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 its external investment.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Albania.
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Easily onboard your remote talent in Albania through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.
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 its external investment.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Albania.
The national holidays mentioned below are valid for the year 2026 and are critical for hiring in Albania planning:
The holidays mentioned below are valid for the year 2026.
When the official holiday day is on a weekly rest day (Saturday or Sunday), the holiday is postponed to the next working day (Monday or Tuesday).
| January 1 | New Year's Day | |
| January 2 | New Year Holiday | |
| March 16 | Summer Day | In lieu of March 14 |
| March 20 | Eid al-Fitr | Movable |
| March 22 | Nevruz Day | |
| April 5-6 | Catholic Easter | Movable |
| April 12 - 13 | Orthodox Easter | Movable |
| May 1 | International Workers' Day | |
| May 27 | Eid al-Adha | Movable |
| September 7 | Day of Sanctification of St. Teresa | In lieu of September 5 |
| September 23 | Alphabet Day | |
| November 30 | Flag and Independence Day | In Lieu of November 28 |
| December 1 | Liberation Day | In lieu of November 29 |
| December 8 | National Youth Day | |
| December 25 | Christmas Day |
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.
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 is as follows:
| Benefits | Employer Contributions | Employee Contributions |
| Pension (Pension) | 12.8% | 7.8% |
| Sickness (Sëmundje) and Maternity (Barrëlindje) | 1% | 1.7% |
| Health insurance (Fondi i Sigurimit të Detyrueshëm të Kujdesit Shëndetësor, FSDKSH) | 1.7% | 1.7% |
| Accidents at work and occupational diseases (Aksident në punë e sëmundje professional) | 0.3% | – |
| Unemployment (Papunësinë) | 0.9% | – |
| Total | 16.7% | 11.2% |
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.
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.
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 periods in Albania depend on the contract stage and employment length as follows:
| Contract Stage | Employment Length | Employer Notice Period |
| During probation | Up to 3 months | 5 days |
| After Probation | Up to 6 months | 2 weeks |
| More than 6 months and up to 2 years | 1 month | |
| More than 2 years and up to 5 years | 2 months | |
| More than 5 years | 3 months |
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.
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.
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 periods in Albania depend on the contract stage and employment length as follows:
| Contract Stage | Employment Length | Employer Notice Period |
| During probation | Up to 3 months | 5 days |
| After Probation | Up to 6 months | 2 weeks |
| More than 6 months and up to 2 years | 1 month | |
| More than 2 years and up to 5 years | 2 months | |
| More than 5 years | 3 months |
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 is as follows:
| Benefits | Employer Contributions | Employee Contributions |
| Pension (Pension) | 12.8% | 7.8% |
| Sickness (Sëmundje) and Maternity (Barrëlindje) | 1% | 1.7% |
| Health insurance (Fondi i Sigurimit të Detyrueshëm të Kujdesit Shëndetësor, FSDKSH) | 1.7% | 1.7% |
| Accidents at work and occupational diseases (Aksident në punë e sëmundje professional) | 0.3% | – |
| Unemployment (Papunësinë) | 0.9% | – |
| Total | 16.7% | 11.2% |
WorkMotion handles the full employment lifecycle in Albania through its partner network, so your company can hire compliantly without registering a local entity, navigating the Albanian Labour Code from scratch, or building relationships with local tax and social security authorities.
WorkMotion generates a written employment contract aligned with the Albanian Labour Code.
Albanian law requires all employment contracts to be in writing and drafted in Albanian. The contract must specify:
WorkMotion handles this automatically, so your new hire receives a legally sound contract without your legal team drafting it from scratch.
Before payroll can run, the employee must be registered with the relevant Albanian authorities, including the Social Insurance Institute (ISSH) and the Health Insurance Institute (ISKSH).
WorkMotion’s partner network manages this registration step, ensuring the employee is properly enrolled with both institutions from day one.
Failure to register correctly exposes the employer to penalties and late-payment interest under Albanian law.
WorkMotion configures payroll in Albanian Lek on a monthly cycle, the standard payroll frequency in Albania.
Employer contributions are calculated and applied: social security (Sigurime Shoqërore) at 15% of gross salary and health insurance (Sigurime Shëndetësore) at 1.7% of gross salary, bringing total employer contributions to approximately 16.7%.
