Understanding Employment Norms in Albania: A Comprehensive Guide
Tarmack LogoRequest a demo
HP Top Banner

Hiring Talent And Managing Payroll In Albania

Get Started

Hiring in Albania? Read on to find out the employment norms (like taxes, payroll and benefits) and EOR (Employer on Record) norms in Albania.

Employment Norms in Albania

Albania's labor laws set employment rules. These laws are meant to protect the rights of workers and encourage fair and equal working conditions. Albania's economy is diverse, with agriculture, manufacturing, tourism, and services as some of its most important industries.

General Information:

  • The official currency of Albania is the Albanian Lek (ALL).
  • The capital city of Albania is Tirana.
  • Albanian is the official language of the country. Legal documents are written in Albanian.
  • Albania's GDP is expected to touch 18.73 USD Billion in 2023
Albania's labor laws cover things like the minimum wage, working hours, health and safety, and other aspects of employment. These laws protect the rights of workers and make sure they have fair and safe working conditions.
Albania map

Table of Contents

  • Agreements
  • Onboarding Process
  • Visa
  • Minimum Wage
  • Payroll Cycle
  • Annual Bonus
  • Health Benefits
  • Working hours and overtime
  • Leaves
  • Social Security
  • Taxes for Employers
  • Taxes for Employees
  • Probation
  • Termination
  • Severance Pay
  • Employees or Contractors
  • Final Words


In Albania, the following agreements play a key role in regulating labor and employment:
  • Labor Code: The Labor Code sets out the general framework for employment relationships, including provisions on working hours, minimum wage, termination of employment, and health and safety.
  • Collective Bargaining Agreements: Collective bargaining agreements are agreements between employers and employees or their representatives, setting out the terms and conditions of employment for workers in a particular sector or workplace.
  • Employment Contracts: Employment contracts are legally binding agreements between an employer and an employee. It defines the terms and conditions of employment.
  • International Labor Organization (ILO) Conventions: Albania is a member of the ILO and has ratified several ILO Conventions, including Conventions on freedom of association, the right to organize and collective bargaining, forced labor, and non-discrimination in employment.
Onboarding Process

Onboarding Process

In Albania, the employee onboarding process typically includes the following steps:
  • Offer of Employment: First, the employer makes a written offer of employment to the candidate, setting out the terms and conditions of the job.
  • Acceptance of Offer: The candidate must then accept the offer of employment in writing.
  • The signing of the Employment Contract: After accepting the job offer, both the employee and the employer must sign a written employment contract that spells out the terms and conditions of the job.


Albania offers several work visas and licenses, including:
  • Employment Visa: Foreigners working in Albania for longer than 90 days need an employment visa. The Albanian government issues employer-specific visas.
  • Residency Permit: Non-Albanians need a residence permit to live and work there for more than 90 days. The Albanian government issues employer-specific authorization.
  • There are several types of visas available for individuals who wish to live and work in a country. Type A permits specify the period of stay, while Type B permits are limited but can be renewed. Type C permits are permanent and provide the right to enter, stay and leave the country. Seasonal workers can apply for a Type S permit, while highly skilled workers can apply for an AL Blue Card, which is renewable, or an AL-C Blue Card, which is permanent. These permits provide individuals with the legal ability to live and work in a foreign country.

Tarmack helps you easily hire international talent as your full time employees without opening international subsidiaries. Find out more about our Employer of Record services

Learn More
Minimum Wage

Minimum Wage

32,000 Albanian Lek is the minimum monthly wage in Albania. The minimum hourly pay is ALL182.73. The minimum wages are based on industry and other variables.
Payroll Cycle

Payroll Cycle

In Albania, people usually get paid monthly. Most of the time, employees get paid on the last working day of each month. In the absence of specific laws, it is common for employers to use a monthly payroll cycle. However, some employers may choose to use a bi-monthly or weekly payroll cycle instead.
Annual Bonus

Annual Bonus

Albanian workers do not receive fixed annual bonuses. However, many firms give annual bonuses as performance-based pay or rewards for good work.
Health Benefits

Health Benefits

Albanian employers may offer these health benefits:
  • Many firms provide health insurance to employees. Hospitalization, outpatient treatment, and prescription medicines are covered by insurance.
  • Mandatory workers' benefits in Albania include travel health insurance, health insurance, life insurance, accident insurance and retirement.
Working hours and overtime

Working hours and overtime

  • Most Albanians work 40 hours Monday through Friday. Some firms allow employees to work from home or have a shorter workday than eight hours.
  • Workers get a 30-minute break. The break's duration and timing depend on the business and the employee's employment.
  • Overtime: Depending on their job contract and current laws, overtime workers may receive extra money or time off.


