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Albania
Your guide to the employment landscape, working customs and local labor laws in Albania
(The data below is for reference only. You may refer to the official government websites or contact us for updates.)
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Albania is a developing country whose recent transition from a centralized economy to a free-market economy has resulted in the country’s steady growth since 2014. The country currently ranks as the 50th freest economy in the world due to the shift. Tourism and Agriculture are the main drivers of its economic success and have provided employment for most citizens.
Major economic Cities
Tirana, Durrës, and Fier
Skills in demand
Call center operators, Industrial sewing machine operators, Waiters, and counter jobs, and Constructing technical

Salary Data
Below are monthly salary ranges for jobs positions in Albania:
Employing in Albania
Albania is filled with highly skilled candidates that become a huge asset for any business. But before taking in talented employees from the country, employers must have known all about Albanian labor laws and regulations. The following sections offer a brief overview of the rules
Public and Provincial Holidays
Leave Information
Albanian employment contracts may be verbal or written. There is no statutory requirement on what language to use for the contract.
The probation period for Albanian employees is up to 3 months.
A 13th-month pay is not compulsory in Albania.
Albania offers a range of benefits for their employees. Below are some of them:
Payroll in Albania is released either every month or every two weeks (if the salary is calculated hourly, daily, or weekly).
The minimum wage in Albania is at ALL 40,000.00 per month.
Overtime work is discouraged in Albania. However, if necessary, employees are compensated with 125% of their hourly rate for extra work. Employees who work overtime during a rest day or public holiday are compensated a rest day or 150% of their salary.
| Contribution Type | Rate |
| Social Insurance | 16.7% |
| Health Insurance | 1.7% |
| Contribution Type | Rate |
| Social Insurance | 9.5% |
| Health Insurance | 1.7% |
| Annual tax base (ALL) | PIT rate (%) |
| 0 to 2,040,000 | 13 |
| Over 2,040,000 | 23 |
Net taxable income (taxable profit) from business for commercial individuals and the self-employed is taxed at the following progressive rates:
| Annual tax base (ALL) | PIT rate (%) |
| 0 to 14 million | *15 |
| Over 14 million | 23 |
The standard VAT rate is 20%.
Employment contracts in Albania can either be in a definite or indefinite period, and the termination process and notice period for each classification vary. The termination will only occur for a definite employment duration when the contract expires. If the employee works beyond the end date, their contract shall be considered indefinite. The contract may be terminated for indefinite employment duration by either the employer or employee. A notice must be given stating the reason for termination.
The notice period for Albanian employees is generally one month.
A Severance Allowance may be given to an employee if the termination of the contract is immediate and is due to redundancy. Moreover, severance pay in the form of a seniority-related award may be given to an employee upon termination if they have served for three years or more. The pay will be equivalent to 15 days of work for each year completed.
Expats seeking employment in Albania must legally secure a work permit to work in the country. They must also apply for a residence permit if they are required to stay more than 90 days in the country during 180 days. The following are types of residence permits that foreigners may apply for based on the duration of their stay:
Employee Contract 
Albanian employment contracts may be verbal or written. There is no statutory requirement on what language to use for the contract.
The probation period for Albanian employees is up to 3 months.
A 13th-month pay is not compulsory in Albania.
Albania offers a range of benefits for their employees. Below are some of them:
Leave Policy 
Public and Provincial Holidays
Leave Information
Payroll 
Payroll in Albania is released either every month or every two weeks (if the salary is calculated hourly, daily, or weekly).
The minimum wage in Albania is at ALL 40,000.00 per month.
Overtime work is discouraged in Albania. However, if necessary, employees are compensated with 125% of their hourly rate for extra work. Employees who work overtime during a rest day or public holiday are compensated a rest day or 150% of their salary.
Taxes 
| Contribution Type | Rate |
| Social Insurance | 16.7% |
| Health Insurance | 1.7% |
| Contribution Type | Rate |
| Social Insurance | 9.5% |
| Health Insurance | 1.7% |
| Annual tax base (ALL) | PIT rate (%) |
| 0 to 2,040,000 | 13 |
| Over 2,040,000 | 23 |
Net taxable income (taxable profit) from business for commercial individuals and the self-employed is taxed at the following progressive rates:
| Annual tax base (ALL) | PIT rate (%) |
| 0 to 14 million | *15 |
| Over 14 million | 23 |
The standard VAT rate is 20%.
Offboarding & Termination 
Employment contracts in Albania can either be in a definite or indefinite period, and the termination process and notice period for each classification vary. The termination will only occur for a definite employment duration when the contract expires. If the employee works beyond the end date, their contract shall be considered indefinite. The contract may be terminated for indefinite employment duration by either the employer or employee. A notice must be given stating the reason for termination.
The notice period for Albanian employees is generally one month.
A Severance Allowance may be given to an employee if the termination of the contract is immediate and is due to redundancy. Moreover, severance pay in the form of a seniority-related award may be given to an employee upon termination if they have served for three years or more. The pay will be equivalent to 15 days of work for each year completed.
Visa and Immigration 
Expats seeking employment in Albania must legally secure a work permit to work in the country. They must also apply for a residence permit if they are required to stay more than 90 days in the country during 180 days. The following are types of residence permits that foreigners may apply for based on the duration of their stay:
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