Albania is a southern European country located in the western part of the Balkan Peninsula. It extends over an area of 28,703 km2. About half of the economically active population is employed in agriculture, which contributes about one-fifth of Albania’s GDP.  Greece, Germany, and Turkey are Albania’s biggest foreign investors, providing about three-fourths of external investment.

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Albania.

Capital :
Tirana
Currency :
Albanian Lek (ALL, L)
Languages spoken :
Albanian
Population :
2.84 million (2020 est.)
Minimum wage 2022 :
ALL 32,000 (monthly)
Cost of Living index :
$$ (99 of 139 nations)
Payroll Frequency :
Monthly
VAT - standard rate :
20%
GDP - real growth rate :
-4% (2020 est.)

Statutory Holidays

The holidays mentioned below are valid for the year 2022.

Date
Holiday Name
Extra Information
January 1
New Year's Day
January 2
New Year Holiday
Holiday in lieu
January 3
New Year Holiday
Holiday in lieu
January 4
New Year Holiday
Holiday in lieu
March 14
Summer Day
March 22
Nowruz Day
April 17
Catholic Easter Sunday
Movable
April 18
Catholic Easter Monday
Movable, Holiday in lieu
April 24
Orthodox Easter Sunday
Movable
April 25
Orthodox Easter Monday
Movable, Holiday in lieu
May 1
International Workers' Day
May 2
Eid al-Fitr
Movable
May 3
International Workers Day Holiday
Holiday in lieu
July 9
Eid al-Adha
Movable
July 11
Eid al-Adha Holiday
Holiday in lieu
September 5
Day of Sanctification of St. Teresa
November 28
Flag and Independence Day
November 29
Liberation Day
December 8
National Youth Day
December 25
Christmas Day
December 26
Christmas Holiday
Holiday in lieu

Contract Sharing Time


The approximate time for sharing the contract with an employee in Albania is 7 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

What You Need To Know


  • The employer must follow a specific disciplinary procedure for contract termination.
  • The salary is paid only through the banking system, and it must be paid in Albanian currency.
  • The employer who has terminated the contract without reasonable cause is obliged to give the employee an indemnity of up to one year’s salary.
  • The employer must provide the employee with all the necessary work equipment for teleworking and reimburse them for all the expenses arising from the performance of such work.

Labor Conditions


Working Hours

The working time cannot exceed eight hours per day and 40 hours per week. The daily break is at least 11 consecutive hours within the day or within two consecutive days in case of need. The weekly break is at least 36 hours, within which 24 hours are without interruption.

Overtime

Every hour worked over the eight-hour limit per day or 40-hour limit per week is considered an additional hour of work. The amount of overtime pay depends on what day the overtime takes place as follows:

Overtime is compensated with a 25% surcharge on working days, or 50% on rest days, or compensatory time off.

Probation Period

For fixed-term contracts, the parties should provide in writing for a probationary period not exceeding three months. For indefinite contracts, the first three months of work are considered a probationary period, unless the parties have entered into a contract for the performance of the same work.

Termination Notice Period

Termination notice periods in Albania depend on the contract stage and employment length as follows:

 

Contract StageEmployment LengthEmployer Notice Period
During probationUp to 3 months5 days
After ProbationUp to 6 months2 weeks
More than 6 months and up to 2 years1 month
More than 2 years and up to 5 years2 months
More than 5 years3 months

 

Leave / Time Off

Annual Leave

The duration of annual leave is at least four calendar weeks during the current working year. The salary paid for the annual leave is what the employee would have benefited from even if they did not take the leave.

Sick Leave

Employees are entitled to employer-paid sick leave of 14 days with at least 80% of their salary. From the 15th day, the social insurance scheme pays the sickness benefits for up to six months. The employee certifies their inability to work through a medical report issued by the doctor.

Parental Leave

The employee, who has more than one year of uninterrupted work with the same employer, is entitled to an unpaid leave of at least four months until the child reaches six years of age. 

