HR software for Albania

Leave Policy

Maternity Leave

Maternity leave Pregnant employees who have paid social security contributions for 12 months are entitled to 365 calendar days (1 year) of paid leave. At least 35 days must be taken before the birth of the child.

At least 63 days must be taken after the birth of the child. For the period before the birth and for 150 days after the birth, the employee receives 80% of the average daily salary. For the remaining part of the leave, the employee receives 50% of the average daily salary of the last calendar year.

The Social Insurance Institution is responsible for this remuneration. The employee cannot extend the leave.

Parental Leave

The father or partner is entitled to 3 days of vacation after the birth of the child. These 3 days are paid for by the employer.

Employees who have paid social security contributions in the last 12 months and whose partner has not exercised the right to maternity leave are entitled to 330 days of paid paternity leave. Day after the birth of the child (in the first 63 days after the birth the mother is not allowed to work and the leave is considered to have been granted to the mother). The salary is 80% of the average daily salary until the 150th calendar day after the birth.

Calendar day after birth. For the period thereafter, the employee receives 50% of the average daily salary. The Social Insurance Agency is responsible for this remuneration.

The employee cannot extend the vacation.

Sick Leave

There is no maximum limit on paid sick leave in Albania. Depending on the duration, this vacation is paid at different rates and by different payers:

Period	Pay	Payer	Condition
0 – 14 days	80% of salary	Employer	All
Over 14 days	70% of salary	Health insurance provider	If the employee has insurance contributions for less than 10 years
Over 14 days	80% of salary	Health insurance provider	If the employee has insurance contributions for more than 10 years

Pay & Tax

Minimum Wage Requirements

ALL 40,000 (Monthly)

Individual Income Tax

Personal income tax ranges from 0% to 23%. Income tax is calculated at progressive rates.

Gross Annual Income (in ALL)	Tax Rate (%)
0 – 30,000	0
30,000 – 150,000	13
Above 150,000	23

Payroll Cost

Employer costs are generally estimated at 16.7% of employee salary. The maximum wage for calculating social security contributions is ALL 176,417.

Social Security – 15.0%
Health insurance contribution – 1.7%

Overtime Pay & Maximum Hours

The standard working hours are 8 hours per day and 40 hours per week. Standard working hours are Monday to Friday.

Pay for overtime is mandatory. Hours outside of standard working hours are considered overtime. An employee can work a maximum of 48 hours of overtime per week. An employee can work a maximum of 200 hours of overtime per year.

The additional hours are compensated with vacation or 125% of regular salary. Overtime worked on weekends or public holidays is paid at 150% of regular salary.

Termination

Termination Requirements

Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps for specific termination cases.

Terminations in Albania can be complicated. In Albania, employers cannot terminate at will outside of the probationary period and the termination must be for a valid reason.

Compliant terminations are:

Voluntary by the employee
By mutual agreement
Unilaterally by the employer due to:
1. Probationary period
2. Objective reasons
3. Disciplinary dismissal

Notice Period

The minimum notice period is 2 weeks and increases depending on the length of employment.

6 months employment period – 2 weeks notice period
Between 6 months and 2 years of employment – 1 month’s notice period
Between 2 and 5 years of employment – 2 months notice period
Longer than 5 years of employment – 3 months notice period

Severance for Employees

In Albania, all employees receive a severance payment for long service if the contract was terminated by the employer and the employment relationship lasted at least three years. The severance payment for length of service is at least 15 days of salary for each year of work. It is calculated on the basis of the salary existing at the end of the employment relationship.

The employer who has terminated the contract without good reason is obliged to pay the employee compensation of up to one year’s salary, which is paid in addition to the salary received by the employee during the notice period.

Statutory Time Off

Paid Time Off

Both full-time and part-time employees are entitled to 20 days of paid time off per year. PTO eligibility is calculated monthly at 1.67 days per month. The entitlement to annual leave exists from the start of employment.

Public Holidays

There are about 13 national holidays in Albania. National holidays include:

New Year celebration
Summer party
Nowruz
Catholic Easter
Orthodox Easter
May Day
Eid al-Fitr
Mother Teresa Day
Eid al-Adha
Independence Day
Liberation Da
National Youth Day
Christmas Day

Onboarding

The training takes 5 working days. A medical certificate is required before the start date.

Additional Info

Employment Contract Details

The contracts must be drawn up in Albanian and may be drawn up in more than one language. An officially translated and notarized copy is required if the original contract is not written in Albanian. They must be in writing and signed by both parties.

A contract must contain the following:

Identity of the contracting parties
Place of work
Description of the work
Date of start of work
Duration of the contract
Duration of paid vacation
Notice period for terminating the contract
Salary and date of salary payment
Normal weekly working hours
Probation period

Probation Period

Probationary periods are not mandatory. There is no minimum probation period. The maximum duration of the probationary period is 90 days (3 months).