Albania offers one of Europe’s most cost-effective talent pools — the minimum wage is just ALL 50,000/month (~€525) and employer social security contributions total 16.7%. With a growing multilingual workforce in tech, finance, and engineering, and a government actively aligning labor laws with EU standards, Albania is attracting companies that want quality talent without Western European payroll costs.

This guide covers how an Albania EOR works, what it costs (from $199/month with Remote People), employment contracts, tax brackets, social security rates, leave entitlements, and termination rules — everything you need to hire compliantly in Albania in 2026.

How to Hire Employees in Albania

Hiring in Albania offers exciting opportunities, but you need the right setup to make it work smoothly. Whether you’re building a small remote team or entering the region at scale, your hiring method determines how fast and compliant your expansion will be.

Here are three common ways companies hire in Albania:

Setting Up a Local Entity

Setting up a legal entity (like a subsidiary) gives you full control over hiring and HR. However, it involves registration with tax and labor authorities, plus ongoing reporting and payroll management.

Working with an Employer of Record (EOR)

An EOR serves as the legal employer on paper, handling employment contracts, payroll, tax withholding, and benefits administration. You manage your team’s day-to-day, while the EOR keeps everything compliant behind the scenes.

Learn more about Employer of Record services

Hiring Independent Contractors

This option works well for short-term or project-based needs, but it comes with risks. Albania has clear definitions of employment, and misclassifying a worker could trigger audits or penalties.

Learn about hiring contractors in Albania

Start hiring with an Albania EOR

Let us handle the complexities of hiring, compliance, and payroll in Albania while you focus on growing your team.

  • Hire employees in Albania with an Albania EOR
  • No local entity is needed
  • Pricing starts at USD 199 per employee
  • Remote People can also help you find the best talent in Albania
Get Your Customized Proposal

Quick Facts about Albania

Currency

Albanian Lek (ALL)

Languages

Albanian (official), English, Italian, German widely spoken

Capital

Tirana

Time Zone

CET (UTC+1)

GDP Growth

~3.5% (2025)

Minimum Wage

ALL 50,000/mo (~€525) as of Jan 2026

Employer Social Security

16.7%

Employee Social Security

11.2%

Income Tax

0%–23% progressive

Standard Workweek

40 hours/week

Annual Leave

22 working days

Probation Period

Up to 3 months

Notice Period

1–3 months depending on tenure

13th Month Pay

Not Mandatory

Albania EOR vs Albania Entity

Deciding between using an Employer of Record (EOR) or setting up a local entity in Albania comes down to cost, speed, and complexity. An EOR is often the better choice for companies looking to keep overhead low and avoid the administrative burden of establishing a physical presence. You won’t need to rent office space, set up infrastructure, or navigate local registration requirements.

On top of that, EORs handle payroll and tax compliance, helping you stay on the right side of Albanian regulations and avoid costly penalties. It’s a faster, leaner way to hire, especially if you’re testing the market or scaling gradually.

Factor EOR Local Entity (Subsidiary)
Setup Time 48 hours 4–8 weeks
Setup Cost $199/mo $5,000–$15,000+
Local Office Required No Yes
Payroll & Tax Compliance Handled by EOR You manage
Legal Liability EOR assumes Your company
Best For Testing market, <20 employees Long-term, 20+ employees
Minimum Commitment Month-to-month Multi-year

For a deeper breakdown of your expansion options, explore our EOR vs Legal Entity: full comparison to see how the two models differ

Using an Employer of Record in Albania

Hiring in a new country comes with layers of legal, tax, and HR obligations, and Albania is no exception. An Employer of Record (EOR) takes on those responsibilities so you don’t have to build a local entity from scratch.

Here’s what an EOR does for you in Albania:

  • Legally employs your team on your behalf
  • Drafts compliant employment contracts in Albanian
  • Manages monthly payroll, tax filings, and social contributions
  • Ensures accurate enrollment in statutory benefits
  • Tracks time off, sick days, and other entitlements
  • Keeps you updated with labor law changes

Working with an EOR is the fastest, most cost-effective way to hire in Albania while staying fully compliant with local employment laws. It allows you to scale quickly, without sacrificing peace of mind.

Things to Know About Hiring in Albania

Before diving into the Albanian talent market, it helps to understand the local employment environment. Albania offers a young, eager workforce, affordable wages, and a government actively encouraging foreign investment. But like any market, it comes with its own unique rhythms and requirements.

