Hiring in Albania: Employer Costs, Labor Laws and How to Hire
Albanian employers pay 16.7% in contributions on gross pay in 2026: 15% social insurance and 1.7% health insurance. The employee pays 11.2%, and the employer withholds income tax. On an ALL 100,000 gross monthly salary, the employer's cost is ALL 116,700 a month.
Hiring someone in Albania? This guide covers what an employee costs, the contribution rates, the labor rules that apply, the minimum wage, income tax, work permits and the ways a company outside Albania can employ someone there. Albania is not in the European Union.
Employer and employee contributions in Albania, 2026
Key employment rules in Albania
How to hire in Albania
Hiring in Albania comes down to two decisions: who you hire, and how you employ them.
- Find the person. Write the role, set the salary against Albanian pay levels, then source and interview candidates. You can run the search yourself with a job post, or use a placement service that delivers a shortlist.
- Choose how to employ them. An Albanian entity running payroll, an employer of record or a contractor agreement. Each option is explained below.
- Make the offer. The contract has to be in writing and meet the rules in the employment table above. The employer declares a new employee to the tax administration at least 1 day before work starts.
Your options for employing someone in Albania
- Albanian entity: you register a company in Albania, run payroll, withhold income tax and pay the contributions to the tax administration yourself. It suits a team of several people in Albania.
- Employer of record (EOR): a third-party provider becomes the legal employer and runs Albanian payroll for a monthly fee per employee. Your company directs the work.
- Contractor: the person invoices you through their own registered business. The relationship has to be genuinely independent, or it can count as employment.
Euro Remote Talent does not employ people on your behalf. We handle the placement: we find and shortlist the candidate, and you employ them through the route that fits.
What an employee costs in Albania
Employers pay 16.7% in contributions on gross pay: 15% social insurance and 1.7% health insurance. Take a gross salary of ALL 100,000 a month. The employer pays:
- Social insurance: ALL 100,000 x 15% = ALL 15,000
- Health insurance: ALL 100,000 x 1.7% = ALL 1,700
The employer's cost is ALL 100,000 + ALL 16,700 = ALL 116,700 a month. The employee pays 11.2% from the gross salary (ALL 11,200): 9.5% social insurance and 1.7% health insurance, and the employer withholds income tax. Contributions are paid on at least the minimum wage of ALL 50,000 a month and up to a maximum wage set by the Council of Ministers. The employer pays them by the 20th of the following month.
Minimum wage and pay
The national minimum wage is ALL 50,000 a month from 1 January 2026, for 174 hours of normal working time, or ALL 287.3 an hour. It rose from ALL 40,000. No figure for 2027 had been published by the Government on 4 November 2026. See the full breakdown on our Albania minimum wage page. The average monthly gross wage was ALL 92,150 in the second quarter of 2026, up 9.8% on a year earlier, according to INSTAT. See our average salary in Albania page.
Income tax in Albania
The employer withholds income tax from pay each month through the payroll. The law sets yearly rates and a personal deduction. Through a personal status declaration, the employee can ask the employer to apply the deduction monthly, at one twelfth of the yearly amount. The rules for 2026:
| Income tax on employment, 2026 | Amount |
|---|---|
| Monthly deduction if monthly income is up to ALL 50,000 | ALL 50,000 |
| Monthly deduction if monthly income is ALL 50,001 to ALL 60,000 | ALL 35,000 |
| Monthly deduction if monthly income is above ALL 60,000 | ALL 30,000 |
| Rate on yearly taxable income up to ALL 2,040,000 | 13% |
| Rate on yearly taxable income above ALL 2,040,000 | 23% |
Taxpayers with yearly employment or business income under ALL 1,200,000 can also deduct education costs for their dependent children, up to ALL 100,000 a year, through the annual return.
Work permits
Albania is not in the European Union, so EU free movement rules do not apply there. Foreign nationals who work in Albania need a single permit, a residence permit for work, under Law no. 79/2021 on Foreigners. The application is made online to the border and migration authority. The law has a separate single permit for ICT-enabled mobile workers. Citizens of the United States, EU member states and Kosovo receive a 5-year residence permit on their first application if they meet the general conditions.
How Euro Remote Talent can help
We do placement. We source, screen and interview remote professionals across Europe, then deliver a shortlist of 3 candidates within 21 days for a flat $6,500, or your deposit back. Prefer to run the search yourself? Post a job for $299 and reach candidates who want to work remotely.
See how placement works, post a job or book a 30-minute call. Browse remote jobs in Albania to see who is hiring there now.
This is general information, not legal or tax advice. Rules change and collective agreements can set different terms. Confirm with a local accountant or lawyer before you hire.
Frequently asked questions
How much does an employer pay in contributions in Albania?
16.7% of gross pay in 2026: 15% social insurance and 1.7% health insurance. Contributions are paid on at least the minimum wage of ALL 50,000 a month, up to a maximum wage set by the Council of Ministers.
What is the minimum wage in Albania in 2026?
ALL 50,000 a month from 1 January 2026, for 174 hours of normal working time, or ALL 287.3 an hour. It was ALL 40,000 before.
How much paid leave do employees get in Albania?
At least 22 working days a year under art. 92 of the Labour Code. Public holidays are not counted in the leave.
Do I need a work permit to hire an EU citizen in Albania?
Albania is not in the European Union, so EU free movement rules do not apply. Foreign nationals who work in Albania need a single permit under Law no. 79/2021 on Foreigners. EU and US citizens get a 5-year residence permit on their first application if they meet the general conditions.
Can a company outside Albania hire someone there without a local entity?
Yes. The usual routes are an employer of record, a third-party provider that employs the person for you, or a genuine contractor agreement. Euro Remote Talent handles the placement: we find, screen and shortlist the person, and you choose the route.
Sources
- ISSH, Sigurimi i detyruar: contribution rates and bases. Checked 4 Nov 2026.
- General Directorate of Taxes, Council of Ministers Decision no. 77 of 28 Jan 2015 on mandatory contributions. Checked 4 Nov 2026.
- Official Publications Center (qbz.gov.al), Law no. 29/2023 on income tax, version 6, art. 22 to 24. Checked 4 Nov 2026.
- Official Publications Center (qbz.gov.al), Law no. 81/2025 amending the income tax law. Checked 4 Nov 2026.
- State Labour Inspectorate, Council of Ministers Decision no. 776 of 19 Dec 2025 on the national minimum wage. Checked 4 Nov 2026.
- idp.al, Labour Code, consolidated with Law no. 91/2024. Checked 4 Nov 2026.
- INSTAT, Wage Statistics Q2 2026. Checked 4 Nov 2026.
- Ministry of Interior, Law no. 79/2021 on Foreigners. Checked 4 Nov 2026.
