How much does it cost to employ someone in Albania?

On top of gross salary, the employer pays 16.7% in social and health insurance. The employee contributes another 11.2%, which is withheld through payroll along with personal income tax. Social insurance stops at a monthly ceiling, so the effective rate drops for high earners.

What changed with the Albanian minimum wage in 2026?

From 1 January 2026, the minimum wage rose to ALL 50,000 per month, up from ALL 40,000. Any contract or pay band below that level must be updated. Payroll runs in lek, so if you budget in USD or EUR, review your exchange-rate buffer too.

How does Good Balance Global hire employees in Albania?

As your Employer of Record (EOR), we become the legal employer in Albania. We register each hire with the tax authority before the start date, run monthly payroll, and file taxes and contributions by the 20th of the following month. You direct the work and the team day to day.

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Payroll and benefits guide

Albania

CapitalTirana

Fiscal Year1 January - 31 December

Date Formatdd/mm/yyyy

CurrencyALL (Albanian Lek)

Payroll FrequencyMonthly

Employer Taxes16.7%

Employee Costs11.2%

Overview

Languages: Albanian
Income tax: 0% – 23%
VAT: 20%

Contributions

Employer

15%

Social insuranceApplies up to the maximum insurable monthly wage, set each year

1.7%

Health insuranceNo ceiling

16.7%

Total employer cost

Employee

9.5%

Social insuranceApplies up to the maximum insurable monthly wage, set each year

1.7%

Health insuranceNo ceiling

11.2%

Total employee cost

Authority Payments

Authority PaymentPaid ToDue DateMethod

Authority Payment

General Directorate of Taxes

Paid To

Personal income tax withheld from salaries

Due Date

20th day of the following month

Method

Electronic filing and payment through the e-filing portal

Authority Payment

General Directorate of Taxes

Paid To

Social and health insurance contributions

Due Date

20th day of the following month

Method

Electronic filing with the monthly payroll declaration

Minimum Wage & Working Hours

Minimum wage: ALL 50,000 / Monthly; Effective 1 January 2026 (ALL 287.3 per hour), under Council of Ministers Decision No. 776
Standard working hours: 40 hours per week, 8 hours per day
Overtime: Paid at a premium of at least 25%, or compensated with time off; higher premiums apply on rest days and public holidays

Leave

Annual leave4 calendar weeksPaid by the employer; collective agreements may grant more
Sick leaveFor the length of certified illnessEmployer pays 80% of salary for the first 14 days; social insurance pays from day 15
Maternity leave365 daysPaid by social insurance at 80% of average earnings for 150 days, then at 50%

Leave type	Duration	Notes
Annual leave	4 calendar weeks	Paid by the employer; collective agreements may grant more
Sick leave	For the length of certified illness	Employer pays 80% of salary for the first 14 days; social insurance pays from day 15
Maternity leave	365 days	Paid by social insurance at 80% of average earnings for 150 days, then at 50%

Termination

Probation period: Up to 3 months
Notice period: 2 weeks (under 6 months of service); 1 month (6 months–2 years); 2 months (2–5 years); 3 months (5+ years)
Severance pay: 15 days of salary for each full year of service, for employees with 3+ years of service
13th salary: Not mandatory
Notes: Severance does not apply when the employee is dismissed for serious misconduct

Benefits

Social and health insuranceMandatory
State pension, sickness, maternity, and health coverage funded through payroll
Private health insuranceCommon
Top-up cover for private clinics, often offered to attract senior hires
Meal allowanceCommon
Daily or monthly allowance paid with salary

Visas & Work Permits

Unique permit (work and residence)
Requirements
Employment contract with an Albanian employer and a valid passport
Applied for online through the e-Albania portal

FAQ

Sources

Last updated: November 1, 2026

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