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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Albania's Minimum Wage Requirements

Employers in Albania must adhere to a statutory minimum wage of 40,000 Albanian Lek per month for full-time employees. This baseline compensation is mandatory across all sectors.

Personal Income Tax Structure

Albania employs a progressive personal income tax system, with rates ranging from 0% to 23%. The applicable rate depends on the employee's annual taxable income, ensuring a fair contribution based on earnings.

Annual Taxable Income (Lek)Applicable Tax Rate
0 - 40,0000%
40,001 - 200,00013%
200,001 and above23%

Employer Social Security Contributions

Beyond gross salary, employers are responsible for social security contributions totaling approximately 16.7% of the employee's wage. These mandatory contributions are capped at a maximum salary base of 176,417 Lek.

  • Social Insurance Contribution: 15.0%
  • Health Insurance Contribution: 1.7%

For precise calculations tailored to your specific workforce, SailGlobal offers detailed cost breakdowns to ensure full compliance.

Standard Working Hours and Overtime Regulations

The standard workweek in Albania is 40 hours, typically structured as eight hours per day from Monday to Friday.

Overtime compensation is legally required for work beyond these standard hours. Employees may work up to 48 hours of overtime per week, with an annual cap of 200 hours. Compensation for overtime follows these guidelines:

  • Overtime on regular workdays: 125% of standard pay
  • Overtime on weekends or public holidays: 150% of standard pay
  • Alternatively, employees may receive compensatory time off in lieu of additional pay

Understanding these regulations is crucial for multinational companies like those partnering with SailGlobal to maintain compliant and ethical operations in Albania.

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