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Nearshoring to Albania

Albania is considered one of the best destinations for outstaffing in Europe, thanks to its low labor costs and the high quality of its workforce. The Albanian workforce is young and talented and most of the younger Albanian population can speak many languages, including English, Italian, and to a lesser degree German and French. Additionally, Albania counts around 33,000 new university graduates every year, mostly in fields such as business administration, IT, and engineering.

The nearshoring services offered by FMC Group give companies privileged access to the well-trained workforce in Albania without the need for setting up a local company or renting out offices. Thanks to its total compliance with local laws and regulations, FMC Group guarantees clients easy, quick, and safe access to the Albanian labor force. The non-required long-term commitment also offers clients unparalleled flexibility.

Content:

  • Advantages of Nearshoring to Albania
  • FMC Group’s Nearshoring Approach
  • Advantages of Nearshoring with FMC Group
  • Labor Laws in Albania
    • Working Hours
    • Annual Paid Leave
    • Other Types of Paid Leave
    • Minimum Wage
    • Social Contributions and Taxes
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Stephan Dorn FMC Group

Advantages of Nearshoring to Albania

  • The Albanian population is young and well educated. Nearly 50% of the population in Albania is under 35 years old and about 33,000 students graduate from Albanian universities every year, notably with degrees in the fields of engineering, IT, and business administration.
  • In addition to the local language, English, Italian, and Greek are widely spoken in Albania. Other languages such as German and French are also taught in schools.
  • Because of the relatively high unemployment rate, 11.7% in 2020, the Albanian workforce is highly motivated and ready for opportunities.
  • Outstaffing IT jobs in Albania is widely common for multinational businesses, due to the country having one of the lowest labor costs in Europe. The salaries of IT engineers and software developers in Albania vary widely, depending on skills and experience, but they typically average around EUR 650 to EUR 750 per month.
  • The Albanian government has built an ecosystem for the IT sector in the capital Tirana. Called Albania Tech, the ecosystem hosts dozens of foreign companies, local startups, incubators, and universities, among other institutions that contribute to the development of the IT sector in the country.

FMC Group’s Nearshoring Approach

Selection and interviews

  • Preselection of candidates according to the client’s needs and requirements;
  • Establishment of reports on the best candidates;
  • Conduction of job interviews;
  • Personality tests (optional).

Recruitment

  • Showcasing video interviews to the client so they can make the final recruitment decision;
  • Hiring successful candidates at the local FMC Group company in Albania.

Operations

  • Administrative management of the employees by FMC Group, including contracts, payments, vacations, etc.;
  • Executive and functional management of the employees by the client;
  • Provision by FMC Group of all the required tools and infrastructure for employees to successfully achieve their mission.
Approach for Nearshoring

Advantages of Nearshoring with FMC Group

  • Search for candidates perfectly tailored to the client’s requirements;
  • Publication of job advertisements on different platforms and search for candidates on FMC Group’s database;
  • Full hiring process conducted by FMC Group, including preselection, interviews, reference checks, contract negotiations, etc.;
  • Complete management of employees’ functions and tasks by the client;
  • Flexibility and no long-term commitment;
  • No need for setting up a local company.

Labor Laws in Albania

Working Hours

  • Employees in Albania can work up to 40 hours per week and 8 hours per day.
  • Overtime work is paid at a minimum of 125% of the standard pay on regular days and a minimum of 150% on weekends and public holidays.
  • Overtime work cannot exceed 8 hours per week and 200 hours per year, except in exceptional circumstances. These circumstances cannot be in place for over four months and the average working hours for employees during this period have to be maintained below 48 hours per week.

Paid Vacation and Public Holidays

  • Albanian labor law allows employees to take 4 weeks of paid leave per year after their first year of service.
  • Employees have to inform their employer 30 days before taking their annual paid leave.
  • Albania celebrates 15 public holidays:
  • § January 1-2: New Year’s Day (2 days)
  • § March 14: Summer Day (1 day)
  • § March 21-22: Nevruz (2 days)
  • § Between March 22 and April 25: Catholic Easter Holiday (2 days)
  • § Between April 4 and May 8: Orthodox Easter Holiday (2 days)
  • § May 1st: Labor Day (1 day)
  • § September 5: Saint Teresa Canonization Day (1 day)
  • § November 28: Independence Day (1 day)
  • § November 29: Liberation Day (1 day)
  • § December 8: National Youth Day (1 day)
  • § December 25: Christmas Day (1 day)
  • § First day after the Islamic month of Ramadan: Eid al-Fitr (1 day)
  • § Two months after the Islamic month of Ramadan: Eid al-Adha (1 day)

Other Paid Leaves

  • Maternity Leave: Pregnant employees with more than one year of service can take up to one year of paid maternity leave. The maximal duration is extended to 390 days for multiple births. The minimum duration of the leave is 35 days before birth and 63 days after. Following the 63rd day after delivery, employees can either remain on leave or return to work. The new mother receives 80% of her salary during the first six months of the leave, and 50% of the salary later.
  • Parental Leave: Employees with children can take 12 days of paid leave per year to tend to their children, or 15 days if they have a child under three years old. Employees with young children under three can also request up to 30 days of unpaid leave per year to care for their children.
  • Sick Leave: Employees can take a sick leave for as long as they are ill and their doctor can confirm it. Employers have to cover 80% of the employee’s salary during the first 14 days of sick leave. Afterward, social security covers 70% of the salary.
  • Bereavement Leave: Employees are entitled to 2 days of paid leave if one of their immediate family members passes away.
  • Marriage Leave: Employees have the right to take 5 days of paid leave in the event of their marriage.

Minimum Wage

  • The minimum wage in Albania is the same across the entire country and it is set at ALL 32,000 (~EUR 265).
  • Salaries in Albania are usually paid on a monthly basis, on the last working day of each month. However, employees who receive payments by the hour, day, or week are paid biweekly.

Social Contributions and Taxes

  • Employers in Albania have to pay a contribution of 16.70% of their employees’ gross salary, which includes 15.00% that goes to social security and 1.70% that goes to health insurance.
  • Employees pay 11.20% of their gross salary as contributions, including 9.50% for social security and 1.70% for health insurance.
  • Employees with revenue below ALL 30,000 per month are exempt from income tax.
  • Employees with a monthly salary ranging from ALL 30,001 to ALL 150,000 (~EUR 265 to ~EUR 1,240) have to pay a 13.00% tax on the amount above ALL 30,000.
  • Employees with a monthly salary of more than ALL 150,001 pay a fixed tax of ALL 15,600 (~EUR 129), in addition to a 23.00% tax on the amount above ALL 150,000.