THINKING OF HIRING IN ALBANIA? SMART MOVE.

Here’s What You Really Need to Know — We’re Sharing the Blueprint.

Before you sign that first contract or welcome your new team member, there are a few legal steps you simply can’t skip. From working hours to paid leave, and from payroll duties to proper termination, Albanian labor law has its own rhythm. And trust us, it pays to dance to the beat. 

Why Knowing the Rules Can Save You Thousands.

Albanian labor law protects both the employee and the employer, but it also comes with expectations and requirements that, if misunderstood, can cost you time, money, and legal headaches. In this guide, we break down everything you need to know about employment relationships in Albania, in plain English and without the legal jargon.

Whether you’re a foreign investor, a startup founder, or expanding your European team, here’s what you need to know to get it right from day one.

Contracts Are Not Optional – And Here’s What Goes In One.

In Albania, every employee must have a written contract—verbal agreements don’t count. These contracts must be signed before the employee starts work.

A valid employment contract should include:

1. Identification of the parties – full names and personal/company details

2. Job title and duties – what the employee is hired to do

3. Start date and (if applicable) end date

4. Working hours – standard or part-time, and any shifts involved

5. Salary and payment schedule – monthly or bi-weekly

6. Trial period – usually up to 3 months for indefinite contracts

7. Notice periods and termination conditions
   

At Manpower360, we draft compliant and bilingual contracts (EN/AL), adapted to your business and fully aligned with Albanian labor law.

40 Hours, or More? Working Time, Overtime, and What’s Legal.

According to Albanian labor law, the standard working time is 40 hours per week, divided into 8 hours per day, usually from Monday to Friday. Every employee is entitled to at least one full day of rest per week, typically Sunday.

Any work performed beyond 40 hours is considered overtime, and must be compensated accordingly. Employers are allowed to request overtime only within certain legal limits:

1. Maximum 8 hours of overtime per week

2. Maximum 200 overtime hours per year

3. In exceptional circumstances, overtime may temporarily exceed these limits, but only for up to 4 months and the employee’s average working time must not exceed 48 hours per week

   
   

Overtime pay is regulated as follows:

1. +25% for standard overtime hours

2. +50% for overtime during weekends and public holidays

3. Night work (10:00 p.m. – 6:00 a.m.): +50% premium

4. Evening work (7:00 p.m. – 10:00 p.m.): +20% premium

These rules are not only legally binding, but also essential to maintain a healthy work-life balance for your employees. At Manpower360, we help you stay compliant while optimizing your workforce schedules.

Paying Your Team: From Minimum Wage to Payroll Compliance.

However, for skilled or specialized positions, the average monthly salary is typically higher. Salaries must be paid at least once per month, via bank transfer, and accompanied by a payslip.

Employers are required to withhold and declare:

• Personal income tax

• Social and health insurance contributions

  
  

We can assist you with full payroll services and declarations.

Every employee must be registered in the national tax and insurance system before they start working. This includes:

• Social insurance (pension, disability, unemployment)

• Health insurance

  
  

Contribution rates (approximate):

• Employer: ~16.7% of gross salary

• Employee: ~11.2% (withheld by employer)

Registration must be done electronically before the first day of employment. Manpower360 handles full employee registration and monthly declarations to keep your business compliant.

Vacations, Sick Days, Holidays: What You Have to Offer.

Employees in Albania are entitled to 4 weeks of paid vacation after completing their first year of service. This leave must be used within the current working year or no later than March 31st of the following year. The request for annual leave should be submitted at least 30 days in advance.

In addition, Albania recognizes 15 main official public holidays, which translate into 17 days off in total. These include:

1. New Year’s Day – January 1^st 

2. New Year Holiday (Day 2) – January 2^nd 

3. Summer Day – March 14^th  

4. Nevruz Day – Date may vary

5. Catholic Easter Sunday – Date may vary

6. Catholic Easter Monday – Date may vary

7. Orthodox Easter Sunday – Date may vary

8. Orthodox Easter Monday – Date may vary

9. Labor Day – May 1^st 

10. Eid al-Fitr (End of Ramadan) – Date may vary

11. Eid al-Adha (Feast of Sacrifice) – Date may vary

12. Saint Teresa Canonization Day – September 5^th 

13. Alphabet Day (Albanian Alphabet Congress Day) – November 22^nd 

14. Independence Day – November 28^th 

15. Liberation Day – November 29^th 

16. National Youth Day – December 8^th 

17. Christmas Day – December 25^th 

Becoming a Parent or Feeling Unwell? Here's What the Law Says:

Albanian labor law is family-friendly and provides generous parental leave. Here’s how it works:

• Maternity Leave:

  
  

  - Pregnant employees with over one year of service are entitled to up to 365 days of leave

  - At least 35 days before birth and 63 days after delivery are mandatory

  - Twins: The leave increases to 390 days

  - Compensation: First 6 months = 80% of salary; remaining time = 50%

  
  

• Parental Leave (for both parents):

  
  

  - 12 paid days per year to care for children

  - 15 days if the child is under 3 years old

  - Up to 30 days unpaid leave annually for child care

  
  

• Sick Leave:

  
  

  - First 14 days: 80% of salary paid by employer

  - From day 15: 70% paid by Social Insurance

  - Based on medical recommendation, no legal upper limit for duration

  
  

• Additional Paid Leave:

  - Marriage: 5 days

  - Death of immediate family member: 2 days

  
  

Manpower360 helps your company correctly manage all employee entitlements and maintain full compliance with leave and insurance obligations.

Breaking Up Is Hard – But Legal Termination Doesn’t Have to Be.

Ending a contract—especially an indefinite one—requires attention. There are three main types of termination:

• Expiry of fixed-term contract – no notice required, but written confirmation is recommended.

• Termination with notice – depends on employee’s length of service.

• Immediate termination for cause – must be justified, documented, and communicated formally.  Notice periods:

  - Up to 6 months of work: 2-weeks prior notice

  - 6 months–2 years of work: 1-month prior notice

  - 2–5 years of work: 2-months prior notice

  - Over 5 years of work: 3-months prior notice

  
  

  Wrongful termination can lead to employee lawsuits and compensation up to 12 months’ salary or more. We help you navigate dismissals properly, step by step.
  

Don’t Wait for Trouble: Why Internal Rules Matter More Than You Think.

Many companies overlook the importance of internal regulations—but these documents are essential.

Internal rules set clear expectations on:

• Working hours and breaks

• Conduct, confidentiality, and behavior

• Disciplinary procedures and warnings

• Health and safety standards

  
  

Having a strong internal regulation policy protects your company in case of disputes, audits, or legal claims. We create customized Internal Regulations for your business—simple, clear, and fully enforceable.

Remote Work & Staff Leasing: Albania’s Hidden Advantage.

Albania’s labor law allows for flexible hiring models, including:

• Part-time contracts

• Remote work

• Staff leasing (through licensed agencies)
  

These are great options for businesses that want to scale up without long-term commitment. Albania is increasingly attractive for remote teams thanks to its skilled workforce and competitive costs.

Albania is quickly becoming a hotspot for remote teams—and with Manpower360’s staff leasing and recruiting services, you can hire smart, stay lean, and grow faster. 

Want Peace of Mind? This Is Where Manpower360 Comes In.

Albania offers great opportunities for doing business—but employment laws must be followed carefully. From recruitment to contracts, payroll, employee management, and termination—Manpower360 takes care of it all.

We help you focus on growing your business, while we handle the legal, procedural, and human side of employment.

Ready to hire in Albania or want to learn more? Get in touch with us today for professional support and tailored solutions.