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Hire and manage employees in Albania

As your Employer of Record (EOR) in Albania, we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Last updated:
July 16, 2025
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Quick facts

Albania, located in Southeastern Europe, has a growing economy driven by sectors such as agriculture, energy, and tourism. As a candidate for EU membership, Albania has made significant strides in modernizing its labor laws to align with European standards. These laws ensure fair working conditions, regulated working hours, and comprehensive employment benefits.

Employment Contracts

In Albania, various types of contracts are available:

  • Individual and Collective Contracts: For permanent or temporary employment.
  • Part-Time and Full-Time Contracts: Based on work hours.
  • Home-Based Employment Contracts: For remote work arrangements.
  • Employment Agency Contracts: For temporary roles.
  • Apprenticeship/Internship Contracts: For skill development.

Probation Period

The standard probation period in Albania is up to 3 months. During this period, either party may terminate the contract with a minimum of 5 days' notice.

Working Hours

The maximum working hours are 8 hours per day or 40 hours per week. Weekly rest includes at least 36 consecutive hours, with Sunday being a mandatory rest day. Overtime work is compensated as follows:

  • 20% higher pay for work from 7:00 PM to 10:00 PM.
  • 50% higher pay for work from 10:00 PM to 6:00 AM or on public holidays.

Overtime is capped at 200 hours per year.

Vacation Days

Employees are entitled to at least 4 weeks of paid annual leave. For partial years, leave is calculated proportionally. Unused leave is compensated upon termination. Employees may also request up to 5 days of paid leave for events such as marriage or the death of a close relative.

Sick Leave

  • The first 14 days of sick leave are paid by the employer at 100% of the gross salary.
  • From the 15th day onward, payments are covered by social insurance. The total sick leave period cannot exceed 6 months.

Wages and Salary Payment

Wages are typically paid monthly:

  • Salaried employees receive payments by the last working day of the month.
  • Hourly, daily, or weekly workers are paid every two weeks.

In 2024, the national minimum wage was €396.6 per month.

Public Holidays

Albania observes 15 public holidays, including:

  • January 1: New Year’s Day
  • March 3: Liberation Day
  • May 1: Labour Day
  • December 25: Christmas Day

If employees work on a public holiday, they must be compensated with 25% higher pay. If the holiday falls on a weekend, the following Monday is observed as a day off.

Employer Taxes

Employers contribute:

  • 15% of gross salary for social security.
  • 1.7% of gross salary for health insurance.

The minimum salary for social security calculations is 30,000 ALL, while the maximum is 132,312 ALL.

Employee Taxes

Employees contribute:

  • 9.5% of gross salary for social security.
  • 1.7% of gross salary for health insurance.

Income tax rates are:

  • 0% for salaries up to 30,000 ALL.
  • 13% for salaries from 30,001 to 150,000 ALL.
  • 23% for salaries above 150,000 ALL.

Notice Period

Notice periods depend on the length of service:

  • 5 days for employees in probation.
  • 2 weeks for employment up to 6 months.
  • 1 month for 6 months to 2 years of work.
  • 2 months for 2 to 5 years.
  • 3 months for over 5 years.

Termination and Severance Pay

Contracts may be terminated for justifiable reasons or by mutual agreement. If terminated without reasonable cause:

  • The employee can file a lawsuit within 180 days.
  • The employer must pay compensation up to 1 year’s salary, including notice period pay, if ordered by the court.
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Frequently
Asked
Questions

What is International EOR and PEO?

International EOR (Employer of Record) and PEO (Professional Employer Organization) are services that enable businesses to compliantly hire, manage, and pay employees in foreign countries without the need for establishing a legal entity. EOR acts as the legal employer while PEO co-employs workers, handling administrative tasks such as payroll, taxes, and benefits.

Does Acvian handle time record submissions?

Acvian does not handle time record submissions directly. It is the client’s responsibility to track and submit employee work hours. However, Acvian can offer guidance and best practices to ensure efficient time tracking and compliance with local labor laws.

How can employees view their payroll details?

Employees can view their payroll details through the monthly payslips they receive and also via our Acvian platform. These payslips contain information on earnings, deductions, taxes, and net pay, giving employees a clear overview of their monthly payroll. Please note that in some countries, employers are restricted from viewing payslips due to data protection regulations, and only employees can share their payslips. For more details on these regulations, please contact our specialists.

How Acvian handles payroll disputes?

