Hire employees in Kosovo
With Nomad Global Hire EoR (Employer of Record) services, you can easily hire employees in Kosovo, without having to set up your own entity. No risk and fully compliant with HR support included
What to know about Kosovo
Kosovo’s Service industry is growing
Employer Tax
Estimated at 5%
Currency
EUR, Euros
Available Employee Benefits
Medical insurance, Meal Vouchers
Employee Tax
Incremental up to 10%
Payroll Frequency
Monthly over 12 payments
Main Universities
Capital
Pristina
Population
Circa 1.8 Millions
Available Contracts
Fixed Term Contract, Indefinite/Permanent
Payroll, Benefits & Tax in Kosovo
- Average Salary in Kosovo is 600 USD per Month
- Employer Tax in Kosovo is usually 5%
- This includes Pension and Social Security
- Employee Tax in Kosovo is incremental up to102%:
- There is a Tax-free amount set at 960 Euros
- Income Tax is at a flat rate of 4% for the income between 961 and 3,000 Euros
- Income Tax then steps to 8% for the income between 3,001 and 5,400 Euros
- Income tax is 10% over 5,401 Euros
- Overtime in Kosovo has to be paid by law and is limited to 8 hours per week and can be compensated up to 150% of the standard hourly rate of the employee
- Payroll Frequency in Kosovo is Monthly over 12 months
- Maternity Leave in Kosovo is up to 270 paid days. The Mother has to take 45 days before the birth date. During the first 6 months, leave is paid at 70% by the employer, then in the other 3 months, it is paid at 50% by the Social Security Fund. There is an option to take an extra 90 days unpaid if agreed by the employer.
- Paternity Leave is 10 days and can be taken just after birth. The salary during those 10 days will also paid at 100% by the employer.
- Parental Leave is up to 4 months in Kosovo.
- Sick Leave is covered for up to 20 days per year. The employer will pay 100% of the salary during those 20 day.
- Statutory Leave is 20 days per year up.
- Bank holidays: there are 13 national days in 2023 in Kosovo.
- Termination can only be done for a valid cause in Kosovo, see below
- Notice period is depending on the length of service of the employee in the business
The Kosovar Labour Code is setting the framework for employment in Kosovo. 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 Kosovo
- Probation period are not mandatory under the Labor Law in Kosovo
- Probation period in Kosovo however can be of a maximum of 180 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 Kosovo 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, reduction of work or end of the activity or unsatisfactory performance.
- It is always advised to reach a Mutual Agreement to validate a Termination in Kosovo.
- The minimum notice period in Kosovo is 30 days (for service of less than 2 years), then 45 days for service of 2 to 10 years, and then 60 days after that. For Fixed Term Contracts (FTC), the notice is 30 days.
- Severance payments in Kosovo are not mandatory.
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 Kosovo is estimated at 5%
- Social Security
- Pension
- Others
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