Albania EOR & PEO
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DID YOU KNOW
- Albania is renowned for its diverse landscapes, featuring pristine beaches along the Adriatic and Ionian Seas, as well as majestic mountains and hills inland.
- The country boasts a rich cultural heritage, with influences from Illyrian, Greek, Roman, Byzantine, and Ottoman civilizations.
- Albania is home to several UNESCO World Heritage Sites, including the ancient city of Butrint and the historic centers of Berat and Gjirokastër.
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Working in Albania
Financial Year Dates
Albania’s financial year runs from January 1st to December 31st.
Minimum Wage
As of April 2025, the minimum wage in Albania is ALL 40,000 per month, based on a 40-hour working week.
Standard working hours
The standard workweek in Albania is 40 hours, typically divided into five 8-hour workdays. Most businesses operate from 9 AM to 5 PM, though flexible working hours are becoming more common, particularly in sectors such as information technology and finance.
Overtime
Overtime work in Albania is compensated at a minimum rate of 125% of the employee’s regular hourly wage. Alternatively, employers may offer compensatory time off at a rate of 1.25 hours for each overtime hour worked, to be used within two months.
Holiday Allowance
Employees in Albania are entitled to a minimum of 20 working days of paid annual leave. Public holidays are additional to this leave. Additional leave may be granted based on the terms of the employment contract or sector-specific agreements.
Sick Leave
Employees are entitled to paid sick leave, with compensation typically covered by the social insurance system. The specifics of sick leave compensation may vary depending on the employment contract and the duration of the illness.
Maternity & Paternity Leave
Female employees are entitled to 365 days of maternity leave, typically divided into 35 days before and 330 days after childbirth. Compensation during this period is provided through the social security system. Fathers are entitled to 5 days of paid paternity leave following their child’s birth.
Public Holiday
Albania observes several public holidays throughout the year, including:
- New Years Day
- Day after New Year’s Day
- Summer Day
- Nevruz
- Eid ul Fitar
- Orthodox Easter Day
- Labour Day
- Eid Al Adha
- Saint Teresa Canonisation Day
- Independance Day
- Liberation Day
- Albanian National Youth Day
- Christmas Day
Social Contributions
In Albania, both employers and employees are required to contribute to the country’s social security system, which includes health insurance, pensions, and other social welfare programs.
Employers:
- Social Insurance Contribution: 15%
- Health Insurance Contribution: 1.7%
Employees:
- Social Insurance Contribution: 9.5%
- Health Insurance Contribution: 1.7%
Income Tax
From January 1, 2025, taxable income from employment is taxed at the following progressive rates:
- Annual income up to ALL 2,040,000: 13%
- Annual income over ALL 2,040,000: 23%
Health Care
Albania provides public healthcare services organized at primary, secondary, and tertiary levels. Approximately 413 public healthcare clinics offer primary and secondary healthcare services, and 42 public hospitals offer tertiary healthcare services. Pharmaceutical and dental services are predominantly private.
Visas
Albania offers various visa options for foreign nationals aiming to work, invest, or reside in the country:
Work Permit:
Foreign nationals intending to work in Albania for more than three months must obtain a work permit before commencing employment. Applications can be made through the Migration Office, the Albanian Embassy in the applicant’s country of origin, or the regional labor office.
Business Visa:
Entrepreneurs and investors looking to establish or manage a business in Albania can apply for a business visa. This visa category permits individuals to engage in commercial activities, including setting up a company in Albania.
Temporary Residence Permit:
This permit allows foreigners to reside in Albania for various reasons, such as employment, study, or family reunification. The application requires specific documentation depending on the purpose of stay.
Family Reunification:
Foreign nationals residing legally in Albania can apply to bring their family members through the family reunification program, provided they meet the necessary requirements.
By choosing Gibson Watts Global as your Employer of Record (EOR) in Albania, you can tap into the country’s growing business potential while ensuring compliance with local laws and regulations. Let us handle the administrative details so you can focus on expanding your business in this dynamic and culturally rich region.
13th salary
Albania does not have a statutory requirement for a 13th salary. However, in some industries, it is common for employers to provide bonuses or extra salary payments, particularly around the holidays.
Cultural Information
Albanian cuisine reflects Mediterranean and Balkan influences, featuring dishes like byrek (a savory pastry), tavë kosi (baked lamb with yogurt), and fresh seafood along the coast.
Family is the cornerstone of Albanian society, often with extended families living close together or under one roof. Respect for elders is deeply ingrained.
Folk music plays a big role in Albanian culture, with each region having its own distinctive style. The use of traditional instruments such as the çifteli (a two-stringed instrument) and polyphonic singing, especially in southern Albania, is UNESCO-recognised.