Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - Albania

Your quick guide on talent and labor compliance norms in Albania
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Capital
Tirana
Currency
Albanian lek (ALL)
Languages
Albanian
Payroll Frequency
Monthly
GDP per Capita
USD 6,259.60
Employer Tax
16.7%

Supplementary Guide for Employment and Expansion in Albania

Talent Overview

Albania is a developing country whose recent transition from a centralized economy to a free-market economy has resulted in the country’s steady growth since 2014. The country currently ranks as the 50th freest economy in the world due to the shift. Tourism and Agriculture are the main drivers of its economic success and have provided employment for most citizens.

Major Economic Hubs:

Tirana, Durrës, and Fier

Skills in Demand:

Call center operators, Industrial sewing machine operators, Waiters, and counter jobs, and Constructing technical

Local Universities

The top local universities in Albania are as follows:

Universiteti i Tiranës

RANKING

Local: 1

World : 6,200

Universiteti Epoka

RANKING

Local: 2

World : 6641

Universiteti i Shkodrës Luigj Gurakuqi

RANKING

Local: 3

World : 7556

Universiteti Europian i Tiranës

RANKING

Local : 4

World : 7743

Universiteti Politeknik i Tiranës

RANKING

Local : 5

World : 7917

Salary Data

Below are monthly salary ranges for jobs positions in Albania

No. Job Title Salary Range (in ALL) Salary Range (in USD)
1 Accounting Manager 70,000 - 223,000 622.90 - 1,984.39
2 Software Engineer 45,200 - 144,000 402.22 - 1,281.40
3 Data scientist 75,200 - 239,000 669.18 - 2,126.77
4 User Experience Designer 43,700 - 139,000 388.87 - 1,236.91
5 Project Manager 56,700 - 180,000 504.55 - 1,601.75
6 Sales Manager 82,200 - 262,000 731.47 - 2,331.44

Talent Sourcing Tips

Top Local Job Boards:

duapune.com, Jobisland Albania

Number of LinkedIn users:
489,300

Top Recruitment Agencies:

Balkans Recruitment, Elite Jobs, Selos Agency

Employing in Albania

Albania is filled with highly skilled candidates that become a huge asset for any business. But before taking in talented employees from the country, employers must have known all about Albanian labor laws and regulations. The following sections offer a brief overview of the rules

Employee Contract

Employment contracts in Benin must be drafted in the local language and clearly state the compensation, benefits, and termination requirements. They can be for both fixed periods and indefinite periods. However, fixed-period contracts can be drafted for up to 48 months only.

Probation Period

The probation period for Albanian employees is up to 3 months.

Public and Provincial Holidays

Date Name Type
1 Jan New Year's Day National holiday
2 Jan New Year's Day (Day 2) National holiday
3 Jan Day off for New Year's Day National holiday
3 Jan Day off for New Year's Day (Day 2) National holiday
14 Mar Summer Day National holiday
20 Mar March Equinox Season
21 Mar Public Holiday National holiday
22 Mar Nevruz Day National holiday
17 Apr Easter Sunday National holiday
18 Apr Day off for Easter Sunday National holiday
24 Apr Easter Sunday (Orthodox) National holiday, Orthodox
25 Apr Day off for Easter Sunday (Orthodox) National holiday
1 May International Workers Day National holiday
2 May Day off for International Workers Day National holiday
2 May Eid al-Fitr National holiday
10 Jul Feast of the Sacrifice (Tentative Date) National holiday
5 Sep Mother Teresa Beatification Day National holiday
28 Nov Flag and Independence Day National holiday
29 Nov Liberation Day National holiday
8 Dec National Youth Day National holiday
25 Dec Christmas Day National holiday
26 Dec Day off for Christmas Day National holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 30 days Yes
Sick Leave 14 days Yes
Maternity Leave 12 weeks Yes

Payroll

Payroll Cycle

Payroll in Albania is released either every month or every two weeks (if the salary is calculated hourly, daily, or weekly).

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Minimum Wage

The minimum wage in Albania is at ALL 182.73 per hour or ALL 32,000.00 per month

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Overtime Pay

Overtime work is discouraged in Albania. However, if necessary, employees are compensated with 125% of their hourly rate for extra work. Employees who work overtime during a rest day or public holiday are compensated a rest day or 150% of their salary.

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Health Examination Clause

Bonus

13th Month Pay

A 13th-month pay is not compulsory in Albania.

Employee Benefits

  • ~Albania offers a range of benefits for their employees. Below are some of them:
  • ~Statutory Leaves
  • ~Health Insurance benefits
  • ~Social Insurance
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Taxes

Employer Payroll Tax

Contribution Type Rate
Social Insurance 15%
Health Insurance 1.7%

Employee Payroll Tax

Contribution Type Rate
Social Insurance 9.5%
Health Insurance 1.7%

Employee Income Tax

Employee Income range (in ALL per month) Taxable income (in ALL per month) Tax rate in % per month (PIT rate)
0 - 40,000 0 - 40,000 0%
40,001 - 50,000 0 - 30,000 0%
30 001 - 50,000 50% * 13% of the amount exceeding ALL 30,000
50,001 and above 0 - 30,000 0%
30 001 - 200,000 13% of the amount exceeding ALL 30,000
200 001 - above ALL 22,100 + 23% of the amount exceeding ALL 200,000

VAT

The standard VAT rate is 20%.

Offboarding & Termination

Termination Process

Employment contracts in Albania can either be in a definite or indefinite period, and the termination process and notice period for each classification vary. The termination will only occur for a definite employment duration when the contract expires. If the employee works beyond the end date, their contract shall be considered indefinite. The contract may be terminated for indefinite employment duration by either the employer or employee. A notice must be given stating the reason for termination. 

Notice Period

Notice Period for Albanian employees is generally one month. 

Severance Pay

A Severance Allowance may be given to an employee if the termination of the contract is immediate and is due to redundancy. Moreover, severance pay in the form of a seniority-related award may be given to an employee upon termination if they have served for three years or more. The pay will be equivalent to 15 days of work for each year completed.

Visa and Immigration

Expats seeking employment in Albania must legally secure a work permit to work in the country. They must also apply for a residence permit if they are required to stay more than 90 days in the country during 180 days. The following are types of residence permits that foreigners may apply for based on the duration of their stay:

  • ~Type A - a residence permit that specifies the period for which the employee stays in the country;
  • ~Type B - a residence permit that is limited for a definite period and can be renewed
  • ~Type C - a residence permit that is permanent and guarantees its holder the right to enter, stay and exit the country
  • ~Type S - a residence permit for seasonal workers.
  • ~AL Blue Card - a renewable residence permit issued to highly qualified workers.
  • ~AL-C Blue Card - a permanent residence permit issued to highly qualified workers.
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