Albanian workers are entitled to sick, parental, and annual leaves.
  • Sick Leave: Employers provide 14 days of sick leave to employees who are sick or injured. These leaves are provided at different rates by different employers, based on the tenure of the employee in an organization.
  • Maternity Leave: Maternity leave of 365 days is provided to pregnant employees after contributing to social security for a tenure of 12 months. Leave of 35 days must be taken before the birth of the child and 63 days of leave should be taken after the birth of the child.
  • Parental Leave: The cohabitant or the father can take paternal leave for 3 days after the birth of the child.
  • Annual Leave: 30 days of mandatory annual leave is provided to the employees.

Public Holidays (for the Calendar year 2023)

  • New Year (1st January)
  • New Year Holiday (2nd January)
  • New Year Holiday (3rd January)
  • Summer Day (14th March)
  • Nevruz Day (22nd March)
  • Catholic Easter Sunday (9th April)
  • Catholic Easter Monday (10th April)
  • Orthodox Easter Sunday (16th April)
  • Orthodox Easter Monday (17th April)
  • Eid al-Fitr (21st April)
  • Labor Day (1st May)
  • Eid al-Adha (28th June)
  • Saint Teresa Sanctification Day (5th September)
  • Flag and Independence Day (28th November)
  • Liberation Day (29th November)
  • National Youth Day (8th December)
  • Christmas Day (25th December)

If you structure your global talent acquisition strategy well, you will definitely enhance your talent quality and availability through a distributed workforce. Tarmack offers end to end recruiting services to help you achieve this.

Schedule Consultation
Social Security

Social Security

The Institute of Social Insurance is in charge of Albania's social security system. It gives eligible employees a variety of benefits, such as old-age pensions, disability benefits, and death benefits. The employee payroll contributions in Albania include 9.5% for social security and 1.7% for health insurance. The employer payroll contributions in Albania entail 15% for social security and 1.7% for health insurance.
Taxes for Employers

Taxes for Employers

Here are a few of the most important taxes paid by the employer:
  • 15% is paid as social security
  • 1.7% is contributed to health insurance
Employer cost is calculated at 16.7% of the salary of the employee.

Did you know that as a part of the Employer of Record service, Tarmack offers global payroll across 100+ countries? Not just that, we even offer this global payroll service on a standalone basis. So if you're looking for a payroll provider for one or more countries, you're at the right place.

Learn More
Taxes for Employees

Taxes for Employees

In Albania, workers have to pay several taxes, such as:
  • Income Tax: An employee's salary is subject to personal income tax. Depending on how much money someone makes, the tax rate ranges from 0% to 23%.
  • Social Security: All workers are required to pay into the social security system. At the moment, employees pay 9.5% of their salary into the fund.
  • Health Insurance: 1.7% is paid into health insurance by the employees.


In Albania, the rules for probation periods for employees are regulated by the Labor Code. According to the Labor Code, the maximum length of a probation period is 3 months.

Ready to convert your contractor to a full time employee?

Every now and then, that contractor you hired does such a good job that you want to hire them as a full time employee. Convert such contractors into your full time employees by using Tarmack's Employer of Record service. Doesn't matter where the contractor is. Our service covers 150+ countries around the globe!

Talk To Us


In Albania, a job contract can be ended in any of the following ways:
  • By mutual agreement of both parties.
  • Voluntary termination by the employee.
  • Unilaterally by the employee based on objective grounds, dismissal based on discipline and at the end of the probation period.
Severance Pay

Severance Pay

In Albania, an employee's severance pay is usually based on how long they worked for the company. According to Albanian labor law, employees who are fired without cause are entitled to severance pay equal to their average monthly salary for each year of service. The exact amount of severance pay may depend on the terms of the employee's employment contract.
Employees or Contractors

Employees or Contractors

In Albania, there are different legal definitions for employees and contractors:
  • An employee is someone who has signed a contract with their employer and does their work under the direction and control of their employer. Albanian labor law says that an employee is entitled to a regular salary and several benefits and protections, such as the minimum wage, health benefits, and unemployment insurance.
  • Moreover, a contractor is a business person who works for themselves and does work for another business or person. Albanian labor law specifies that contractors are not the same as employees and do not get the same benefits and protections.If an employee is misclassified as a contractor, the employer may have to pay fines and make up for benefits and taxes that were not paid. Employers must correctly classify their employees and contractors to follow Albanian labor laws and stay out of trouble with the law.
Final Words

Final Words

Albania has a strong job market with many job opportunities for both locals and people from other countries. The country has laws and rules about work that make sure employees are treated fairly. For example, there are rules about the minimum wage, time off, and social security. Employers have to meet certain tax requirements, and employees also have to meet their tax requirements. For a smooth and successful hiring process, it's important to know the different rules and customs of the Albanian job market.

A truly global HR platform with everything you need to build, grow & manage a global team.

  • bestTalentIdentifying & recruiting the best talent
  • payrollPayroll with full compliance across 100+ countries
  • agreementsEmployment agreements as per local laws
  • contractorContractor invoices & time management
  • onboardingSmooth remote onboarding of employees
  • immigrationImmigration & mobility services around the world
Find Out More