Acvian addresses payroll disputes promptly, working closely with both the client and the employee to investigate and resolve any issues.

Does Acvian require advanced monthly payments of salaries and service?

Yes, Acvian requires advanced monthly payments for salaries and service to ensure timely and accurate payroll processing.

Can Acvian provide consultations regarding a labor and tax legislation?

Yes, Acvian can provide consultations regarding labor and tax legislation. Our team of experts is well-versed in local regulations and can offer guidance to help your business maintain compliance, reduce risk, and navigate the complexities of international employment and taxation laws.

Which benefits does Acvian provide?

Acvian provides a diverse range of benefits, including but not limited to:

  • Health insurance
  • Car leasing
  • Gym allowance
  • Per diem compensation
  • Maternity leave

We can customize and offer many kinds of benefits requested by the client, ensuring that your employees receive the support and perks that align with your company culture and local regulations.

Can Acvian provide private health insurance?

Acvian can provide private health insurance options as part of its comprehensive employee benefits package.

What would the monthly/yearly costs for the employee be?

The monthly/yearly costs for an ‘average’ package vary depending on the specific plan and location. See our estimated price packages here. Acvian’s team can provide detailed cost breakdowns based on your requirements.

Can Acvian help with entity set up?

While Acvian doesn’t directly provide entity set-up services, we can introduce you to local lawyers who specialize in this area to assist you with your needs. See also, when it's better to set the entity or use the EOR.

Offboarding: how it is handled?

Offboarding is managed by Acvian in a structured and compliant manner. We coordinate with your business to ensure all necessary documentation, exit interviews, and final payments are completed. Acvian also ensures adherence to local labor laws and regulations, including providing any required notice periods and managing the termination process.

When does business need it?

Businesses typically need EOR and PEO services when they:

  • Expand into new international markets.
  • Hire remote employees in foreign countries.
  • Seek to streamline global workforce management.
  • Aim to ensure compliance with local labor laws and regulations.
  • Want to reduce the time and cost of establishing legal entities abroad.

Is Acvian compliant with GDPR?

Yes, Acvian is fully compliant with GDPR regulations. We collect and process personal data in accordance with the law, ensuring that data is used only for general, allowed purposes such as marketing and other legitimate business activities.

Where can Acvian supply EOR services?

Acvian can supply EOR services in over 180 countries, encompassing almost all European nations, the United States, and Canada, providing extensive coverage to support your business’s global expansion and workforce management needs. See our coverage here.

How does payroll work under EOR?

Under EOR, Acvian manages the payroll process by:

  • Acting as the legal employer of your foreign workforce.
  • Handling salary calculations, deductions, and disbursements.
  • Ensuring compliance with local tax and labor laws.
  • Managing payroll taxes, social contributions, and benefits.
  • Providing timely and accurate payroll processing for your employees.

Explore the details here.

Can you provide support for expatriate EOR workers?

Yes, Acvian provides comprehensive support for expatriate EOR workers, including:

  • Visa and work permit assistance.
  • Relocation and housing support.
  • Local registration and compliance.
  • Payroll and tax management.
  • Coordination of benefits and insurance coverage.

Explore in details here.

What are the details of expats support?

Expats support from Acvian encompasses a range of services designed to facilitate a smooth transition for employees working abroad. Key aspects include:

  • Assistance with visa and work permit applications, renewals, and compliance.
  • Support for relocation, including housing, schooling, and local registration.
  • Guidance on local tax regulations and filings.
  • Coordination of locally compliant benefits and insurance coverage.
  • Ongoing support for any changes or issues that may arise during the expatriate assignment.

What happens after onboarding?

After onboarding, Acvian maintains an ongoing relationship with your business and employees, ensuring smooth payroll processing, managing tax and regulatory compliance, handling benefits administration, and providing support for any changes or issues that may arise in the employment lifecycle. This allows you to focus on your core business operations while Acvian manages your international workforce.

How many days will it take for our personnel to be onboarded?

The onboarding process typically takes between 2 to 4 weeks, depending on the country and complexity of the employee’s situation. However, Acvian strives to expedite this process, ensuring a smooth and efficient transition for your personnel. See our story of the urgent employment project.

Does Acvian provide in-country support for employee inquiries or assistance requests?

Yes, Acvian provides in-country or regional support for employee inquiries and assistance requests. We have dedicated managers in the countries where we support your employees, ensuring prompt and knowledgeable assistance tailored to local regulations and practices.

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