Payroll & Employment Guide Kosovo flag

Payroll & Employment Guide Kosovo

Kosovo is becoming a rising talent hub in the Balkans, with a young, educated, and multilingual workforce. With their competitive labour costs and increasing investment in digital skills and tech education, Kosovo presents attractive conditions for global companies looking to expand their workforce.

Payroll & Employment Guide Kosovo
CurrencyEuro (EUR)
LanguagesAlbanian, Serbian
Minimum wageEUR 350 per month
Employment cost5-6%
Working hours40 hours per week
VAT18%
Probation periodUp to 6 months
Paid leave days20 working days
Categories

Hiring guide

Kosovo is gaining recognition as a cost-effective and talent-rich destination for global hiring, particularly in sectors such as IT, customer support, and business services. The country has its employment regulations, including rules for minimum wages, employment contracts, and social security contributions, that employers must handle carefully.

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

Employment contracts

Employment contracts in Kosovo are crucial for formalising the relationship between the employer and the employee. As such, they must contain the key employment terms and conditions, including personal data, job title, working hours, annual leave, notice periods, and similar.

Notice periods: From 30 to 60 days.

Termination of employment: Termination must be in writing, and it may be for reasons such as ordinary dismissal, extraordinary termination, or employee-initiated termination.

Want to get all the details of employment contracts in Kosovo? Get our full template now!

Employee benefits

Employers who hire in Kosovo must provide mandatory employment benefits in compliance with the country’s labour laws. Many of them also offer extra benefits to stay competitive in the job market. Understanding both of them is essential to attracting and retaining talent.

  • Mandatory benefits: Pension contributions.
  • Common perks: Meal vouchers, transport reimbursements.
  • Leave policies: Paid annual leave, sick leave, maternity leave.

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

Taxes

Kosovo has a structured tax system that employers must follow to stay compliant. Employers are responsible for withholding personal income tax and pension contributions from employees’ salaries. Additional regulations apply to corporate income tax, VAT, royalty income, and others.

Personal income tax rate: Progressive, from 0% to 10%.

VAT: 18%

Payroll

Salaries in Kosovo must meet or exceed the minimum salary established by the Government. The minimum salary is determined by factors such as the minimum cost of living, unemployment rates, labour market situation, general salary levels in Kosovo, and similar.

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

Taxes and contributions payment deadline: By the 15th of the following month.

Payroll declarations deadline: By the 15th of the following month.

Payroll currency: EUR

EOR services

With EOR services, you can legally employ individuals in Kosovo without establishing your own legal entities. Your EOR partner will act as the official employer for your team, taking over responsibilities like:

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

PEO services

PEO services in Kosovo provide HR and administrative support while you remain the legal employer for your team. As such, they are beneficial for employers who already have legal entities in Kosovo but need help with their employee operations, including:

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

Payroll calculator

Native Teams provides payroll calculators that are adapted to 85+ countries’ local labour laws. Using our calculator, you can easily estimate net/gross salaries, contributions, and other mandatory deductions in Kosovo.

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 in Kosovo are generally considered self-employed and are not subject to standard labour protections granted to full-time employees. They are responsible for managing their own taxes and social contributions, and the working relationship shouldn’t resemble an employer-employee setup to avoid misclassification risks.Â