Payroll & Employment Guide Albania flag

Payroll & Employment Guide Albania

Albania is becoming an increasingly growing talent hub in Southeastern Europe, known for its educated and multilingual workforce, and competitive labour costs. With a young population and increasing digital adoption, Albania offers many opportunities for businesses looking to expand and hire remotely.

Payroll & Employment Guide Albania
CurrencyAlbanian Lek (ALL)
LanguagesAlbanian
Minimum wageALL 40,000 per month
Employment cost16-20%
Working hours40 hours per week
VAT20%
Probation periodUp to three months
Paid leave days20 working days
Categories

Hiring guide

Located on the Balkan Peninsula, Albania is a country known for its well-educated talent pool and attractive employment costs for global companies. The country has its own specific rules regarding minimum wages, employment contracts, and social security contributions that employers need to follow.

Discover more about salaries, employment costs, and legal requirements for hiring in Albania. Get the full hiring guide now!

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Employment contracts

Employment contracts in Albania must be in written form and compliant with the national Labour Code. Whether they’re fixed-term or indefinite contracts, they must always outline the working relationship, rights, and responsibilities of both the employer and the employee.

Notice periods: Ranging from two weeks to two months

Termination of employment: Termination can occur through normal processes, immediate dismissal for cause, or mutual agreement, depending on the scenario.

Want to learn more about employment contracts in Albania? Get our full template now!

Employee benefits

Employers in Albania must provide mandatory employment benefits in line with the country’s labour law. Many of them also offer extra perks to stay competitive in the job market. Understanding both of them is essential to attracting and retaining talent.

  • Mandatory benefits: Healthcare, pension.
  • Common perks: Meal vouchers, transport reimbursements.
  • Leave policies: Paid annual leave, sick leave, parental leave.

Want a full breakdown of all the employee benefits available in Albania?

Taxes

Albania has a structured tax system that applies to both individuals and businesses. Employers are responsible for withholding income taxes and social security contributions, while additional tax rules apply to royalty income and VAT.

Personal income tax rate: 13% or 23%, depending on the amount of income.

VAT: 20%

Tax allowances: Personal income allowance, Children’s education expenses.

Additional tax reliefs: N/A

Payroll

Employers are required to pay salaries as outlined in individual or collective contracts, and they can’t be less than the minimum wage set by the Council of Ministers. Salaries must be paid on a monthly basis, unless otherwise agreed upon.

Salary payment deadline: By the 5th of the following month.

Taxes and contributions payment deadline: By the 20th of the following month.

Payroll declarations deadline: By the 20th of the following month

Payroll currency: ALL, EUR, or USD.

Want to explore Albania’s regulations about payroll, salaries, and contributions in more detail?

Work permits & visas

Foreign citizens working in Albania are required to obtain the appropriate work permits and visas. The process, permit type, and costs are different depending on the applicant’s nationality, job role, and length of stay.

Types of permits: EU, US, and Kosovo nationals can get a five-year Unique permit; other foreign nationals may receive permits of varying lengths.

Process length: Up to 3 months

Process cost: 1800€

Want to learn more about obtaining visas and work permits in Albania? Get our full country handbook now, or click here to find out more!

EOR services

Using EOR services in Albania allows you to legally employ individuals in the country without opening legal entities there. The EOR takes over all the legal responsibilities as an official employer, including:

  • Legal employment and contracts
  • Payroll processing
  • Tax withholding
  • Benefits administration
  • Onboarding/offboarding employees

PEO services

Using PEO services in Albania provides HR and administrative support, while you remain the legal employer. PEO services are ideal for employers who already have legal entities in Albania but need support to manage their workforce operations, including:

  • HR support and workforce administration
  • Payroll and benefits management
  • Compliance and local labour law guidance
  • Employment contracts assistance

Payroll calculator

Native Teams provides a payroll calculator adjusted per Albania’s labour laws. Using our calculator, you can easily estimate net and gross salaries, employer/employee contributions, and other mandatory deductions in the country.

Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.

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Frequently asked questions

Freelancers and gig workers in Albania typically must be registered as self-employed and handle their own taxes and contributions. As a client, you’re not responsible for these, but you must make sure your work relationship doesn’t resemble full-time employment to avoid misclassification.

 

When working with freelancers, it’s also important to have a clear agreement that outlines the scope of services, responsibilities, payment terms, and other important details.