Here are a few things to keep in mind:

  • Workforce Strengths: Albania has a growing pool of multilingual professionals, especially in sectors like tech, customer support, finance, and engineering. English, Italian, and German are widely spoken in business environments.
  • Cost Advantage: Labor costs in Albania are among the lowest in Europe, making it a strategic option for businesses seeking skilled talent without the high payroll burden.
  • Flexible Labor Laws: While Albania has protections in place for workers, the legal framework is generally employer-friendly compared to neighboring countries.
  • Holiday Culture: Employees in Albania value their time off, especially national holidays and summer vacation. Many businesses experience a slowdown in August.
  • Ongoing Reforms: Albania continues to align its labor and tax systems with EU standards, which means regulations may evolve. Staying up to date is key, especially for foreign employers.

Whether you’re hiring one remote developer or building an entire support team, understanding these local nuances can help your company thrive in Albania.

How Much Does an Albania EOR Cost?

Albania EOR pricing depends on the provider and service model. Remote People offers Albania EOR from $199/month per employee — the most competitive rate on the market — with no setup fee and recruitment included.

The EOR may also charge for additional services such as benefits and tax management if these services are not already included in the monthly service fee.

The total cost of an EOR in Albania will depend on the complexity of the service and the number of employees on the company’s payroll.

Provider Monthly Cost Setup Fee Includes Recruitment Contract Type
Remote People $199/mo None Yes Direct employment
Deel $599/mo None No Direct employment
Remote.com $599/mo None No Direct employment
Papaya Global $650/mo $150 No Direct employment

Looking to better understand Employer of Record pricing? Compare EOR costs across 60+ providers.

Employment and Labor Laws in Albania

Hiring in Albania means getting familiar with a legal system that strikes a balance between protecting workers and supporting business growth. The country’s labor laws are governed by the Albanian Labor Code, which outlines everything from contracts and wages to leave and termination. Understanding the basics helps you build a team that’s not only productive but fully compliant.

Employment Contracts

Albanian employment contracts must be in writing. Employment contracts must be written in the Albanian language. The main types of written employment contracts include indefinite-term, fixed-term (temporary), part-time, and distance-work contracts for remote employees.

Employment contracts must clearly specify the job description, working hours, notice periods, dismissal procedures, and details of paid annual leave. Social security contributions must be referenced in an Albanian employment contract. Employees and employers in Albania must contribute to the social security system. 

Working Hours and Paid Holidays

The standard working hours in Albania are 40 hours a week or eight hours a day. The typical workweek spans five days, from Monday to Friday. Workdays of six hours or more entitle Albanian employees to 30-minute work breaks. The maximum working hours for the week, including overtime, are 48 hours. 

Albania observes approximately 16 national public holidays per year (the exact number varies annually due to moveable religious holidays such as Eid al-Fitr, Eid al-Adha, Catholic Easter, and Orthodox Easter), and if these fall on a weekend, a substitute day off is often provided. Common holidays include Independence Day, Liberation Day, and religious celebrations.

Social Security Contributions

The Law of the Republic of Albania on Social Security requires that employers make social security and health insurance contributions for their workforce. Social security is managed by the Social Security Institute (SSI) of Albania, or the Instituti i Sigurimeve Shoqërore, ISS. Albania’s social security fund covers pensions, unemployment, disability, sickness benefits, and maternity leave.

Both employers and employees make monthly contributions to the fund that are deducted from the employees’ gross salaries. The employer is responsible for calculating and remitting social security contributions to the SSI.

Contributions are 27.9% of gross monthly salary and are divided between the employer and employee as follows:

ContributorTotal RateBreakdown
Employee11.2%9.5% social security; 1.7% health insurance
Employer16.7%15.0% social insurance; 1.7% health insurance

In Albania, health insurance forms part of the social security fund. The employer and employee contribute 1.7% each to health insurance. Health insurance consists of hospital care, primary healthcare, and the reimbursement of certain medications. 

Overtime

Overtime is compensated at a rate of 125% of the standard salary. Overtime performed on the weekend or public holidays is paid at 150% of the regular salary or wage. In Albania, overtime is capped at 200 hours for the year. Legally, employees cannot exceed the 48-hour workweek, which includes overtime.

Probation Periods

The standard probation period in Albania is three months. It must be agreed upon by the employer and employee and included in the employment contract. The probation period cannot legally exceed three months. It can be reduced or waived in writing in the employment contract or by a collective agreement. 

