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* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.
Albania offers a skilled and educated workforce, particularly in sectors such as IT, tourism, and energy, making it an appealing destination for businesses seeking talent.
The country provides competitive labor costs and a favorable tax environment, offering cost-effective opportunities for foreign investors.
Albania's strategic location in Southeast Europe provides access to regional markets and trade routes, enhancing business prospects and opportunities for expansion.
Recent economic reforms and efforts to improve infrastructure demonstrate Albania's commitment to attracting foreign investment, making it an advantageous choice for companies looking to establish or expand their operations.
Contracts in Albania must be written in Albanian or in a mutually understood language. An official translation and notarized copy are necessary if the original is not in Albanian. Contracts must include:
In fixed-term contracts, a probationary period not exceeding three months should be stipulated in writing. For indefinite contracts, the initial three months constitute a probationary period, unless otherwise specified in a contract for the same work.
Working hours are capped at eight hours per day and 40 hours per week in Albania. Employees must have a daily break of at least 11 consecutive hours, or within two consecutive days if necessary. Additionally, a weekly break of at least 36 hours is mandated, with 24 hours uninterrupted.
Each hour worked beyond the daily eight-hour or weekly 40-hour limit is considered overtime in Albania. Overtime pay varies based on the day it occurs:
Albania's minimum wage stands at 40,000 ALL. Additionally, specific wage rates may vary for different sectors or regions within the country.
In Albania, there is no mandatory provision for a 13th salary. Its provision depends on individual company policies or collective agreements.
Individual income tax ranges from 0% to 23%. Income tax is calculated according to progressive rates, detailed below.
In Albania, pensions are managed by the State Social Insurance Institute. Workers contribute to the pension fund during their careers and receive benefits upon retirement based on their contributions and other factors.
The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Albania tailored to your needs.
In Albania, employment contracts can be terminated with or without cause under the Labor Code. Immediate termination is allowed for reasons such as gross misconduct, criminal behavior, serious contract breaches, or policy violations. The termination process includes:
In Albania, the Labor Code mandates minimum notice periods for terminating indefinite term contracts, which vary based on the length of employment and cannot be shortened by agreement:
Severance pay in case of termination for reasons not attributable to the employee, such as redundancy or employer bankruptcy, is structured as follows:
If an employee has received an annual bonus for 3 consecutive years, this bonus must be included in the severance as a mandatory seniority bonus.
There are 14 public holidays that employees can take off work.
Foreign employees in Albania with a local contract must pay Social and Health Contributions (SHCs) like local workers, granting them benefits such as worker's compensation, life insurance, healthcare, pension, and unemployment. Those with a foreign contract can choose between the Albanian SHC scheme or their home country's, depending on which is more favorable, with some exemptions.
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It's important to note, visa support can be complicated and each country has different requirements and legislation. As of August 2024, non-Singapore entities that want to employ an individual in Singapore who is not a Singapore national or permanent resident may no longer use an Employer of Record (EOR) to sponsor that individual for a work permit. Contact our experts for help on how to navigate global employment in Singapore.
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