# Hiring in Albania: employment costs, payroll and compliance

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> Statutory data last updated: 2026-02-23. Every figure below carries its own source year.

## Country

| Field | Value |
|---|---|
| Region | Europe |
| Currency | ALL (Albanian lek) |

## Pay & working time

| Field | Value | Source year |
|---|---|---:|
| Minimum wage | ALL 50,000 | 2026 |
| 13th-month salary | none | 2026 |

## Employer cost & tax

| Field | Value | Source year |
|---|---|---:|
| Employer social security | 16.7% | 2024 |
| Employee social security | 11.2% | 2024 |
| Corporate tax rate | 15% | 2026 |

## Termination

| Field | Value | Source year |
|---|---|---:|
| Notice period | 10.1 weeks | 2019 |
| Severance pay | 10.7 weeks | 2019 |

## Leave & time off

| Field | Value | Source year |
|---|---|---:|
| Public holidays | 13 days | 2026 |
| Maternity leave | 52.1 weeks | 2026 |
| Paternity leave | 0.4 weeks | 2026 |

## Labour market

| Field | Value | Source year |
|---|---|---:|
| Retirement age | 65 | 2026 |
| Unemployment rate | 10.9% | 2025 |
| GDP per capita | $11,378 | 2024 |
| Union density | 36.8% | 2017 |
| Collective bargaining coverage | 51.1% | 2018 |

## Overview

The most common mistake foreign employers make in Albania is treating it like a Western European market and underestimating how strictly local labour law is enforced on contracts, contributions, and termination. Using an Employer of Record (EOR) sidesteps that risk by putting a locally compliant entity between you and Albanian employment law from day one. The numbers that matter most: employer social security sits at 16.7% of gross salary, the corporate tax rate is 15%, and the monthly minimum wage is 50,000 ALL as of 2026.

Albania has a meaningful labour force and an unemployment rate just under 11% in 2025, which means you can find talent, but competition for skilled workers in tech and finance is real. An EOR handles registration, payroll, and contributions so you can hire without setting up a local entity, which is a significant time and cost saving when you are testing the market.

## Cost context

The main driver of employer cost in Albania is the social security contribution, set at 16.7% of an employee's gross salary. That amount goes on top of the gross wage you agree with your hire and covers the employer's share of the national social insurance scheme. Employees also contribute 11.2% from their own side, but that comes out of their gross pay rather than adding to your bill. There are no further itemised employer contributions in the data record beyond this rate.

## Things to watch

A few things stand out when hiring in Albania that are worth keeping front of mind before you sign anything.

- Employer social security adds up fast. At 16.7% of gross salary on top of what you pay the employee, your true cost per hire is noticeably higher than the agreed salary figure. Budget for this from the start.

- Notice periods are longer than many expect. The average notice period runs to around 10.1 weeks, so if a hire does not work out, you cannot exit quickly. Factor that into your planning.

- Severance is a real liability. Average severance sits at around 10.7 weeks of pay. Terminating an employee without following the correct process can make that liability even larger.

- Minimum wage is a hard floor. The monthly minimum wage is 50,000 ALL in 2026. Any offer below that is not legally valid, regardless of what a candidate agrees to.