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Employer of Record Albania
Hire staff and expand your business in Albania with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in Albania designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Albania. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Albania takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record in Albania
A Brief Guide to Albania
Albania has been experiencing consistent economic growth, and its citizens enjoy a relatively low cost of living. The country is making strides in improving its healthcare and education systems. Albania is a parliamentary republic and is a member of the United Nations, NATO, and a candidate for European Union membership. It is also committed to environmental sustainability and the use of renewable energy sources.
| Category | Information |
| Location | Southeastern Europe |
| Capital | Tirana |
| Largest City | Tirana |
| Official Language | Albanian |
| Area | 28748 square kilometers |
| Population | Approximately 2.8 million |
| Currency | Lek (ALL) |
| Major Cities | Durrës, Vlorë, Shkodër, Elbasan |
| GDP | $15.3 billion USD |
| Human Development Index (HDI) | 0.795 (high) |
| Major Industries | Manufacturing, services, tourism, and agriculture |
Business Culture
Business Culture in Albania
Business culture in Albania is characterized by a blend of formality and personal relationships. Respect for hierarchy, punctuality, and professionalism is valued. Communication can be both direct and indirect, depending on the situation. Building long-term relationships and trust is essential, as personal connections often play a significant role in business dealings. Socializing and small talk are common before discussing business matters.
Albanians appreciate well-prepared and knowledgeable business partners, and demonstrating respect for local customs and traditions can be beneficial. In Albanian business culture, success is often achieved by combining professionalism, respect, and cultivating strong relationships.
Payroll and Taxes
Payroll and Taxes in Albania
Standard practice in Albania is to have 12 pay months in a year.
Employee Taxation
Income tax rates in Albania are progressive, with higher income levels subject to higher tax rates:
| Gross Annual Income (in ALL) | Tax Rate (%) |
|---|---|
| 0 – 30,000 | 0 |
| 30,000 – 150,000 | 13 |
| Above 150,000 | 23 |
Employer Taxation
Employer costs in Albania include more than just the gross salary paid to employees. Employers are responsible for various costs, which may include:
Employer Costs in Albania | Approximate Percentage of Gross Salary |
| Social Security Contributions | 15% |
| Health Insurance Contributions | 2% |
Employment Law
Employment Law in Albania
Employment Contracts: Employment contracts can be written or verbal, but written contracts are recommended. Contracts should specify important details such as employment duration, working hours, salary, and notice periods for termination.
Working Hours: The standard maximum working time in Albania is 40 hours per week or 8 hours per day. Overtime work is subject to additional compensation at a higher rate.
Employees Rights: Employees in Albania have various rights, such as the right to equal treatment, protection against discrimination, and freedom of association. Regulations also address working conditions, workplace safety, and employee representation.
Leave: Employees in Albania are entitled to various types of leave, including paid annual leave (minimum of 20 working days per year), maternity leave, paternity leave, sick leave, and family care leave.
Termination: Termination of employment in Albania requires proper notice, which varies depending on the length of employment. Unjustified termination can lead to claims for damages or reinstatement.
Collective Bargaining Agreements: Collective bargaining agreements are used in Albania, covering aspects of employment such as wages, working hours, and other employment conditions. These agreements are negotiated between employers’ associations and trade unions.
Pension and Healthcare
Albania Pensions
In Albania, there is a mandatory state pension system funded by social security contributions from both employees and employers. Employers are required to contribute to the state pension fund on behalf of their employees.
Healthcare in Albania
There is a public healthcare system in Albania, which provides basic healthcare services to its residents. The system is funded through a combination of social health insurance contributions from employees and employers, government subsidies, and general tax revenues. While the public healthcare system is accessible to all residents, it faces challenges such as limited resources, outdated infrastructure, and insufficient staffing. As a result, many Albanians also opt for private healthcare services, which offer a higher standard of care but come at a higher cost.
Wondering if expanding
in Albania is right for you?
Read on or speak to a member of our team now
The Benefits
Albania Employer of Record Benefits
When you choose Agility EOR to expand in Albania, we guarantee an employer of record service tailored to the needs of your business
Compliance
We are on top of regulatory changes in Albania so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Albanian authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Albania payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.