Hiring Employees in Albania: An Employer’s Guide (2026)

ByBunchuk Valera

Albania’s affordable, English-capable workforce is a big part of why companies set up there — but hiring legally means following the Labour Code on contracts, pay, hours and contributions. This guide is written for employers. It pairs with the cost of doing business (where the numbers live) and the Doing Business hub.

Employment contracts

Employees must have a written employment contract setting out role, pay, hours, place of work, duration and notice. Contracts can be fixed-term or indefinite. A probation period is permitted at the start, during which notice is shorter. Get contracts drafted or reviewed locally so they comply with the Code.

Minimum wage and pay

Albania sets a national minimum monthly wage that rises periodically — confirm the current figure before you budget. Above the minimum, market rates vary widely by sector and seniority; IT, finance and outsourcing pay well above the national average.

Working hours, leave and holidays

  • A standard full-time week with statutory limits on hours and overtime rules.
  • Paid annual leave (a minimum number of working days per year).
  • Paid public holidays, plus sick and maternity/paternity provisions.

Social and health contributions

For each employee the company:

  • Withholds personal income tax from gross salary on the progressive scale.
  • Withholds the employee’s share of social and health contributions.
  • Pays the employer’s share of social and health contributions on top of gross salary.
  • Registers each new hire with the tax authority before they start, and files monthly payroll.

These contributions are a core part of your true cost per employee — see business taxes and operating costs.

Termination and notice

The Labour Code regulates dismissal: valid grounds, procedure and notice periods that lengthen with tenure, with potential severance. Follow the process carefully — improper dismissal can lead to compensation claims.

Hiring without a local entity: Employer of Record

If you want Albanian staff but don’t (yet) want to incorporate, an Employer of Record (EOR) legally employs the worker on your behalf — handling contracts, payroll, tax and contributions — while you direct the day-to-day work. It’s a fast way to test the market before you set up your own Sh.p.k.

Payroll in practice

Most companies run payroll through a local accountant or payroll provider, given monthly filings and fiscalisation. Keep clean records of contracts, hours and payments from the first hire.

This guide explains the general framework and is not legal, tax or accounting advice. Rules, rates and thresholds change — confirm the specifics for your situation with a qualified Albanian lawyer or accountant before you act.

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