Albania Employment Guide
Albania Employment Guide
Albania is on Europe’s Balkan Peninsula, bordering North Macedonia (east), Greece (south), Adriatic Sea (west) and Montenegro (north), with ~2.4 million people (declining due to low birth rates and youth outflow). Its economy is service-led (50.3%), followed by industry (28.3%) and agriculture (21.4%); key industries include textiles and petroleum. Labor laws protect wages (avg. €850/month pre-tax), hours and leave. Unemployment is ~8.8% (youth:19.1%). Reforms and foreign investment boost growth, but labor shortage is a challenge.
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Currency
Albanian Lek (ALL)
Capital
Tirana
Official language
Albanian
Salary Cycle
Monthly
Our Employment Guide in Albania
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Maternity Leave Regulations in Albania
Employees who have contributed to social insurance for at least 12 months are entitled to 365 calendar days of paid maternity leave. A minimum of 35 days must be taken before childbirth, while at least 63 days are reserved for the postnatal period.
During the first 150 days (combining pre and postnatal periods), eligible employees receive 80% of their average daily wage. For the remaining duration of the leave, the compensation decreases to 50% of the previous year's average daily wage. These payments are administered directly by the Social Insurance Institute.
It's important to note that extensions to this leave period are not permitted under current legislation.
Paternity and Parental Leave Provisions
Fathers or cohabiting partners are granted 3 days of paid leave following childbirth, with compensation provided by the employer.
For employees with 12 months of social insurance contributions whose partner does not claim maternity benefits, an extended 330-day parental leave is available. This leave commences after the mother's mandatory 63-day postnatal period. The compensation structure mirrors maternity benefits: 80% of average daily wage until the 150th day post-birth, transitioning to 50% thereafter, with payments processed through social insurance.
Similar to maternity provisions, this leave cannot be extended beyond the stipulated period.
Sick Leave Compensation Framework
Albanian labor law does not specify a maximum duration for paid sick leave. The compensation structure varies based on leave duration and employee insurance history:
Duration | Compensation | Payer | Conditions |
---|---|---|---|
0-14 days | 80% of salary | Employer | Applies to all employees |
Beyond 14 days | 70% of salary | Health Insurance | Less than 10 years of contributions |
Beyond 14 days | 80% of salary | Health Insurance | More than 10 years of contributions |
Practical Considerations for International Employers
Companies like SailGlobal often encounter challenges when implementing these policies for international teams. For instance, an employee with 8 years of insurance contributions would receive 70% compensation from health insurance after the initial 14-day employer-paid period. This tiered system rewards long-term contributors while ensuring basic protection for all workers.
Understanding these nuances is crucial for HR professionals managing cross-border teams. The Albanian model demonstrates a balanced approach to worker protection while maintaining economic sustainability through shared employer-state responsibility.
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