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Employee Leasing in Albania

Albania offers a great opportunity for companies to expand their business into close proximity to Europe and at the crossroads of major trade routes. The country provides a hardworking and highly-educated labor force, competitive wages and tax incentives, and a stable business environment. Businesses can quickly benefit from these advantages by expanding their activity through employee leasing.

Employee leasing with FMC Group allows companies to enjoy unparalleled flexibility in entering the Albanian market with minimal investment costs. FMC Group accompanies clients throughout their expansion process and handles all the administrative and legal procedures related to recruitment, allowing clients to focus on the business side of their expansion and to implement their growth strategy as planned.


  • Advantages of Employee Leasing in Albania
  • Employee Leasing Services Offered by FMC Group
  • Advantages of the Albanian market
  • Recruitment in Albania
    • Minimum Wage and Payroll
    • Social Contributions and Taxes
    • Working Hours and Overtime
    • Vacation Days
    • Parental Leave and Sick leave
    • Notice Period
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Stephan Dorn FMC Group

Advantages of Employee Leasing in Albania

  • Expanding business into Albania through employee leasing offers clients the opportunity to quickly enter the Albanian market and enjoy all the advantages it offers.
  • Employee leasing allows clients to focus all their efforts on their strategy for market growth, while FMC Group covers all the administrative and legal procedures related to their business expansion.
  • Clients who expand into the Albanian market through employee leasing enjoy unmatched flexibility that significantly lowers their investment risk while increasing their chance of success because of their exclusive focus on business decisions.

Employee Leasing Services Offered by FMC Group

  • Selection of the best candidates that match the profile needed by the client;
  • Signing of the employment contract after negotiations with the employee and the client’s approval;
  • Payment of taxes and social contributions of employees per the Albanian law;
  • Provision of professional accounting services that follow international standards;
  • Payment of all the expenses and employee allowances after the client’s approval;
  • Management of the paid leaves and vacations of employees according to the client’s needs and the Albanian labor law;
  • Implementation of private health insurance at the best rates if needed;
  • Regular communication with the client about the management of their employees.

Management and Reporting Flow of Employee Leasing Services

Management and Reporting Flow Chart

Advantages of the Albanian Market

  • Albania enjoys an optimal geographic location in the western Balkans, putting it at the intersection of major European transit routes. The country is directly connected to European markets through ports in the Adriatic and the Ionian Sea.
  • Albania has some of the most competitive labor costs in the region and the Albanian workforce is reputed to be highly productive. The country has wage rates that are lower than most of its neighbors and a competitive tax system.
  • Albania has signed several Free Trade Agreements, notably agreements with the EU and Turkey, as well as the Central European Free Trade Agreement (CEFTA), and the European Free Trade Association (EFTA). The country also enjoys preferential export tariffs to countries such as the US, Russia, Australia, and Japan, among other nations.
  • Albania enjoys a highly stable macroeconomic situation, characterized by stable prices and low inflation rates. The average inflation rate has remained between 1.0% and 3.0% for over a decade and it stood at 1.6% in 2020.
  • The Albanian economy has high growth potential. According to the World Bank, Albania’s GDP is expected to grow by 3.8% in 2022, based on the preliminary estimations of a 7.2% GDP growth in 2021.
  • Further information on Albania’s investment climate can be found at Albanian Investment Development Agency.

Recruitment in Albania

Minimum Wage and Payroll

  • The national monthly minimum wage in Albania is set at ALL 32,000 (~EUR 265).
  • The payroll cycle in Albania is generally monthly, with salaries being paid on the last working day of the month, but employees who are paid by the hour, day, or week, are paid every two weeks.

Social Contributions and Taxes

Employer Contributions
Social Security 15.00%
Health Insurance 1.70%
Total 16.70%
Employee Contributions
Social Security 9.50%
Health Insurance 1.70%
Total 11.20%
Employee Income Tax
Up to ALL 30,000 per month 0.00%
Between ALL 30,001 and ALL 150,000 13.00% of the amount over ALL 30,000
From ALL 150,001 ALL 15,600

+ 23.00% of the amount over ALL 150,000


Working Hours and Overtime

  • Albanian law defines the weekly limit of working hours at 40, with 8 hours per day.
  • Any work above 40 hours per week is considered overtime and has to be paid at a minimum rate of 25% above the standard pay rate. The rate increases to 50% for overtime work done during weekends or public holidays.
  • Employees cannot exceed 200 hours of overtime work per year and 8 hours per week, unless in exceptional circumstances. Exceptional circumstances cannot exceed four months and the employee’s average working time during this period cannot exceed 48 hours per week.

Vacation Days

  • Employees in Albania are entitled to 4 weeks of paid leave after their first year of service. The paid leave has to be taken during the working year or within the first three months of the following year.
  • Employees have the obligation to request their annual paid leave at least 30 days before its start date.
  • Albania commemorates 15 public holidays (17 days):
    • New Year’s Day: January 1-2 (2 days)
    • Summer Day: March 14 (1 day)
    • Nevruz: March 21-22 (2 days)
    • Easter Day and Easter Monday (Catholic): Between March 22 and April 25 (2 days)
    • Easter Day and Easter Monday (Orthodox): Between April 4 and May 8 (2 days)
    • Labor Day: May 1st (1 day)
    • Saint Teresa Canonization Day: September 5 (1 day)
    • Independence Day and Liberation Day: November 28-29 (2 days)
    • National Youth Day: December 8 (1 day)
    • Christmas Day: December 25 (1 day)
    • Eid al-Fitr: First day after the Islamic month of Ramadan (1 day)
    • Eid al-Adha: Two months after the Islamic month of Ramadan (1 day)

Parental Leave and Sick Leave

  • Pregnant employees with over one year of service can take up to one year of paid maternity leave, with a minimum of 35 days before birth and 63 days after delivery. After 63 days, the employees can either remain on leave or return to work. The maximal duration of the paid maternity leave increases to 390 days for women who give birth to twins. The first six months of maternity pay equals 80% of the employee’s salary, while the pay for the remaining duration equals 50%.
  • Parents are entitled to 12 days of paid leave per year to tend to their children. The duration is increased to 15 days for employees with children under three years old. In addition, they can request up to 30 days of unpaid leave per year if they have to care for their child.
  • Employees can take a sick leave for as many days as their doctor recommends. For the first 14 days of the leave, the employer has to pay 80% of the employee’s salary. From the 15th day, social insurance covers the employee’s payment at a 70% rate of their salary.
  • Employees can take 2 days of paid leave in the event of the death of an immediate family member.
  • If an employee gets married, they can take 5 days of paid leave.

Notice Period

  • New employees with less than six months of work for the employer have to give a 2 weeks notice.
  • Employees who have been working for the same employer for between six months and two years have to give a 1 month’s notice.
  • Employees who have been working for the same employer for between two and five years have to give a 2 months notice.
  • Employees who have been working for the same employer for more than five years have to give a 3 months notice.

Disclaimer: Although we carefully researched and compiled the above information, we do not give any guarantee with respect to the actuality, correctness, and completeness.