Quick facts

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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.

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Employment Contracts

In Albania, various types of contracts are available:

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• 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.

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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.

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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:

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• 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.

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Overtime is capped at 200 hours per year.

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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.

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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.

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Wages and Salary Payment

Wages are typically paid monthly:

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

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

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Public Holidays

Albania observes 15 public holidays, including:

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

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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.

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Employer Taxes

Employers contribute:

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

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

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Employee Taxes

Employees contribute:

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

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Income tax rates are:

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• 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.

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Notice Period

Notice periods depend on the length of service:

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• 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.

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Termination and Severance Pay

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

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• 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.