Employer of Record in Albania

General information

• Currency: Albanian Lek (ALL)
• Employer Taxes: 16.70%
• Payroll Frequency: Monthly
• Employee Costs: 11.2%
• Capital: Tirana
• Fiscal Year: 1 January – 31 December

Main Aspects of the Labour Code

Minimum Wage

General: The national minimum wage in Albania was raised to 34,000 ALL effective from September 2022.

Payroll

Payroll Cycle: In Albania, the standard payroll cycle is monthly, with wages typically paid by the last working day of each month. However, employees paid on an hourly, weekly, or daily basis may receive payments every two weeks.

13th Salary: There is no provision for a 13th salary in Albania.

Working Hours

General: According to Albanian labor law, standard working hours are set at 40 hours per week, equating to 8 hours per day for adults. For employees under 18 years old, the maximum daily hours are reduced to 6.

Overtime: Any work exceeding the standard 40 hours per week is compensated at a minimum rate of 25% above the standard pay rate. Work done during weekends or public holidays requires a minimum overtime rate of 50% above the standard pay rate. Alternatively, overtime can be compensated with time off instead of payment.

Collective agreements and contracts govern overtime, with the Albanian Labor Code limiting employees to a maximum of 200 hours of overtime per year. Employers cannot require employees to work overtime if they have already worked 48 hours in a week, except under exceptional circumstances lasting up to four months, during which an employee’s average weekly working time cannot exceed 48 hours. Additional restrictions apply to overtime for night workers, pregnant employees, and those under 18 years old.

Leave

Annual Leave (Vacation): Employees in Albania are entitled to 28 calendar days (20 working days) of paid annual leave after completing one year of service. This leave must be taken during the working year or within the first three months of the following year. Employees with less than a year of service receive leave days pro-rated accordingly. Requests for leave must be submitted to the employer at least 30 days before the intended start date.

Public Holidays: Holidays that fall on weekends in Albania are observed on the following working day(s).

Sick Days

Employees in Albania can claim sick leave for the duration of their illness until their doctor confirms their ability to return to work. During the first 14 days of sick leave, the employer is required to pay 80% of the employee’s salary. From the 15th day onward, social insurance compensates the employee with 70% of their average salary for the past 6 months.

Maternity Leave

Expectant mothers who have worked continuously for 12 months are entitled to up to one year of paid maternity leave. This includes a minimum of 35 days before childbirth and 63 days after delivery. After the initial 63 days, the employee can choose to extend their leave or return to work. For mothers expecting twins or more, maternity leave extends to 390 days.

Maternity pay is calculated at 80% of the employee’s average monthly salary for the first six months, and 50% for the following six months, as outlined in Article 104 of the Labor Code.

Paternity Leave

As of now, there is no mandated paternity leave in Albania. However, a proposed amendment in October 2020 suggests granting fathers three days of paid leave under the Albanian Labor Code and Social Security Law (96.3).

Parental Leave

Parental leave in Albania consists of 12 paid days to care for a child. Additionally, employees with children under three years old are eligible for an extra three days of paid leave. They may also request up to thirty additional days of unpaid leave per year for childcare needs.

Bereavement Leave

In the unfortunate event of the death of an immediate family member, employees are entitled to two days of bereavement leave.

Childcare Leave

Employees with dependent children under three years old are entitled to a maximum of 15 days of paid leave if the child is ill, supported by a medical certificate. Additionally, they can take up to 30 days of additional unpaid leave per year if necessary. This leave can be taken by the spouse or alternatively by the parents who are effectively caring for the child.

Marriage Leave

Employees in Albania are entitled to five days of leave for their own marriage. For the marriage of a child, two days of leave are granted.

Brain Source International serves as an Employer of Record (EOR) in Albania, offering comprehensive solutions for businesses seeking to expand their workforce in the region. As an EOR, Brain Source International handles all aspects of employment compliance, including payroll management, tax withholding, benefits administration, and regulatory adherence. This allows companies to streamline operations, mitigate legal risks, and focus on their core business activities without the complexities of establishing a legal entity in Albania. Brain Source International ensures that all employment practices align with Albanian labor laws, providing peace of mind and operational efficiency to international employers.

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