Maternity Leave

Pregnant employees are entitled to a compulsory maternity leave of 35 days before childbirth and 63 days after childbirth. In case of multiple births, the pregnant employee is entitled to a compulsory leave of 60 days before childbirth and 63 days after childbirth. For the birth of one child, the maternity benefit period is up to 365 calendar days, including a minimum of 35 days before childbirth and 63 days after childbirth. The benefit is paid by social security.

Paternity Leave

In the case of childbirth, the spouse or cohabitant benefits from three days of paid leave from the employer.

Adoption Leave

The mother, who adopts a child up to one year of age and who has been insured for at least 12 months, is entitled to a postpartum leave from the day of adoption for a minimum of 28 days. The leave is paid by social security.

Other Types of Paid Leave

Marriage Leave

In the case of a marriage, the employee benefits from five days of paid leave from the employer.

Bereavement Leave

In case of the death of the employee’s spouse, cohabitant, ancestors, or direct descendants, they benefit from five days of paid leave from the employer

Legal Obligation Leave

The employee who is absent from work due to the fulfillment of the legal obligation is entitled to a paid leave of up to 14 working days by the employer. 

Unpaid Leave

Serious Family Illness Leave

In case of serious illness of family members, cohabitants, ancestors, or direct descendants certified by a medical report, the employee benefits from a maximum of 30 days of unpaid leave. 

Statutory Benefits

The Albanian social protection system consists of contribution-based social security benefits and tax-financed social assistance and services. The Social Insurance Institute (Instituti i Sigurimeve Shoqerore, ISSH) is responsible for the administration of old-age, disability, and survivors’ pensions, employment injury benefits, sickness benefits, and maternity benefits.

Employers contribute a total of 16.7% to social insurance, while employees contribute 11.2%. The detailed breakdown of employer contributions is as follows: 

BenefitsEmployer Contributions
Pension (Pension)12.8%
Sickness (Sëmundje) and Maternity (Barrëlindje)1%
Health insurance (Fondi i Sigurimit të Detyrueshëm të Kujdesit Shëndetësor, FSDKSH)1.7%
Accidents at work and occupational diseases (Aksident në punë e sëmundje professional)0.3%
Unemployment (Papunësinë)0.9%
Total16.7%

Health Insurance

Employers and employees each contribute 1.7% to health insurance.

The compulsory health insurance finances benefits such as:

  • Visits, examinations, and medical treatments in public primary health care centers and public hospitals;
  • Visits, examinations, and medical treatments in private primary care providers and private hospitals
  • Medicines, products, and medical treatments from contracted health care providers.

Other Types of Insurance

Accident Insurance

Employers contribute 0.3% to accident insurance.

Employment injury benefits are payable to insured workers who suffer work accidents or occupational diseases, including:

  • Cash benefits for temporary incapacity for work;
  • Disability pensions for permanent loss of work capacity;
  • Survivors’ pensions in case of death.
Unemployment Insurance

Only employers contribute 0.9% to unemployment insurance. Unemployment benefits are payable to unemployed workers who have contributed at least 12 months prior to unemployment.

Public Pension

The employer contributes 12.8% to the pension, while employees contribute 8.8%. The pension system in Albania is largely based on three main schemes – statutory, supplementary, and personal.

The retirement age is being gradually raised to 67 years old for both men and women by 2056; while the required insurance period for claiming an old-age pension is extended to 40 years by 2032. The current retirement age is 65 years of age (for men) and 61 years and 4 months (for women).

Other Statutory Benefits

Social Pension

The social pension is a benefit given to every Albanian citizen who has reached the age of 70 or permanent resident residing in Albania for at least the last five years, and does not meet the conditions for any type of pension from the compulsory social insurance scheme and has no income that benefits from any other source. The benefit is financed by the State.

Disclaimer

The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.

Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.

Explore our platform
on your own

Discover the key features of our platform for free, without talking to a salesperson.

Try WorkMotion Free