Salary Calculator
Kosovo

Our salary calculator for Kosovo can help you estimate the net income based on the gross salary, while factoring in the country’s mandatory deductions and tax regulations.

Once the gross salary is provided, the calculator deducts the mandatory contributions to social security, which are required from both the employer and the employee.

In addition to social security contributions, Kosovo has a progressive income tax system. The salary calculator will apply the applicable tax rate, depending on the income bracket the employee falls into.

After all these taxes and deductions have been applied, the calculator provides the net salary, which is the amount the employee takes home on their payday. 

The costs of salary in Kosovo include several components such as income tax and social security contributions, which are mandatory and must be paid by both the employer and the employee.

The gross salary represents the total salary before any deductions are applied. This amount serves as the basis for calculating the applicable taxes and contributions, and therefore, estimating the net salary.

Both employers and employees contribute to social security with 10% of the gross salary (5% each). In addition to the mandatory 10% contribution, both the employer and the employee have the option to contribute voluntarily to the pension system. The total contribution can be up to 30% (15% for each party). This means that both the employer and the employee can choose to contribute more than the compulsory amount, with a maximum combined contribution of 30% of the gross salary.

Employees in Kosovo are also entitled to a health insurance premium, which amount is split equally between both parties and submitted by the employer to the Kosovo Health Insurance Fund (KHIF). The health insurance contribution is calculated differently for different categories of employees (depending on the sector of work and other factors).

In addition to social security contributions, employed individuals in Kosovo are subject to a progressive income tax rate, which is calculated depending on their level of income. 

Every employed person in Kosovo must submit an income tax rate, which is calculated progressively. The amount depends on the level of income, and the employer is responsible for withholding this amount and remitting it to the country’s tax authorities.

The following are the current income tax rates in Kosovo:

-Income up to €3,000: Tax rate of 0%.

-Income from €3,000 to €5,400: Tax rate of 8%.

-Income over €5,400: Tax rate of 10%.

*Please note that these rates can vary based on legislative changes.

Employers in Kosovo are required to provide a set of mandatory employment benefits for their employees in the country. These benefits include contributions to the mandatory pension system and public health insurance system. In addition to this, employers must provide paid time-off, such as sick leave, annual leave, maternity/paternity leave, and public holidays for their employees. 

All employers must comply with these benefits regulations to ensure legal protection and social security of their employees in Kosovo.

Companies in Kosovo often provide a range of extra benefits in addition to mandatory employee benefits. These benefits typically vary, depending on the employer and the industry.

Additional health insurance is among the most commonly provided extra benefits, supplementing the mandatory health insurance. This provides employees access to private clinics, better medical care, or coverage for additional medical services.

Although pension contributions in Kosovo are mandatory, some employers might offer to match additional voluntary contributions for employees who wish to save more for retirement.

Many employers also provide more generous vacation packages, including additional days off, beyond the legal minimum for paid leave.

Finally, employers in Kosovo might also provide meal vouchers or allowances, transportation allowances, bonus payments, and other financial rewards for their employees. 

In the Kosovo salary calculator, gross salary refers to the total amount an employee earns before any deductions or taxes are applied. 

The net salary, on the other hand, is the amount the employee takes home after all applicable deductions have been made from the gross salary. This includes income tax, social security deductions, and other mandatory contributions required by law.

In simple terms, the gross salary is the pre-deduction amount, and the net salary is the post-deduction amount that the employee receives in their bank account.