Employer of Record in Albania

How an Employer of Record works in Albania

An Employer of Record (EOR) in Albania provides foreign companies with a quick and compliant alternative way to hire in the country without needing to set up a local entity. The EOR provider - like Rivermate - undertakes the role of a legal employer using its existing entity. As such, it deals with onboarding, ongoing compliance, and termination while the foreign employer manages the employee’s day-to-day work.

Rivermate provides EOR services in Albania with the help of our local expert team and their deep country-specific knowledge. Additionally, with the help of local providers, Rivermate can offer additional supplementary benefits to workers, beyond the standard scope of employment.

The model is designed to allow foreign companies to retain operational control over an employee's work while bypassing the hassle, cost, and risk associated with establishing a local entity.

Albania labor market: At a glance

The hiring market
Greatest hiring activity:	Tirana (mostly for services), Durrës (industry), Berat (agriculture).
Hiring timelines:	Locals: 1 - 2 weeks Foreign employees: 1 - 3 months
In-demand sectors:	IT, telecommunications, banking, tourism, and construction
Sectors with skills shortages:	Skilled trades, technical roles, manufacturing

The salary market
Employer social security contributions:	Social Insurance Institute: 16.7% for gross salaries up to ALL 186,416 / month, drops above that amount (made up of 15% applicable up to the threshold + 1.7% applicable on whole gross salary)
Monthly national minimum wage:	ALL 50,000
Average gross monthly salary:	ALL 92,150
Personal income tax rates:	Two personal income tax brackets exist in Albania, applicable marginally on annual taxable income, withheld by the employer through monthly payroll: ALL 0 - 2,040,000:13% Above ALL 2,040,000: 23% Monthly personal deductions apply and reduce the taxable base. Monthly employment income up to ALL 50,000 is exempt from personal tax by virtue of applying a monthly personal deduction of ALL 50,000. Income between ALL 50,000 and ALL 60,000 has a ALL 35,000 deduction; income above ALL 60,000 has a ALL 30,000 deduction. Deductions are only applicable once a month and through one employer. Additional annual deductions (dependants, eligible expenses) may be claimed through annual returns by individuals.

What will it cost to hire in Albania?

Minimum wage

As of 1 January 2026, the minimum gross monthly wage in Albania is set at ALL 50,000 for full-time employment. Data from the Institute for Statistics shows that 25.8% of employees in Albania earn the minimum wage.

Market salaries

Based on our local team’s accumulated market knowledge, some indicative salary ranges for select positions can be observed but should be used only for illustrative purposes (all figures gross monthly):

Entry level IT Specialist: ALL 120,000 - 180,000
Senior level IT Specialist: ALL 300,000 - 500,000+
Mid-level Marketing Manager: ALL 140,000 - 250,000
Senior Financial Accountant: ALL 200,000 - 350,000+
Mid-level Customer Service Rep: ALL 90,000 - 140,000
Entry-level worker in manufacturing: ALL 50,000 - 80,000

According to Q2 2026 data published by the Institute for Statistics of Albania, the average monthly gross salary was ALL 92,150, representing a 9.8% growth year-on-year. Certain economic activities show much higher sector averages than the national average, including Finance and Insurance (ALL 187,267) and IT (ALL 143,528). The same report highlights that the highest growth sector in terms of average wage is the construction sector. 17.1% of the employees in Albania earn above ALL 120,000.

Employer contributions

Two mandatory employer contributions exist in Albania: 15% of gross salary paid for social insurance and 1.7% for health insurance. However, the two contributions apply to the same amount (gross salary) up to a point; the social insurance element is capped at ALL 186,416 (a figure which changes annually; up to 2025 it was ALL 176,416) while the health insurance is calculated on the full gross salary, with no cap applicable. The threshold for social insurance is linked to the national wage, so when the minimum wage changes, the cap does as well. For employees earning up to ALL 186,416 gross/month a safe employer contribution estimate is 16.7% of the gross salary, while for higher-earners the total contribution percentage drops because of the social insurance cap.

The employee's share is 9.5% for social insurance and 1.7% for health insurance and is withheld by the employer and paid to the state.

Maximum working hours and overtime premiums

The standard workweek in Albania is 40 hours. Any hours worked beyond that limit are considered overtime and paid at 125% of the regular rate if performed on a regular working day (or qualifying compensatory leave can also be granted). Overtime on a weekly rest day or public holiday attracts a 50% premium (or 50% longer compensatory leave). Regular work (not overtime) that must be performed during a Sunday or a public holiday must also be paid with a 25% premium and in the case of a public holiday also requires paid leave equal to the hours worked. Night work attracts a premium of at least 20% (for periods 19:00-22:00) and at least 50% (between 22:00 and 06:00).
Overtime hours cannot exceed an annual limit of 200 hours/year.

