| Monthly taxable Income from employment (ALL) | Progressive Tax Rate (%) |
|---|---|
| Up to 2,040,000 | 13 |
| Over 2,040,000 | 23 |
Local Taxes
Contributions for social insurance shall be calculated based on the employee's gross monthly salary of up to ALL 176,416, while health insurance contributions are calculated on the gross monthly salary.
| Contribution rate | |
|---|---|
| Social Insurance | 15% |
| Health Insurance | 1.7% |
| Contribution rate | |
|---|---|
| Social Insurance | 9.5% |
| Health Insurance | 1.7% |
Employers are obligated to pay their employees' salaries regularly as follows:
| Salary calculation | Pay frequency |
|---|---|
| By the hour, day or week | Semi-monthly |
| By the month | Monthly |
Minimum Wage
The minimum wage in Albania is set at ALL 40,000 per month.
There is no mandatory requirement for employers to give their employees bonuses. However, if annual bonuses are given 3 years in a row without express reservations, the employer must continue such payments in the future.
An indefinite term contract ends when a party decides, and when the relevant notice period has expired.
Employers must notify their employees in writing of their intention to dismiss them and conduct a hearing within 72 hours. During the hearing, the employer shall present their reasons and give the employee the opportunity to defend themselves.
The outcome of the dismissal hearing must be made in writing within a week. This procedure applies to all cases of dismissal, including immediate dismissal of the employee.
Parties unilaterally terminating their contract are obligated to observe the following notice period:
| Length of service | Notice period |
|---|---|
| Up to 1 year | 1 month |
| Over 1 year, up to 5 years | 2 months |
| Over 5 years | 3 months |
Notice periods can be changed by written agreement, provided that the notice period is not less than the following:
| Length of service | Notice period |
|---|---|
| Up to 6 months | 2 weeks |
| More than 6 months | 1 month |
In any case, either party to the employment relationship can terminate their contract immediately as long as there is a justified reason. All serious circumstances that do not allow the continuation of the employment relationship, in accordance with the principle of good faith, are considered justified reasons.
Employers who dismiss their employees without following the proper procedure shall pay their employees 2 months' salary.
Furthermore, employees with at least 3 years of service shall be entitled to severance equivalent to 15 days' salary for each full year of work, calculated based on the employee's salary at the end of the employment relationship. The right to this severance will be lost if the employee is dismissed with immediate effect for just cause.
The first 3 months of work are considered as a probationary period, except when the parties have concluded a contract for the performance of the same work. Probationary period may be reduced or waived by written agreement or collective agreement.
During the probationary period, each of the parties may terminate the contract by notifying the other party of its decision at least 5 days in advance.
Normal working hours in Albania are subject to a maximum of 8 hours per day and 40 hours per week.
If the circumstances necessitates the performance of additional hours, the employer may require their employees to perform overtime as necessary, taking into account the personal and family conditions of the employee.
The maximum number of overtime hours are defined in the collective agreement or employment contract, though the performance of overtime cannot be requested when the employee has performed 50 hours of work in the week.
Employees working overtime must be paid at 125% of their normal salary for each hour worked that is not compensated with rest. Alternatively, employers may agree with the employee to compensate overtime with leave that is at least 25% greater than the duration of overtime worked, given within 2 months from the day the overtime is performed.
Employees are entitled to a daily rest of at least 11 consecutive hours and a weekly rest of at least 36 hours, of which 24 hours are continuous. Weekly rest includes Sunday and is not paid.
Work performed on a weekly rest day shall be compensated with an additional pay of at least 25% or with compensatory rest received a week before or after its completion.
Overtime worked on a weekly rest day shall be compensated with time off or paid at 150% of the employee's normal salary.
As a rule, work is prohibited on public holidays. There are 14 days of public holidays in Albania for 2025.
| Holiday | Date |
|---|---|
| New Year’s Holiday | January 1–2 |
| Summer Day | March 14 |
| Nevruz Day | March 22 |
| Eid al-Fitr | March 30 |
| Catholic/Orthodox Easter | April 20 |
| Labor Day | May 1 |
| Eid al-Adha | June 6 |
| Saint Teresa Sanctification Day | September 5 |
| Alphabet Day | November 22 |
| Flag and Independence Day | November 28 |
| Liberation Day | November 29 |
| National Youth Day | December 8 |
| Christmas Day | December 25 |
Public holidays are paid, and those that fall on a weekly rest day shall be postponed to the next working day.
Work performed on public holidays shall be compensated with an additional pay of at least 25% or with compensatory rest received a week before or after its completion.
Overtime worked on public holidays shall be compensated with time off or paid at 150% of the employee's normal salary.
Employees shall be entitled to at least 4 calendar weeks of paid annual leave. When the employee has not completed a full year of work, the duration of paid annual leave shall be prorated accordingly.
Annual leave must be granted during the working year or until the end of Q1 of the following year but must never be less than a consecutive calendar week.
With considerations of the employee's wishes, the employer determines the starting date of the paid annual leave. The employee must be notified at least 30 days in advance.
When the employee cannot work due to illness, they shall be entitled to 14 days of sick leave, paid at 80% of their salary. Any remaining period of absence due to illness may be covered by social insurance.
Employees can prove their incapacity for work through medical reports issued by a doctor.
Pregnant employees are entitled to 35 days of pre-natal leave and 42 days of post-natal leave. When the pregnant employee carries more than a child, the pre-natal leave becomes 60 days.
The employee's income during maternity leave shall be determined by the law on social security. After the 42-day postpartum period, the employee can decide for themselves whether to work or benefit from social security.
| Leave | Paid/Unpaid | Duration | Note |
|---|---|---|---|
| Bereavement Leave | Paid | 5 days | For the death of an employee's spouse, ancestors or direct descendants. |
| Carer's Leave | Unpaid | 10 days | For employees with direct ancestors or descendants with serious illness. |
| Childcare Leave | Paid | 12 days per year |
For the necessary care of the employee's dependent children. Those with minor children up to 3 years of age are entitled to 15 days of leave per year when they get sick. These employees have the right to be absent for an additional period of up to 30 days per year without pay. |
| Marriage Leave | Paid | 5 days | For the employee's marriage. |
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