GLOBAL EMPLOYER OF RECORD IN 190+ countries
Employer of Record in Albania
Hire the best local or international talent in Albania, enter or test the market without the cost and commitment of incorporation, and scale your team as the business case develops. Acumen acts as your Employer of Record, giving you a compliant way to employ locally.
GLOBAL EMPLOYER OF RECORD
Global coverage
Acumen International delivers global employment solutions across 190+ countries.
Strategic markets
Hiring and compliance support across North America, Europe, and Asia-Pacific.
Established jurisdictions
Lawful employment and payroll in regulated, compliance-intensive countries.
Growth economies
Expanding into new regions? Hiring support across fast-moving economies.
Risky and remote locations
Compliant employment solutions in jurisdictions with limited infrastructure.
Employing in Albania through an Employer of Record
With an Employer of Record, Acumen International is the legal employer of the people who work for your business in Albania. Acumen signs the employment contract under the Labour Code, registers the employee with the tax administration for social and health insurance, pays salary, contributions and income tax, and carries the employer’s legal obligations. Your business selects the person and directs the work. Where the right person has not yet been found, Acumen International can also run the search, from specialist recruitment to executive search, with background and education checks before the offer.
Situations where an Employer of Record serves an Albanian hire
- Contractor compliance. Full-time contractors move onto Albanian employment contracts, removing the status and permanent establishment questions a tax inspection would raise.
- One accountable provider. Contracts, payroll, permits and compliance sit with Acumen International instead of being split between several suppliers.
- No entity to set up or maintain. You employ in Albania without paying in capital, keeping statutory books or filing as a local company.
- Market tests and short-term projects. A pilot, a market assessment or a fixed-term assignment is staffed without permanent infrastructure and scaled up or wound down as results come in.
- Bridge to your own entity. While your Albanian company is being registered, the first employees start with Acumen International and transfer once it can employ them.
- Fast team launch. Local hires and relocating specialists are onboarded with permits, visas and payroll handled together.
- Mergers and restructuring. Albanian staff stay employed without a break while the legal entities around them change.
- NGO staffing. NGOs and development programmes employ project staff anywhere in Albania under the Labour Code.
- Employer liability. Acumen International holds the local employer’s liability, so statutory obligations rest with the party the authorities hold responsible.
- Remote team expansion. Albanian members of a distributed team receive contracts, pay and benefits that follow Albanian law.
Temporary agency employment in Albania: the legal basis and its limits
Since the 2015 amendments took effect in 2016, Articles 18/1 to 18/5 of the Labour Code have allowed an agency to employ a worker and place them with a receiving business, with the two sharing the employer’s rights and duties. These limits apply:
- The same work for the same receiving business can last no more than two years.
- The Council of Ministers can prohibit agency work in particular cases, sectors or categories of worker where the public interest is affected.
- The agreement between the agency and your business must be in writing and state the duration, place of work, a general description of the job and the fee.
- Placed employees are entitled to at least the conditions they would have if your business had hired them directly, including pay, working time, overtime and leave.
- The agency pays wages, files taxes and pays insurance contributions, and a late payment from your business to the agency does not reduce what the employee receives.
- Your business acts as the employer for health and safety, equal treatment, working time and day-to-day instructions, and cannot send the employee to work for another business.
- The agency and your business are jointly and severally liable for damage caused to the employee.
- A clause that stops your business from hiring the employee directly once the agency contract ends is void.
Because of the two-year limit, Acumen International agrees with you at the outset what happens to each role at the end of that period.
What Acumen International handles in Albania, from search to exit
| Stage | What it involves in Albania |
|---|---|
| Search and checks | Finding the candidate where needed, with background and education checks before the offer |
| Permits | The single residence and work permit through the e-Albania portal, the employment authorisation where one is needed, and family members who will move too |
| Contract and onboarding | A written employment contract, the written agreement with your business, and declaration of the new employee to the tax administration before the start |
| Pay | Monthly payroll in lek, with social and health insurance contributions and income tax declared and paid |
| Time and absence | Working-time and overtime records within the 48-hour and 200-hour limits, annual leave and sickness absence |
| Changes and renewals | Contract annexes, placement dates against the two-year limit and permit renewals before expiry |
| Exit | Statutory notice, seniority compensation where due, final settlement and deregistration |
In practice, this replaces the separate payroll provider, labour lawyer, immigration adviser and benefits broker a business would otherwise need in Albania.
Minimum wage and pay rules in Albania
From 1 January 2026, the national minimum wage is ALL 50,000 a month, up from ALL 40,000, or ALL 287.3 an hour based on 174 working hours a month. The same figure is the minimum monthly base for social insurance contributions.
Salaries are agreed as a gross monthly amount in lek. Under the Labour Code, overtime is paid at least 25% above the normal wage, or 50% when it falls on a weekly rest day or official holiday, unless it is compensated with time off. Each hour worked between 22:00 and 06:00 is paid at least 50% extra, and work on a weekly rest day or on an official holiday that falls on a working day at least 25% extra.