Either the employer or the employee can terminate the probation period in Albania, but must issue a minimum of five days’ notice. Just cause is not required by either party when terminating the probation period. The inclusion of a probation period in the employment contract is not mandatory. A new employee’s first three months of employment are automatically treated as a probation period, unless otherwise stated in the employment contract.

Payroll and Employment Taxes in Albania

Minimum Wage

As of January 1, 2026, Albania’s minimum monthly wage was increased to ALL 50,000 (approximately €525), pursuant to Council of Ministers Decision No. 776 of December 19, 2025. The previous rate was ALL 40,000 (~€408), which had been in effect since March 2023.. It is set by the Council of Ministers (Këshilli i Ministrave). 

The minimum wage in Albania is mandated for full-time and part-time employees across all sectors to protect their rights. Violating the minimum wage law will result in a fine of 30 times the minimum wage.

Income Taxes

Income tax does not exceed 23%. Albania’s income tax is progressive. Income tax is calculated according to an employee’s monthly earnings in Albanian lek (ALL) as follows: 

Income Range (ALL)Tax Rate
Up to 50,0000% (tax-free)
50,001 – 250,00013%
Over 250,00023%

Albania’s tax year runs from January 1st to December 31st. Employees file income tax returns by 31st March. Employers must withhold tax from employee salaries for remittance to the Albanian Tax Directorate. Furthermore, employers deduct social security contributions from employees’ gross salaries. 

Employers must submit monthly payroll declarations and pay all withholding taxes (PIT + social/health contributions) electronically by the 20th of the following month via the Albanian e-filing portal. Late submissions incur penalties. Remote People handles all monthly payroll filings for Albania EOR clients.

Bonus Payments

13th-month pay is not mandatory as per Albania’s labor law. Employers can include it in the employment contract as an additional benefit.

Work Permits and Visas in Albania

Working in Albania as a foreign national requires obtaining a work permit from the General Directorate of Work Permits and the National Labor Service (part of the Ministry of Labour, Social Welfare, and Youth). In addition to a work permit, a Type D work visa must be acquired to stay in the country legally. Most EU/EEA citizens do not require a work permit. Albania issues work permits to address skills shortages and support economic growth. Work permits in Albania are connected to specific job roles and employers. If a foreign employee changes jobs, they would require a new work permit. 

For work permit approval, the employer must provide evidence that the job cannot be performed by an Albanian national or resident. Albania issues four types of work permits:


Type A – Employment Permit

For foreign nationals employed by an Albanian entity or EOR. Valid for 1 year, renewable twice.


Type B – Independent Economic Activity

For self-employed (B/VP, 1 year) and investors (B/I, 3 years, min. €200,000 investment).


Type C – Special Cases

For exceptional circumstances or special events, valid 1 year.


Type D – Continuous Work

For long-term employment, pathway to permanent residency.

Albania also introduced the Unique Permit (2025 reform), which combines visa, work, and residence permits into a single streamlined application. EU, US, and Western Balkans citizens can reside and work in Albania for up to 5 years under this permit.

Partnering with Remote People can assist companies with work permits and visas in Albania. Our expertise in Albanian immigration laws can support the work visa/permit application process. 

To understand the process, eligibility criteria, and required documentation, explore our guide to Albania work visa requirements.

Hiring Contractors in Albania

Businesses in Albania often seek contractors for short-term projects and flexible employment solutions. However, the employment relationship involving contractors differs significantly from that of permanent employees.

The Civil Code governs contractors in Albania who are categorized as self-employed. Contractors are responsible for calculating and paying their own taxes and social security. Employers must correctly classify employees to avoid penalties issued by the Labor Inspectorate and tax authorities. 

Workers' Compensation in Albania

The labor code in Albania regulates workers’ compensation. The scheme covers all employees who have suffered injuries or illnesses while on duty. The fund compensates employees’ medical costs and lost wages. Employees receive indemnity for permanent and temporary disability caused by work-related accidents.

Employer and employee mandatory social security contributions fund the state-run scheme. As per the labor code, employers report workplace incidents to the Labor Inspectorate and social security authorities. 

Time Off and Leave in Albania

Albania offers employees different types of mandatory leave to support employee motivation, retention, and work-life balance. 

Mandatory Leave Entitlements

Employees are entitled to a minimum of 22 working days of annual paid leave per year (amended by Law No. 91/2024, effective August 2024). Albania’s approximately 16 public holidays are a separate entitlement from annual leave. Employees are eligible for pro rata leave if they have worked for the company for less than one year. Leave is accrued monthly from the outset of their employment. 