Paid leave types

Type	Allowed duration	Payment
Sick leave	Six months	Days 1-14 by employer Days 15+ by ISSH (70% - 80%, depending on tenure)
Paid annual leave	At least 22 working days per year	100% employer
Public holidays	14 days per year	100% employer
Maternity leave	365 days (390 for multiple births)	ISSH, subject to eligibility. Prenatal period plus 150 calendar days after birth paid with 80%, remaining period paid with 50%
Paternity leave	3 days	100% employer
Marriage leave	5 days	100% employer
Bereavement leave	Up to 5 days	100% employer

Additional benefits

While not mandatory, some additional benefits common in Albania include annual bonuses, meal allowances, transport allowances and private health insurance.

Calculate employment costs

What to expect when hiring in Albania

With a young and educated workforce, Albania provides a solid talent supply, particularly for sectors like IT, economics and law. Fluent in English and often fluent in Italian as well, the local workforce is increasingly seeking professional development opportunities in addition to job security. Both salaries and other benefits remain a key factor and upward pressure on salaries has been increasing in recent years.

According to the National Employment Strategy Progress Report by the Ministry of Economy, the services and agriculture sectors show the largest share of employment in Albania. Recruitment demand has grown in accommodation and food services, wholesale and retail trade, construction, manufacturing, telecommunications and professional services.

Market condition	Current reality
Hiring momentum	🟢 High. Strong demand in business services, construction, manufacturing, trade and hospitality.
Talent availability	🟡 Moderate. Large labor force but some skills mismatches can be observed. Emigration also poses a challenge.
Specialist talent	🟡 Moderate. Experienced professionals and specialists may be difficult to recruit and retain.
Employer cost	🟡 Moderate. Employer contributions are 16.7% of gross salary
Salary pressure	🔴 High. Wages are rising amid competition for skilled workers. Particularly high pressure in IT and technical roles.
Candidate expectations	🔴 Rising. Candidates prioritize higher pay, career development and international work opportunities.

How to hire foreigners in Albania

Multiple routes exist for compliant hiring of foreigners in Albania who may need work and residence authorization before taking up employment.

Unique Permit (combined work and residence): a recently introduced type of permit, the main route. Combines the work and residence permits into one application. Granted for up to one year, with renewals possible. The application can be submitted online by either the foreigner or the employer, and either from their home country or from Albania. Supporting documents include the employment contract (or job offer) and evidence or professional qualifications or experience. The Ministry of Interior advises that a 1-3 month processing timeline should be taken into account.
Single Permit for Highly Skilled Workers ( called “Blue Card AL): Applicable for highly-skilled employment. This visa requires prior authorization from the National Agency for Employment and Skills. It is granted for two years and can be renewed for an additional three years.

Additional permits may be available for seasonal workers. An additional “single permit for digital mobile workers” route is available to eligible foreigners working remotely for an employer based outside Albania. The route is intended for remote work for foreign employers, not regular employment within Albania, however.

Compliance risks employers should be careful about

Employment contracts: language and duration

Employment contracts in Albania must be concluded in writing in the local language. The Albanian labor laws do not impose a limit on the number of successive fixed-term contract renewals. However, when successive fixed-term contracts total more than 36 months, not renewing the final fixed-term contract is considered termination of an indefinite contract.

Probation periods: maximum three months

The maximum probationary period in Albania is set at three months. The probation can be reduced or removed by virtue of the employment contract. Terminating during the probationary period requires a 5-day notice by the terminating party. Ordinary dismissal procedures and protections against unjustified dismissal do not apply during the probationary period.

Notice periods, terminations and severance pay

A notification of at least 72 hours must be given to an employee ahead of a meeting where they will be given the opportunity to respond to an intent of dismissal. At least 48 hours and up to one week after the meeting, a written notification of a termination must be given. If this procedure is not followed, it may trigger two months’ salary in compensation.

Notice periods for indefinite contracts (after probation) in Albania vary depending on tenure:

Length of service	Notice period required
Up to 6 months	2 weeks
6 months - 2 years	1 month
2 - 5 years	2 months
More than 5 years	3 months

At termination, the employee must be deregistered through the E-SIG system. The final pay (including any accrued but unused leave) must be paid at separation.

Benefits of hiring employees through an EOR in Albania

If you are considering hiring in Albania or have already found your ideal candidate, you may be considering setting up your own local legal entity in the country. However, despite being cost-effective, the process may involve navigating bureaucratic procedures, tax registrations and managing complex statutory compliance. An EOR, like Rivermate, provides an alternative way to hire - by employing individuals through an existing local infrastructure. With Rivermate managing all employment aspects, foreign companies can focus on their core business.

Ready to hire in Albania?

Found the person you want to hire in Albania? Talk to an Albania Hiring Expert about your hiring needs today.

Sources:
Personal Income Tax Act
Minimum wage 2026
Amended Albanian Labor Code (2024)
Labor Code 1995
EPLex Albania
PwC Tax Summary Albania
INSTAT Wage Statistics Q2 2026
National Employment and Skills Strategy 2023-2030
UNDP Skills Needs Analysis
Unique Work/Residence Permit (Ministry of Interior)
Labor Inspectorate: General Employer obligations
ISSH: Sick leave benefit