Employer of Record in Albania

An Employer of Record (EOR) is your solution to hire employees in Albania without setting up a local company. An EOR acts as the legal employer for your team on paper. This means you can build a workforce in Albania while the EOR handles all the local HR tasks like payroll, benefits, taxes, and compliance with Albanian labor laws. For companies looking to hire in Albania, an EOR provider like Rivermate can manage these responsibilities for you.

How an Employer of Record (EOR) Works in Albania

Using an EOR simplifies hiring. You find the talent, and the EOR puts them on its payroll. Here is how the process typically works:

1. You Find Your Candidate: You recruit and select the person you want to hire in Albania. You manage their day-to-day work and responsibilities.
2. The EOR Hires Legally: The EOR legally hires your chosen employee through its local Albanian entity. This saves you from the complex process of registering a business with Albania's National Business Center (https://www.qkb.gov.al/).
3. Compliant Contracts: The EOR drafts an employment contract that complies with Albania's Labor Code. This ensures all terms, from working hours to leave policies, meet legal standards.
4. Onboarding and HR: The EOR manages the employee's onboarding process. It also handles all HR administration, including payroll, tax withholdings, and social security contributions.
5. Ongoing Management: The EOR stays up-to-date with any changes in Albanian employment law to ensure you remain compliant. This includes regulations monitored by the State Labour and Social Services Inspectorate (https://inspektoriatipunes.gov.al/).

Why use an Employer of Record in Albania

Expanding your team into a new country can seem difficult. An EOR removes the biggest hurdles, letting you focus on growing your business. It provides a simple, secure, and efficient way to manage an international team.

Here are some key reasons to use an EOR in Albania:

• Enter the Market Faster: You can hire employees and start operating in days, not the months it can take to establish a legal entity.
• Reduce Risk: EORs are experts in Albanian labor law. They manage compliance risks, helping you avoid fines or legal issues related to incorrect contracts or termination procedures.
• Save Money: Setting up and maintaining a foreign subsidiary is expensive. An EOR eliminates these significant overhead costs, including legal fees and administrative salaries.
• Focus on Your Business: You can direct your energy toward your core business goals and managing your team's performance. You don't have to become an expert in Albanian payroll and tax regulations.
• Scale Your Team Easily: An EOR allows you to add or reduce your workforce in Albania with flexibility, according to your business needs.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Albania includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Albania.

Hiring in Albania is becoming a strategic move for many companies. The country's economy is growing, and it has a strong talent pool. However, navigating the local labor laws is key to successful hiring. Understanding the rules for employment contracts, working hours, and holidays will help you stay compliant and attract the best people.

Employment contracts & must-have clauses

You must provide a written employment contract in Albania. While oral agreements can exist, a written contract is the standard and helps avoid legal issues. If you don't provide a written contract within seven days of an employee starting, you could face significant fines.

Your contracts should always be in Albanian and use the local currency, the lek.

Here are the essential clauses to include:

• Identification: Full details of both your company and the employee.
• Job Details: The employee's title, a clear job description, and the primary place of work.
• Contract Duration: State whether the contract is for a fixed term or is indefinite.
• Start Date: The official start date of employment.
• Probation Period: If applicable, the length of the probation period.
• Salary and Payment: The gross salary amount and how often it will be paid.
• Working Hours: The expected daily or weekly working hours.

Probation periods

In Albania, you can include a probation period in your employment contract to see if a new hire is a good fit.

• The maximum length of a probation period is three months.
• During this time, either you or the employee can terminate the contract with a shorter notice period, typically five days.

Working hours & overtime

The standard workweek in Albania is 40 hours, usually spread over five 8-hour days.

• Anything beyond 40 hours in a week is considered overtime.
• Overtime work should be compensated at a higher rate, typically 125% of the regular wage.
• If an employee works on a public holiday or a weekend, the overtime rate increases to at least 150% of their normal pay.

Public & regional holidays

Your employees in Albania are entitled to paid time off for public holidays. Here is a list of the official public holidays for 2025:

If a public holiday falls on a weekend, the day off is typically observed on the next working day.

Hiring contractors in Albania

Hiring independent contractors in Albania can be a flexible way to access specialized skills for project-based work. Unlike employees, contractors are not covered by the Labor Code. Their work is governed by a commercial agreement, and they are responsible for their own taxes and social contributions.

This distinction is important. Misclassifying an employee as a contractor can lead to significant legal and financial penalties. An Employer of Record (EOR) can help you mitigate this risk. An EOR ensures that your workers are classified correctly and that you comply with all local labor laws. This lets you focus on your business while the EOR handles the complexities of local employment.

Navigating compensation and payroll in a new country can be complex. In Albania, the system is structured with clear rules for employers. Your responsibilities include adhering to the national minimum wage, managing payroll cycles, and handling statutory contributions for social security and health insurance. Understanding these local regulations is key to staying compliant and attracting talent.

Payroll cycles & wage structure

The standard payroll cycle in Albania is monthly. You should pay your employees by the last working day of the month. While some employees who are paid on an hourly or daily basis might be paid every two weeks, a monthly cycle is the general rule.

Employment contracts should be in writing, in Albanian, and use the local currency, the Albanian lek. These contracts must include all relevant details like salary, title, and benefits.

Overtime & minimums

The national minimum wage in Albania is 40,000 ALL per month.

A standard work week is 40 hours. Any work performed beyond these hours is considered overtime. You must compensate overtime at a rate of 125% of the regular wage. For work on weekends or public holidays, the compensation rate increases to 150% of the standard pay. Alternatively, you can offer time off instead of extra pay.

