 150,000 ALL - 23% + 15,600 ALL

Working Hours

General Working Hours

40 hours per week.

Overtime

Overtime must be paid at least 125% of the employee’s regular pay. Overtime should also not exceed 8 hours a day and 200 hours a week.

Leave

Paid Time Off

Once an employee has worked a full year, they are entitled to four weeks of annual leave.

Public Holidays

14 public holidays.

Sick Days

An employee is eligible for sick leave until their doctor confirms they are ready to return to work.

The first 14 days of sick leave will be paid at 80% of the employee’s average salary for the last six months, after 14 days this will decrease to 70%.

Maternity Leave

Mothers are entitled to one year of maternity leave, this should consist of at least 35 days before the due date and 63 days after the child is born.

The employee will receive 80% of their normal salary for the first six months of leave and 50% for the second six months.

Paternity Leave

There is no national paternity leave required by law.

Parental Leave

An employee is entitled to 15 days of paid leave a year for a child under the age of 3 and 12 days for a child over the age of 3.

An employee can also take 30 extra days a year (unpaid).

Other Leave

Bereavement Leave – 10 days (for the death of a spouse or immediate family member).

Termination

Termination Process

The employer must meet with the employee they are dismissing at least 72 hours beforehand, to explain the reasoning behind terminating the contract.

Notice Period
  • 1 months’ notice during the first 2 years of employment
  • 2 months’ notice for employees with 2 to 5 years of employment
  • 3 months’ notice for employees with more than 5 years of employment
Severance Pay

An employee is entitled to 15 days of severance pay if they have worked a minimum of three years with that employer.

Probation Period

3 months.

Visa

Employment Visa

To work in Albania, non residents must obtain a work permit.