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Hiring in Albania
When negotiating terms of an employment contract and offer letter with an employee in Albania, it may be useful to keep the following in mind.
Employment contracts in Albania
In Albania, employment contracts can be oral or written, but it’s best practice to put a strong, written contract in place in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Albania should always state the salary and any compensation amounts in Albanian lek (ALL) rather than another currency.
Working hours in Albania
Albania’s standard workweek is 40 hours, with a standard workday of 8 hours. Workers are entitled to 11 hours between workdays and they are not allowed to work on Sundays.
Work hours should not exceed more than 50 per week. If employers request extra hours during weekdays, they must pay 125% of the employee’s regular wages. Work performed on the weekend or on paid holidays should be compensated at 150% of the employee’s regular wage, unless the Collective Bargaining Agreement (CBA) or employment contract states differently. Employers may provide compensation in time off rather than wages.
Holidays in Albania
- New Year’s Day
- Summer Day
- Nevruz Day
- Easter Sunday
- Labour Day/May Day
- End of Ramadan
- Feast of the Sacrifice
- Mother Teresa Beautification Day
- Independence Day
- Liberation Day
- National Youth Day
- Christmas Day
Vacation days in Albania
Employees are entitled to a minimum of 20 days of paid vacation leave, which may not be taken in amounts of less than 1 week. Additional vacation may be agreed to in the employment contract or CBA.
Albania sick leave
Employees are generally entitled to 14 days of sick leave, paid at an 80% rate by the employer.
Employees who are injured at work can receive compensation from social insurance.
Maternity/paternity leave in Albania
Employees are entitled to 365 days of paid maternity leave. A total of 35 days should be taken before the expected due date and the remaining should be taken following the birth of the child for the duration of the rest of the year. The first 63 days of maternity leave are mandatory and after this period, the employee can decide if they want to return to work or not. If they return, they have the right to work 6 hours per day until the child reaches 1 year of age.
Employees on maternity leave are paid 80% of their average daily wage prior to the birth and up to 150 days after the birth. For the remaining leave, pay is given at 50% of the average wage.
Fathers are entitled to 3 days of leave for the birth of a child.
All employees with dependent children are eligible for up to 12 days of paid leave. Those with children under the age of 3 are entitled to an additional 3 days. Unpaid leave of up to 30 days per year may also be taken to care for a child.
Health insurance in Albania
Albania has compulsory universal healthcare which is funded through payroll taxes and the general budget. Private healthcare is also available.
Albania supplementary benefits
Some companies offer voluntary pension funds.
Bonuses
Performance-based bonuses are common in Albania.
Termination/severance in Albania
Generally, an employee is considered to be on probation for the first 3 months of work. During this time, they may be terminated with 5 days’ notice.
Required notice after the probation period is as follows:
- First year of work: 1 month
- 2 to 5 years: 2 months
- 5+ years: 3 months
The employment contract or collective agreement may stipulate different notice periods, but said periods cannot be shorter than 2 weeks if the employee has worked for 6 months, and no shorter than 1 month if the employee has worked for more than 6 months.
Employees are generally eligible for a severance payment of their salary for at least 15 days if they have worked for 3 or more years.
Paying taxes in Albania
Social security and health insurance contributions are paid by the employer at the rate of 16.7%.
Employees pay social security contributions at a rate of 11.2%.
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