Employer taxes and contributions

As an employer in Albania, you are required to contribute to social security and health insurance for your employees. These contributions are a percentage of the employee's gross salary.

Employee taxes and deductions

Employees also contribute to social security and health insurance from their gross earnings. Income tax is progressive.

In Albania, providing competitive benefits and leave is key to attracting and retaining top talent. Understanding the local laws and customs will help you create a comprehensive package for your employees. This guide breaks down what you need to know about statutory leave, holidays, and supplemental benefits in Albania.

Statutory leave

Albania has several types of legally required leave.

• Annual Leave: Employees are entitled to a minimum of 20 paid vacation days each year.
• Sick Leave: If an employee gets sick, they can take sick leave for as long as their illness lasts. The employer pays 80% of the employee's salary for the first 14 days. After that, social insurance pays 70% of their average salary for the last 6 months.
• Maternity Leave: Female employees get 365 days of paid maternity leave. This leave can start up to 35 days before the expected birth date. Social security pays for this leave. The employee receives 80% of her earnings for the first 6 months and 50% for the last 6 months.
• Paternity Leave: Fathers are entitled to 3 days of paid paternity leave.
• Parental Leave: Employees with dependent children can take up to 12 days of paid leave to care for a child. This increases to 15 days for children under 3 years old. An additional 30 days of unpaid leave may also be taken.
• Marriage Leave: Employees get 5 paid days off when they get married.
• Bereavement Leave: In the unfortunate event of the death of an immediate family member, an employee is entitled to 2 days of leave.

Public holidays & regional holidays

Albania celebrates several national and religious holidays. If a public holiday falls on a weekend, the following workday is a day off.

Typical supplemental benefits

Beyond the standard leave, you can offer other benefits to make your offer more attractive.

How an EOR can help with setting up benefits

Setting up a benefits plan in a new country can be complex. An Employer of Record (EOR) simplifies this process for you.

An EOR already has a legal entity in Albania. This means you don't have to set one up yourself. They handle all the administrative tasks, including:

• Ensuring your benefits package complies with Albanian labor laws.
• Enrolling your employees in all mandatory social programs.
• Managing payroll and taxes related to benefits.

Using an EOR saves you time and reduces risk. You can be confident that your employees are receiving the correct benefits, and you can focus on your core business.

When your business relationship with an employee in Albania ends, you need to follow a clear process. This ensures you treat your former team member fairly and stay on the right side of the law. The process involves specific notice periods and, in some cases, severance pay. It's all about making the transition smooth and compliant.

Notice periods

When you decide to end an employment contract, you must give the employee written notice. The length of this notice period depends on how long the person has worked for you.

A contract can specify longer notice periods, but not shorter ones. If you're terminating an employee during their probation period, which can be up to three months, you only need to give five days' written notice.

Severance pay

Employees who have worked for you for at least three years are entitled to severance pay if you terminate their contract without just cause. The payment is at least 15 days' salary for each year of service. You must pay all outstanding salary, accrued and unused vacation time, and any severance pay due when the employment ends.

How Rivermate handles compliant exits

Navigating the details of Albanian labor law can be tricky. We make sure every termination is handled correctly and compassionately.

• We check the rules. We ensure that every termination complies with the required notice periods and severance pay regulations.
• We handle the paperwork. We prepare and deliver all necessary documents, including the written notice of termination.
• We calculate final payments. We figure out the final salary, payment for unused leave, and any severance pay the employee is owed.
• We keep you informed. We guide you through the process so you understand your obligations and can be sure the offboarding is managed professionally.

Navigating the visa and work permit process in Albania is straightforward when you know the rules. If you plan to work in Albania for more than three months, you will generally need a work permit and a long-stay Type D visa. The specific requirements depend on your nationality and the type of work you will be doing. The good news is that the system is well-defined, and understanding the different permit types is the first step.

Employment visas & sponsorship realities

When hiring foreign talent in Albania, you must secure the proper work and residence permits before the employee starts. An Employer of Record (EOR) can help you navigate this process, especially if you don't have a local entity in the country.

Here’s what you need to know about the practical side of sponsorship:

• Work Permit Types: Albania has several work permit categories. For hiring employees, "Type A" is the most common, covering standard employment and intra-company transfers.
• Who Needs a Permit? Non-EU/EEA nationals need a work permit to be employed in Albania.
• Exemptions: Citizens from the EU, EEA, and Schengen Area can work in Albania without a permit. United States citizens can also work without a permit and can stay for up to a year without a residence permit.
• The "Unique Permit": Albania offers a "Unique Permit" that combines the work and residence permit applications into a single process to streamline everything.
• Application Process: The employer, or your EOR partner, typically handles the application. This involves submitting documents like the employment contract, the employee's passport, and proof of qualifications to the Albanian authorities. The process usually takes around 30 to 60 days.

An EOR cannot sponsor independent contractors for work permits, as these individuals fall under a separate process. The EOR model is best suited for employees on your payroll.

Business travel compliance

For short-term business visits, the rules are simpler. If your trip is for business meetings, negotiations, or training and lasts less than 90 days, you can typically use a Type C short-stay visa. For many nationalities, visa-free travel is available for such short stays.

Key points for short-term visits:

• No Work Permit Needed: Short business visits, usually under 30 days, do not require a work permit.
• Clear Purpose: Be sure the purpose of the visit is strictly for business activities and not for carrying out paid work.
• Check Visa Requirements: Always verify if your nationality requires a visa for short stays in Albania before you travel.