Hiring Talent And Managing Payroll In Albania

Agreements

• Labor Code: The Labor Code sets out the general framework for employment relationships, including provisions on working hours, minimum wage, termination of employment, and health and safety.
• Collective Bargaining Agreements: Collective bargaining agreements are agreements between employers and employees or their representatives, setting out the terms and conditions of employment for workers in a particular sector or workplace.
• Employment Contracts: Employment contracts are legally binding agreements between an employer and an employee. It defines the terms and conditions of employment.
• International Labor Organization (ILO) Conventions: Albania is a member of the ILO and has ratified several ILO Conventions, including Conventions on freedom of association, the right to organize and collective bargaining, forced labor, and non-discrimination in employment.

Onboarding Process

• Offer of Employment: First, the employer makes a written offer of employment to the candidate, setting out the terms and conditions of the job.
• Acceptance of Offer: The candidate must then accept the offer of employment in writing.
• The signing of the Employment Contract: After accepting the job offer, both the employee and the employer must sign a written employment contract that spells out the terms and conditions of the job.

Minimum Wage

Payroll Cycle

Annual Bonus

Health Benefits

• Many firms provide health insurance to employees. Hospitalization, outpatient treatment, and prescription medicines are covered by insurance.
• Mandatory workers' benefits in Albania include travel health insurance, health insurance, life insurance, accident insurance and retirement.

Working hours and overtime

• Most Albanians work 40 hours Monday through Friday. Some firms allow employees to work from home or have a shorter workday than eight hours.
• Workers get a 30-minute break. The break's duration and timing depend on the business and the employee's employment.
• Overtime: Depending on their job contract and current laws, overtime workers may receive extra money or time off.

Social Security

Taxes for Employees

• Income Tax: An employee's salary is subject to personal income tax. Depending on how much money someone makes, the tax rate ranges from 0% to 23%.
• Social Security: All workers are required to pay into the social security system. At the moment, employees pay 9.5% of their salary into the fund.
• Health Insurance: 1.7% is paid into health insurance by the employees.

Termination

• By mutual agreement of both parties.
• Voluntary termination by the employee.
• Unilaterally by the employee based on objective grounds, dismissal based on discipline and at the end of the probation period.

Severance Pay

Employees or Contractors

• An employee is someone who has signed a contract with their employer and does their work under the direction and control of their employer. Albanian labor law says that an employee is entitled to a regular salary and several benefits and protections, such as the minimum wage, health benefits, and unemployment insurance.
• Moreover, a contractor is a business person who works for themselves and does work for another business or person. Albanian labor law specifies that contractors are not the same as employees and do not get the same benefits and protections.If an employee is misclassified as a contractor, the employer may have to pay fines and make up for benefits and taxes that were not paid. Employers must correctly classify their employees and contractors to follow Albanian labor laws and stay out of trouble with the law.

Final Words