These contributions are subject to a monthly ceiling. Earnings above approximately ALL 189,950 are not subject to further social contributions.
WorkMotion applies the correct rates and thresholds automatically.
WorkMotion enrolls employees in Albania’s statutory benefits framework, which includes:
WorkMotion tracks accruals, processes leave requests, and coordinates with social insurance where applicable.
Each month, WorkMotion:
You receive clear monthly statements, with no manual calculations and no direct dealings with Albanian tax offices.
Albanian labor law is actively evolving. The Labour Code was amended in 2024 (Law No. 91/2024), and Albania’s ongoing EU accession process means further regulatory alignment is expected.
WorkMotion monitors these changes and updates employment terms, contribution rates, and statutory entitlements accordingly, so your obligations stay current without your HR team tracking Albanian legislative updates.
Hiring a single employee or a small team in Albania through an EOR is fundamentally different from registering a local legal entity. Here is how the two paths compare:
| WorkMotion EOR | Albania Entity Setup | |
| Setup cost | Per-employee monthly fee | Estimates can range between €5,000–€15,000+ in legal, registration, and accounting fees |
| Time to first hire | Days from signed agreement | Typically 2–4 months for full entity registration and payroll setup |
| Ongoing legal exposure | WorkMotion assumes employer-of-record liability; your company retains operational control | Your company carries full direct liability for labor law, tax, and social security compliance |
| Ongoing admin burden | Payroll, filings, and compliance handled by WorkMotion | Requires local accountant, HR support, and ongoing regulatory monitoring |
| Exit flexibility | Scale down or offboard without entity wind-down procedures | Closing a local entity involves formal dissolution, regulatory filings, and additional cost |
EOR through WorkMotion fits companies that need to hire in Albania quickly, test the market before committing to a permanent structure, or maintain a lean international footprint.
Entity setup is worth evaluating if you are planning significant long-term headcount in Albania and want direct employment control under your own brand, in which case WorkMotion’s Direct Hiring solution may also be relevant.
Albania’s Labour Code is detailed, and it has changed recently. Foreign employers relying on outdated information or generic EOR processes frequently run into the same compliance gaps.
The Albanian Labour Code requires employment contracts to be written in Albanian. A contract issued only in English, or with an Albanian translation attached as a secondary document, does not satisfy the requirement.
WorkMotion generates contracts in Albanian as the primary language, with translated copies provided where needed for the client company’s records.
Many foreign employers still budget for four calendar weeks of annual leave, the pre-amendment standard.
Under Law No. 91/2024, effective August 2024, the entitlement increased to 22 working days per year. The amendment also removed the earlier requirement for employees to take at least one uninterrupted week of leave.
WorkMotion applies the updated entitlement automatically across all Albanian employment contracts.
All employment contracts in Albania must specify compensation in Albanian Lek (ALL), not euros or any other currency.
Foreign employers sometimes issue contracts with euro-denominated salaries, which creates compliance exposure.
WorkMotion handles currency denomination correctly from contract generation through to monthly payroll.
Terminating an employee in Albania is not a simple notice-and-exit process. The employer must:
Skipping this process, even unintentionally, can expose the employer to wrongful dismissal claims and compensation liability of up to 12 months’ salary.
WorkMotion manages termination procedures in line with Albanian Labour Code requirements.
Employees dismissed without just cause after three or more years of service are entitled to severance pay calculated at 15 days of wages per year of service, capped at 12 months’ total salary.
Foreign employers sometimes overlook this obligation when planning workforce changes.
WorkMotion tracks service tenure and calculates severance obligations accurately.
Under Albanian law, for every 25 employees, an employer must hire one person with a disability.
Employers who do not meet this requirement must pay a fund contribution to the National Employment Service instead.
This obligation is easy to miss for foreign companies scaling headcount in Albania without local HR expertise. WorkMotion flags these obligations as your Albanian headcount grows.
German, Dutch, and UK-based B2B SaaS and software companies use WorkMotion to hire developers, QA engineers, and product managers in Albania.
Albania has a growing IT sector with a young, multilingual workforce, and employment costs are significantly lower than in Western Europe.
These companies need compliant employment contracts and reliable payroll, not a six-month entity registration project, before they can make their first hire.
US companies building out European-facing teams (sales, customer success, or technical support) hire in Albania through WorkMotion as part of a broader European expansion.
