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Albanian Lek (ALL)
Estimated at 16.7% of employee’s salary
Albainian
2.8 million
Monthly
To start growing your team in Albania, you must establish a local entity-including an account with a local bank, a local office and an address registered as a subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months. Emerald can hire and payroll your workers quickly and compliantly with their ‘ready to go’ entity. Make growing your team simple with Emerald as a global partner.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Hiring employees in Albania offers several advantages, including a young and educated workforce, competitive labour costs, and growing proficiency in multiple languages, particularly English and Italian. The country’s strategic location in Europe also provides ease of access to both Western and Eastern markets. However, potential drawbacks include bureaucratic hurdles, a relatively small domestic market, and the need for improvements in infrastructure and regulatory environments. Additionally, while the talent pool is growing, there may still be gaps in highly specialized skills depending on the industry.
Albania is an excellent location for hiring remote workers due to its young, educated workforce with high proficiency in English and other European languages. The country’s competitive labour costs, improved digital infrastructure, reliable internet connectivity, and favourable time zone for European markets further enhance its appeal. Additionally, cultural compatibility with Western Europe facilitates smooth integration into international teams.
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| Social Insurance | 15% of the employee's gross salary |
| Health Insurance | 1.7% of the employee's gross salary |
Social Security Contributions: Employers and employees must contribute to the social security system, which covers health insurance, pensions, and unemployment benefits.
Generally the probation period in Albania lasts 3 months, in which the employer or the employee can terminate, with a notice period of at least 5 days.
Emerald Technology can onboard employees in Albania within 48 hours.
Yes, restrictive covenants exist in Albania. Albanian labour law allows for clauses in employment contracts that restrict a former employee’s ability to compete with their previous employer, solicit clients, or use confidential information for a certain period after leaving the company. However, the enforceability of these covenants depends on their reasonableness in terms of duration, geographic scope, and the interests they aim to protect.
Female employees are entitled to 365 days of maternity leave, with at least 35 days before the expected due date and at least 63 days after childbirth, with compensation provided through social security.
In Albania, paternity leave is not as extensively covered as maternity leave. However, fathers are entitled to at least three days of paid leave following the birth of a child. This leave is intended to support the father during the immediate period after childbirth. Some companies may offer additional paternity leave as part of their employment policies, but this is not mandated by law.
Employees are entitled to sick leave, with compensation typically provided by social security, after a certain period.
As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:
When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:
| Termination: | In Albania, termination of employment is governed by the Labour Code. Employers can terminate contracts based on valid reasons such as employee misconduct, inadequate performance, or economic difficulties. |
| Notice periods: | Albanian employees can terminate their employment with a notice period, ranging between 30 and 60 days dependent on the duration of the employment. However, only 5 days’ notice is required to terminate the employment during the probation period. |
If an employee is made redundant, they are entitled to a payment based on years of continuous service.
| Years of service | Entitlement |
| Up to 2 years of service | Employees are entitled to at least half a month’s salary. |
| More than 2 years of service | Employees are entitled to at least one month’s salary. |
Statutory time off: Employees are entitled to a minimum of 20 days of paid annual leave after one year of service.
The minimum wage is 34,000 to 40,000 Albanian Lek (ALL).
Working hours: 8 hours per day and 40 hours per week maximum.
Overtime: For overtime on a weekday, the employee should receive 125% of their regular salary. On rest days, employees should receive 150%.
In Albania the payroll frequency is monthly. Employees must be paid by the final day of each month.
There is no legal requirement for employers to provide bonuses or a 14th-month payment.
The new law introduces a new progressive taxation of employment income by setting annual thresholds and tax rates as follows:
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