Albania
EOR Rate
$399
/month per employee

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Country Snapshot

Currency

ALL

Timezone

UTC +1

Minimum Wage

50K ALL/Month

Payroll Frequency

Monthly

Employment Type

Full-time

Albania is a Southeast European country located in the Balkans, known for its strategic position along the Adriatic and Ionian Seas. It is an emerging market with ongoing economic reforms and increasing foreign investment.

General Information

CapitalTirana
Population2,771,508
TimezoneUTC +1
Official LanguageAlbanian

Employment Laws

Working Hours40 hours/week
Minimum Wage50K ALL/Month
Probation PeriodUp to 3 months
Notice Period2–8 weeks

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Leave Entitlements

Annual Leave20 days
Public Holidays12 - 14 days
Sick LeavePaid with medical certificate
Maternity Leave12 months (partially paid)
Paternity Leave3 days

Social Security

Employer Rate15%
Employee Rate11.2%

Social security contributions in Albania are administered by the Institute of Social Insurance (ISSH) and are mandatory for both employers and employees. Contributions are calculated on gross salary within statutory minimum and maximum thresholds and must be reported and paid monthly. Failure to comply may result in penalties, interest charges, and potential labor or tax inspections.

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Taxation

Corporate Tax5% - 15%

Albania applies a reduced Corporate Income Tax (CIT) rate for qualifying small businesses (SMEs) below the annual revenue threshold. Once the statutory turnover threshold is exceeded, the standard CIT rate applies to taxable profits. Businesses must monitor revenue levels carefully, as exceeding the threshold triggers full corporate tax and standard compliance obligations.

Termination Rules

Notice required; severance based on tenure

Bonus Requirements:

No mandatory bonus

Additional Information

Under an EOR arrangement in Albania, employment must be supported by locally compliant written contracts registered in line with Labor Code requirements. Payroll processing involves mandatory income tax withholding and social security contributions, which must be reported accurately to local authorities. Termination procedures are regulated and require valid grounds, notice periods, and proper documentation to avoid disputes. While labor costs are relatively moderate, administrative accuracy is critical due to increasing regulatory oversight. An EOR mitigates compliance risk by managing filings, payroll calculations, and statutory employment obligations locally.

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