Albania operates in the Central European time zone, making it a practical location for roles that need to overlap with European clients.
WorkMotion handles the full compliance layer so US-based HR teams do not need to develop in-country expertise.
E-commerce businesses and digital marketing agencies with distributed teams use WorkMotion to hire content, SEO, and operations specialists in Albania.
These companies are often remote-first, with 40–50% of their workforce hired through EOR across multiple countries.
Albania fits naturally into this model. WorkMotion consolidates payroll and compliance across all their hiring markets into a single platform.
You have found the right candidate in Albania.
The compliance requirements are real:
But they do not have to be your problem.
WorkMotion handles the full employment layer through its partner network in Albania, so your new hire is legally employed, properly paid, and correctly enrolled in statutory benefits from day one. There is no entity to register, no local payroll vendor to manage, and no compliance gap to close.
To estimate your total cost of employment in Albania before you commit, use the Employment Cost Calculator. When you are ready to move forward, Book a Demo and we will show you exactly how hiring in Albania works through WorkMotion.
WorkMotion provides EOR services in Albania through its partner network rather than a directly owned entity. This means your employee is legally employed through a locally established partner, with WorkMotion managing the full compliance layer (contracts, payroll, statutory registrations, and contributions) on your behalf. The arrangement delivers the same compliance outcomes as a direct entity model: your hire is properly registered with the Social Insurance Institute (ISSH) and Health Insurance Institute (ISKSH), paid in Albanian Lek on a monthly cycle, and covered by all statutory entitlements under the Albanian Labour Code.
Onboarding timelines in Albania depend on how quickly the employee completes their documentation and how promptly the required registrations with Albanian social and health insurance authorities can be processed. In practice, most hires can be onboarded within a few business days of a signed agreement, compared to the two to four months typically required to register a local entity and configure payroll independently. WorkMotion manages the registration steps with Albanian authorities as part of the standard onboarding process, so your HR team does not need to coordinate directly with local institutions.
Employers in Albania are required to contribute 15% of gross salary to social security (Sigurime Shoqërore) and 1.7% to health insurance (Sigurime Shëndetësore), bringing total mandatory employer contributions to approximately 16.7% of gross salary. These contributions are subject to a monthly earnings ceiling: gross salary above approximately ALL 189,950 is not subject to further social contributions. WorkMotion applies the correct rates and thresholds automatically in monthly payroll calculations, so your finance team receives accurate, predictable cost statements without manual reconciliation.
Termination in Albania follows a structured process under the Labour Code, and it is not a simple notice-and-exit procedure. The employer must provide written notification of a meeting at least 72 hours in advance, conduct a formal discussion with the employee about the reasons for dismissal, and follow different procedural requirements depending on whether the termination is for cause or for objective business reasons. Employees dismissed without just cause after three or more years of service are also entitled to severance pay calculated at 15 days of wages per year of service, capped at 12 months’ total salary. WorkMotion manages the full termination process in line with Albanian Labour Code requirements, reducing your exposure to wrongful dismissal claims.
Albania amended its Labour Code in 2024 through Law No. 91/2024, which took effect in August 2024. The most significant change for employers is the increase in minimum annual leave entitlement from the previous standard to 22 working days per year, a detail that many foreign employers still get wrong when budgeting for Albanian hires. Albania’s ongoing EU accession process also means further regulatory alignment is expected in the coming years. WorkMotion monitors legislative changes and updates employment terms, contribution rates, and statutory entitlements accordingly, so your contracts stay current without your HR team tracking Albanian legislative updates directly.
There is no minimum headcount requirement. WorkMotion’s Albania EOR service is available for a single hire. This makes it a practical option for companies testing the Albanian market with one or two key roles before deciding whether to invest in a permanent local entity. It is worth noting that Albanian law requires employers to hire one person with a disability for every 25 employees, with a fund contribution to the National Employment Service required if the quota is not met, an obligation WorkMotion flags as your Albanian headcount grows.
The first step is understanding your total cost of employment in Albania, including gross salary, employer social and health insurance contributions, and the WorkMotion service fee. You can estimate this before committing using the Employment Cost Calculator. When you are ready to move forward, book a demo and WorkMotion’s team will walk you through exactly how the Albania EOR process works, what your employee’s onboarding experience looks like, and what compliance obligations are handled on your behalf from day one.
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