Hire employees in Albania
With Nomad Global Hire PEO / EoR (Employer of Record) services, you can easily hire employees in Albania, without having to set up your own entity. No risk and fully compliant with HR support included
What to know about Albania
Albania has a growing startup industry
Employer Tax
Estimated at 16.7%
Currency
ALL, Albanian Lek
Available Employee Benefits
Medical insurance, Meal Vouchers
Employee Tax
Incremental up to 23%
Payroll Frequency
Monthly over 12 payments
Main Universities
University of Tirana, Polytechnic University of Tirana, Agricultural University of Tirana
Capital
Tirana
Population
Circa 2.8 Millions
Available Contracts
Fixed Term Contract, Indefinite/Permanent
Albania is a country developing its innovation and investments in startups. Crunchbase identifies 320 startups int he country with 4% of those in the Non-Profit industry. NOMAD can manage the local employment for your new employees through its local Employer of Record services, including employment contracts, Tax, Payroll, Compliance and HR advisory.
Payroll, Benefits & Tax in Albania
- Average salary in Albania is 660 USD per Month
- Employer Tax in Albania is usually 16.7%
- This includes Social Security (15%) and
- Health Insurance Contributions at 1.7%.
- Employee Tax in Albania is incremental up to 23%:
- There is a Tax-free amount set at up to 30,000 ALL
- Income Tax is at a flat rate of 13% for the income between 30,000 and 150,000 ALL of annual income
- Income Tax then steps to 23% for the income in excess of 150,000 ALL.
- Overtime in Albania has to be paid by law and is limited to 150 hours annually and can be compensated up to 200% of the standard hourly rate of the employee
- Payroll Frequency in Albania is Monthly over 12 months
- Maternity Leave in Albania is up to 365 paid days. The Mother has to take a minimum of 35 days before the birth date and a minimum of 63 days after the birth of the child. During this time, leave is paid at 80% during the first 150 days, then at 50% for the rest, by the Social Security Fund.
- Paternity Leave is actually part of Parental Leave in Albania, and is 3 days after the birth of the child, paid at 100% by the employer. Partners however can take Parental Leave up to 330 days if the mother has not taken her right to maternity leave.
- Sick Leave is not limited in days, and the employer will cover at 100% the salary during the first 14 days. After this the salary is paid at 70% to 80% by the Social security fund.
- Statutory Leave is 20 days minimum per year.
- Public National holidays: there are 17 national days in 2023 in Albania.
- Termination can only be done for a valid cause in Poland, see below
- Notice period is depending on the length of service of the employee in the business
The Albanian Labor Code is setting the framework for employment in Albania. This covers all individual and collective working relationships, Compensation and Benefits, Workers rights as well as Leave (Sick, Parental), employment Termination and Discrimination.
Onboarding and Termination in Albania
- Probation period are not mandatory under Albanian Labour Law
- Probation period in Poland however can be of a maximum of 3 months or 90 days, and therefor cannot be extended
- You can hire through Fixed Term Contracts, Indefinite / Permanent contract or BtoB contracts
- Employment Contracts are drafted in Albanian but can also be in English (but then has to be both at the same time)
- Termination is Albania is generally a complicated process and requires particular care. In order to be compliant, Termination can occur as such:
- By mutual agreement
- By resignation of the employee
- By expiration of contract
- By the employer on grounds of disciplinary dismissal, failure to perform in probation period, or Objective grounds.
- It is always advised to reach a Mutual Agreement to validate a Termination in Albania
- The minimum notice period in Albania is 2 weeks (for service of less than 6 months), then 1 month for service of 6 months to 2 years, and then 2 months for length of service up to 5 years, then 3 months after that.
- Severance payments in Albania are mandatory and increase depending on the length of employment
- Please note that if the employer terminates the contract without reasonable cause then it has to provide compensation of up to 1 year of salary, so be very careful in documenting all steps to avoid this at the employee exit.
Fixed Management Fee
We charge a fixed monthly fee depending on the level of the salary of the hired employee
- Local Contract Management
- Payroll Management
- Tax and Compliance
- HR Support
Employee Nomad set up fee
Everything to get you started on Nomad and ensure piece of mind for you and your new hire
- Sign up to the NOMAD Services
- Benefits Setup (if available)
- Tax authority liaisons
- An additional Deposit of 1 full month salary cost will be required
Estimated Employer tax costs
Employer Tax in Albania is estimated around 16.7% (may vary depending on circumstances)
- Pension fund insurance
- Health insurance
- Unemployment insurance
- WFH allowance
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