Even before hiring employees, organizations expanding to Albania should plan out the level of compensation and benefits they’re providing for each position. Companies must meet Albania’s compensation laws and establish a benefits management plan that meets the statutory minimums and also provides additional benefits that will increase the likelihood of business longevity.
G-P can help streamline the complex tasks involved in starting the hiring process in Albania, including creating a compensation and benefits plan. As a global Employer of Record (EOR), we’ll also handle compliance matters so that you can begin operations with confidence.
Albania compensation laws
Albania’s current minimum wage is ALL 40,000 a month. However, the country frequently chooses to raise its minimum wage, so companies should watch for any changes that could impact employees. All employees typically work 40 hours a week and 8 hours a day.
Employees who work on Sunday or a paid holiday should receive 1.25% of their regular wages. Companies can also choose to provide time off instead of additional wages for overtime per Albania compensation laws.
Guaranteed benefits in Albania
You must provide statutory benefits for all employees as part of your Albania benefits management plan. For example, employees should get a minimum of 20 days of paid vacation leave each year. The country also celebrates 12 public holidays that all employees should get time off for.
Albania has a maternity leave plan that includes 365 days of paid 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.
Fathers are entitled to 3 days of paternity leave.
All employees with dependent children are eligible for up to 12 days of paid leave to tend to a child. 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.
Albania benefits management
Companies must also consider adding supplemental benefits to their Albania benefits management plan. Employees often expect performance-based bonuses, and companies may choose to provide voluntary pension funds. Offering these benefits can help you attract skilled candidates and lead to greater retention rates.
Restrictions for benefits and compensation
Companies choosing to expand to Albania by establishing a subsidiary must incorporate before offering compensation and benefits. Unfortunately, it can take weeks or months to set up a subsidiary, acting as a roadblock to completing key business tasks.
With an Employer of Record partner like G-P, companies can begin the hiring and onboarding processes starting in just minutes instead of months, without setting up new entities.
Partner with G-P to build your everywhere workforce.
As your partner in global expansion, G-P will handle payroll and compliance, so you can focus on growing your team and scaling your business. Our market-leading Global Growth Platform™ is powered by the first fully customizable suite of global employment products and backed by the industry’s largest team of in-country HR and legal experts to streamline payroll management and help you offer competitive, compliant local benefits.
Learn more about our platform and request a proposal today.