Albania

Albania PEO & Employer of Record

WeHG suggests an International PEO and global Employer of Record service in Albania to companies that are willing to enter the Albanian market or hire local/expat employees in this country.

Traditional approach requires establishing a subsidiary in Albania.  On the other hand, our solution allows you to start the operations in Albania within days hence save time and money.  WeHG would hire candidates on your behalf while you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf.

Albania fast facts

Population, million: 3
Land area: 28,748 km²
Capital: Tirana
Local currency: Lek (ALL)

GDP per capita:$ 14,866
GDP in currency:$ 42.594 billion

Albania is a state in the western part of the Balkan Peninsula. Albania is a unitary state, a parliamentary republic. The country is subdivided into 12 regions. Albania, along with the partially recognized Republic of Kosovo and Bosnia and Herzegovina, is one of the countries in Europe with a predominantly Muslim population. Albania has been a NATO member since 2009. Additionally, Albania is an official candidate for EU membership (since 2014).

Hiring, Negotiating and Doing Business in Albania

Necessity of written employment contract

A labor contract can be signed in writing or agreed upon orally (in this case an employer should provide a candidate with a written sample within 30 days from the start of work). 

Different forms of engagement: employment, contracting, work with private entrepreneur

According to the Albanian Labor Code, there are several possible forms of employment: 

  • part-time (hourly base type of employment; half/complete working shift)
  • distance working (possibility of home-based employment)
  • acquiring a specific profession (employment, concluded between educator and a student to acquire a specific profession)

Moreover, there is an additional type of employment that can be concluded only with a physical person(s) registered for commercial purposes (a service agreement).

Albania Employment Contract

Types of employment agreements

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Albania working hours

Due to the Albanian Labor Code, the total amount of working hours per week should not exceed 40 hours. A typical working shift has a duration of 8 working hours.

Overtime

The Albanian Labor Code provides workers with an overtime payment that compensates 25% of a normal payment. Working on holidays and at the weekends is compensated by 50% of the normal payment unless otherwise defined by the collective contract. 

Vacation leave in Albania

The minimum paid annual leave in Albania, according to the Labor Code, is 4 weeks in one year. As well as for sick leave, annual leave is calculated considering working time. Employees are able to choose when they would like to take a vacation, but they have to notify employers within 30 days before vacation. 

Albania Maternity Leave

Female workers are able to take 365 days of paid maternity leave: 35 days before the birth of a child and 42 days after. They are entitled to receive compensation monthly, calculated considering a working payment which is 50% of the average daily salary. Regarding multiple births, maternity leave can be extended to 390 days: 60 days before the birth of a child and 42 days after. Additionally, the employee is entitled to receive compensation in the case of adopting a child.

Albanian Severance Laws

The definition of the notice period is claimed in the employment contract (definite term contract). In the case of indefinite employment, both parties should reference the Albanian Labor Code. Due to the Law, the notice period can last a minimum of 5 days of the probationary period and can be changed by both parties in the written contract. 

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Albania Tax

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Health Insurance Benefits in Albania

Health insurance benefit is payable from the 15th day and up to 6 months of medical certification. Compensation is equal to 70% of the average daily payment if a worker has less than 10 years of contribution and 80% if more than 10 years of contributions.

Additional Benefits in Albania

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General market practice benefits/additional allowances

Performance-based bonuses are common in Albania.

Albania Holidays

There’re 12 Public Holidays in Albania:

  • New Year’s Day
  • Summer Day
  • Nevruz Day
  • Easter Sunday
  • Labour Day/May Day
  • End of Ramadan
  • Feast of the Sacrifice
  • Mother Teresa Beautification Day
  • Independence Day
  • Liberation Day
  • National Youth Day
  • Christmas Day

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.

 

FAQ Albania

  • Working hours in Albania

    The normal daily working hours are 8 (eight) hours.

  • What are the main holidays in Albania?

    • New Year’s Day
    • Summer Day
    • Nevruz Day
    • Easter Sunday
    • Labour Day/May Day
    • End of Ramadan
    • Feast of the Sacrifice
    • Mother Teresa Beautification Day
    • Independence Day
    • Liberation Day
    • National Youth Day
    • Christmas Day
  • What are payroll taxes in Albania?

    • Social security: 15%.
    • Healthcare: 1.7%.
  • Hannah Kohl
    Author:
    Hannah Kohl. Head of Customer Success. Has extensive experience in the HR and IT industries. Helped 100+ international clients to achieve their global goals.

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