Unused leave days will roll over into the next year, but must be used by March of the rollover year.

Paternity Leave

Fathers in Albania receive three days of fully paid paternity leave. A portion of statutory maternity leave may be transferred to fathers, provided they meet the minimum eligibility requirements.

Fathers must be employed for one year and have made social security contributions prior to the child’s birth and one month thereafter. Maternity leave is available in Albania for up to 365 days. 

Maternity Leave

Expectant mothers are given up to one year of maternity leave. This includes a minimum of 35 days before childbirth and 63 days after. Only 80% of salaries are paid for the first leave period, and 50% thereafter. Moms can return to work after 63 days of maternity leave with the option of working reduced hours until their child’s first birthday. For twins and more than one birth, the leave is extended to 390 days. 

Other Leave

Albania offers yearly parental leave, in which parents are entitled to 12 days of paid childcare leave or 15 days for children younger than three years old. Parents can take 30 days of unpaid leave for childcare. 

Annual sick leave is 14 days. An employer only covers 80% of an employee’s salary during the 14 days. The National Social Security Institute compensates employees from the 15th day of sick leave. To receive social security benefits, an employee must have been insured for three months. A medical certificate must be presented to receive sick leave. 

Bereavement leave is two days for the passing of an immediate family member. Albanian employees receive five days of marriage leave. 

Terminations and Severance in Albania

Termination Requirements

An employment contract can only be terminated for valid reasons. Employees must receive written notice based on tenure:

TenureNotice Period
During probation5 days’ notice (no cause required)
Up to 2 years of service1 month’s notice
2–5 years of service2 months’ notice
Over 5 years of service3 months’ notice

The employer must hold a meeting within 72 hours of giving notice to explain the reason for termination and hear the employee’s counterarguments. Failure to hold this meeting can result in compensation liability. Wrongful termination may result in damages of up to one year’s wages.

Severance Pay

Severance pay is mandatory for eligible employees in Albania. Employees dismissed without just cause who have at least three years of service are entitled to severance pay of at least 15 days’ salary per year of service (equivalent to 0.5 months per year).

For example, an employee with 6 years of service would receive approximately 3 months’ salary in severance.

Expand into Albania Easily with Remote People’s Employer of Record in Albania

Hiring in Albania can be a smart move for businesses looking to expand into an emerging European market with a growing, multilingual workforce. But with strict labor codes, mandatory benefits, and detailed payroll rules, navigating it all alone can slow you down.

That’s where an Employer of Record (EOR) comes in. With a local EOR partner, you can hire talent in Albania quickly, compliantly, and without the hassle of setting up a local entity. From employment contracts and tax filings to social contributions and severance, your EOR handles the heavy lifting so you can focus on building your team and growing your business.

Start hiring in Albania in 48 hours. EOR from $199/month. Compliant contracts, payroll, tax filings, and benefits — all managed by Remote People. No local entity required. Get a free customized proposal.

Frequently Asked Questions

An Albania EOR (Employer of Record) is the legal employer on paper while you manage your team's day-to-day work. The EOR handles compliant employment contracts in Albanian, monthly payroll processing, tax withholdings (0–23% PIT), social security contributions (27.9% total), statutory benefits enrollment, and labor law compliance — so you can hire in Albania without setting up a local entity.

Albania EOR pricing ranges from $199 to $650 per employee per month, depending on the provider. Remote People offers Albania EOR from $199/month with no setup fee and in-house recruitment included. Other providers like Deel start at $599/month.

No. An Employer of Record allows you to legally hire full-time employees in Albania without incorporating a local subsidiary. The EOR serves as the legal employer and handles all compliance, while you retain day-to-day management of your team.

Beyond salary, employers must contribute 16.7% of gross salary to social security and health insurance (15% social insurance + 1.7% health insurance). There is no mandatory 13th-month pay. Other costs include 22 working days of annual paid leave, up to 365 days of maternity leave (funded partly by social insurance), and severance pay for dismissals without cause (15 days' salary per year of service).

With Remote People, you can onboard an employee in Albania within 48 hours. The EOR drafts the employment contract, registers the employee with the Social Security Institute (ISS), sets up payroll, and ensures all statutory requirements are met before the employee's start date.

Yes. An EOR with a registered entity in Albania can sponsor Type A employment permits for foreign nationals. Albania recently introduced the Unique Permit (2025 reform), which combines visa, work, and residence permit applications into one streamlined process. Remote People assists with the full work permit and visa application process.