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.

The conventional strategy calls for the establishment of a subsidiary in Albania. Our approach, however, enables you to launch operations in Albania in a matter of days, saving you both time and money. While you have complete operational control over your job, WeHG would hire candidates on your behalf. Therefore, technically, they would be our employees on our local payroll, fully compliant, but operating on your behalf.

Albania fast facts

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

GDP per capita:$ 6,089
GDP in currency:$ 17.2 billion

The state of Albania is located in the western Balkan Peninsula. Albania is a parliamentary republic and a unitary state. Twelve regions make up the nation. Albania is one of the nations in Europe with a predominantly Muslim population, along with Bosnia and Herzegovina and the Republic of Kosovo, which is only partially recognized. Since 2009, Albania has been a member of NATO. Albania is also a legitimate candidate for membership in the EU (since 2014). Albania has changed from being one of the most impoverished nations in Europe to a nation with an upper-middle-class income. The nation is putting into effect significant reforms to boost productivity and competitiveness while reviving growth and job creation.

Hiring, Negotiating and Doing Business in Albania

The necessity of a written employment contract

A written or verbal agreement can serve as the basis for a labour contract. That is, in this situation, a written sample must be given to an applicant by an employer within 30 days of the start of employment. 

Different forms of engagement: employment, contracting, work with a 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

Albania working hours

The total number of working hours per week cannot exceed 40 hours due to the Albanian Labor Code. An average working shift lasts for eight hours.

Overtime

The overtime compensation offered by the Albanian Labor Code is equal to 25% of the regular salary. Unless otherwise specified by the collective contract, working on weekends and on holidays is paid at 50% of the regular rate. 

Vacation leave in Albania

According to the Labor Code, Albania’s minimum paid yearly leave is 4 weeks. The calculation of annual leave takes into account working time, just like it does for sick leave. The timing of an employee’s vacation is up to them, although they are required to put a notification across to employer 30 days prior to the 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 employment contract says that the notice period has a certain definition (definite term contract). Both parties should resort to the Albanian Labor Code in the event of an indefinite employment relationship. As a result of the law, the notification period can be altered by both parties in a written contract and must last at least 5 days of the probationary period. 

Albania Tax

The corporate income tax (CIT) rate in Albania is 15%

The following tax rates apply to income generated from employment:

Health Insurance Benefits in Albania

Payable health insurance benefits begin on the fifteenth day and last for six months after a medical certification. If a worker has less than 10 years of contributions, their compensation is equivalent to 70% of the average daily payment; if they have more than 10 years of contributions, it is equal to 80%.

Additional Benefits in Albania

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.