Hire in Albania

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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A quick overview of Albania

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Cost of living index

$$ (99 of 139 nations)

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Currency

Albanian Lek (ALL, L)

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Payroll frequency

Monthly

Basic facts

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.

Capital

Tirana

Official language/s

Albanian

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Population

2.74 million (2023 est.)

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VAT - standard rate

20%

The holidays mentioned below are valid for the year 2025.

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 1New Year's Day
January 2New Year Holiday
March 14Summer Day
March 22Nevruz Day
March 30Eid al-FitrMovable
April 20Catholic/Orthodox Easter Movable
May 1International Workers' Day
June 6Eid al-AdhaMovable
September 5Day of Sanctification of St. Teresa
September 22Alphabet Day
November 28Flag and Independence Day
November 29Liberation Day
December 8National Youth Day
December 25Christmas 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 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 minimum monthly wage has been increased to ALL 34,000.
  • 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.

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%

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 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

 

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 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

 

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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%