Employment in Albania is governed by the Labour Code. A contract can be oral or written and can only be changed by agreement; any change to the detriment of the employee must be in writing.
From our guide “Doing Business and Investing in Albania”, 2024 edition. Rates and rules change, and the Fiscal Package 2026 brought further changes. Use this page as an overview and talk to us before acting on it.
Contracts
Contracts can be for a definite or indefinite term, collective, part-time, domestic or probationary. A written contract sets out the parties, place of work, a description of the work, the start date and, for fixed terms, the duration, paid leave, notice period, pay and payment date, normal weekly hours and the collective agreement in force.
Working time and leave
- A normal working week of 40 hours (50 including overtime)
- A minimum daily rest of 11 consecutive hours, and a break when the working day is longer than six hours
- An uninterrupted weekly rest of at least 24 hours
- Paid annual leave of at least four weeks
- Maternity protection, including leave from 35 days before birth to 42 days after
Ending employment
A contract ends by mutual consent, at the end of its term, for objective reasons beyond the parties’ control, by written notice from either side with a proper cause and procedure, or by disciplinary dismissal.
| Length of service | Notice period |
|---|---|
| During probation | At least five days |
| Up to two years | One month |
| Two to five years | Two months |
| More than five years | Three months |
Social and health contributions
| Contribution | Employer | Employee | Total |
|---|---|---|---|
| Social | 15.0% | 9.5% | 24.5% |
| Health | 1.7% | 1.7% | 3.4% |
| Total | 16.7% | 11.2% | 27.9% |
Social contributions are calculated on monthly salaries between ALL 40,000 and ALL 176,416; health contributions have no ceiling. An employee with two employers pays in both, up to the maximum salary. Foreign employees on a local contract contribute like local employees; those on a foreign contract can, with some exceptions, choose between the Albanian scheme and their home country’s.
Income tax on salaries is withheld by the employer each month. See Taxes in Albania for the bands.
Health and safety
Employers must provide a safe and healthy workplace, notify the Labour Inspectorate immediately of accidents at work and occupational diseases, and report the number of employees and the address of activity each year. The Inspectorate can issue warnings, fines and, where standards are not met, order work to stop.
What are employer social security contributions in Albania?
Employers pay 16.7% (15% social and 1.7% health) and employees 11.2% (9.5% social and 1.7% health). Social contributions apply to monthly salaries between ALL 40,000 and ALL 176,416.
How much annual leave are employees entitled to?
At least four weeks of paid annual leave.
Running payroll in Albania?
We calculate payroll, prepare payslips and file the monthly reports and payments to the tax authorities.
More from the guide
Starting a business in Albania
From the Doing Business in Albania guide.
Taxes in Albania
From the Doing Business in Albania guide.
Albanian tax calendar
From the Doing Business in Albania guide.
Residence and work permits
From the Doing Business in Albania guide.
Fiscalisation and e-invoicing
From the Doing Business in Albania guide.