Employment contracts and working time in Albania
| Rule | What it means for you |
|---|---|
| Employment contracts are indefinite unless the work is temporary in nature | A fixed-term contract needs a genuine temporary reason |
| A fixed-term contract that continues past its end date becomes indefinite, and successive fixed-term contracts totalling three years make non-renewal a dismissal | Repeated renewals carry the cost of a permanent contract |
| Probation can last up to three months, cannot be extended and can be ended with five days’ notice | The fit is tested within a short, fixed window |
| The normal working week is up to 40 hours, and no further hours can be required once an employee has worked 48 in a week | Rotas are planned against a hard weekly ceiling |
| Overtime is capped at 200 hours a year | Seasonal peaks are absorbed within an annual limit |
| Annual leave is at least 22 working days a year and can be taken in single days | Leave is planned in days rather than whole weeks |
Ending employment in Albania
Notice periods are set by the Labour Code and cannot be changed by agreement. Once the employer gives notice, the employee is entitled to paid time off to look for new work.
| Length of service | Notice |
|---|---|
| During probation | 5 days |
| 3 to 6 months | 2 weeks |
| 6 months to 2 years | 1 month |
| 2 to 5 years | 2 months |
| More than 5 years | 3 months |
Seniority compensation
An employee with at least three consecutive years of service is entitled to seniority compensation of half a monthly salary for each full year worked, except after immediate dismissal for serious cause. Unused annual leave is paid out, together with a pro-rata share of any year-end bonus paid for at least three consecutive years without an express reservation.
Collective dismissal rules apply when, within 90 days, at least 10 employees are dismissed in a business of up to 100, at least 15 in a business of 100 to 200, or at least 20 in a larger business.
Albanian employment risks and how Acumen International covers them
| Risk | Where it arises | How Acumen International covers it |
|---|---|---|
| Worker misclassification | A contractor working full time under your direction can be treated as an employee, with contributions and income tax due for past periods | Your Albanian team is employed under the Labour Code |
| IP ownership | Rights in work created in the job sit with the Albanian employer unless the contracts pass them on | Contracts confirm the rights and transfer them onward to your business |
| Client liability for pay and contributions | The agency and the receiving business are jointly and severally liable for damage caused to a placed employee | Wages, contributions and tax are paid by Acumen International on schedule, whatever the invoicing cycle |
| Equal pay for assigned staff | Placed employees are entitled to at least the conditions of staff your business hires directly | Pay and conditions are set against your comparable roles before the offer |
| Permanent establishment | An employee who concludes contracts for your company can create a taxable presence in Albania | Signing authority stays with your company and is written into the role |
| Exit cost | Fixed statutory notice of up to three months and seniority compensation after three years | Notice and compensation are calculated before any decision |
| Sponsor obligations | A foreign employee’s single permit is tied to the employer and the employment declared on it | Acumen International acts as the employer on the application and keeps the permit and declared terms current |
| Pay transparency | Albania is not bound by the EU Pay Transparency Directive, but EU-based businesses apply it across their workforce | Pay structures are documented on objective criteria |
Single permits for foreign employees in Albania
Under the Law on Foreigners (No. 79/2021), a foreign national who will live and work in Albania needs a single permit that combines residence and work, applied for through the e-Albania portal. There are separate categories for employees, seasonal workers, intra-corporate transferees, highly qualified workers under the Blue AL Card, ICT-enabled mobile workers and others. For some categories, the National Agency for Employment and Skills must first issue an employment authorisation, and the responsible ministry sets an annual quota for foreign workers.
Permits are issued for three months, six months or one year, renewable, for two years, or for five years. On a first application, citizens of the United States, EU member states and Kosovo receive a five-year permit if they meet the general conditions. Visitors who are visa-exempt can stay 90 days in any 180-day period, which does not cover employment.
What Acumen International contributes
The permit is tied to an Albanian employer and the employment it declares. Acumen International can take that role, prepares the contract and the application, obtains the employment authorisation where the category requires one, and renews the permit before it expires for as long as the person works for you.
Family members
Family members can join the permit holder through a family reunification permit, which allows them to work without a separate employment authorisation unless another law restricts the activity. Family reunification is not available to holders of a seasonal work permit.
Employer cost and income tax in Albania
| Contribution | Employer | Employee |
|---|---|---|
| Social insurance | 15% | 9.5% |
| Health insurance | 1.7% | 1.7% |
| Total | 16.7% | 11.2% |
In 2026, social insurance is calculated on a monthly salary of at least ALL 50,000 and at most ALL 186,416. Health insurance applies to the full gross salary with no ceiling.
Personal income tax
| Annual taxable employment income | Rate |
|---|---|
| Up to ALL 2,040,000 | 13% |
| Above ALL 2,040,000 | 23% |
A standard deduction lowers taxable income: ALL 600,000 a year where income is up to that amount, ALL 420,000 where it is up to ALL 720,000, and ALL 360,000 above that. The employer withholds income tax monthly. Residents are taxed on their worldwide income, and non-residents only on income from Albanian sources.
The Global Payroll Calculator works out the employer’s 16.7% on top of an Albanian salary, applies the contribution ceiling, and shows where pay crosses into the 23% band.
Sectors employing through an Employer of Record in Albania
- Software, IT outsourcing and digital services companies employ developers, testers and support engineers, mainly in Tirana.
- Contact centres and business process providers hire Italian-, English- and German-speaking agents and team leaders.
- Tourism and hospitality groups on the Adriatic and Ionian coasts employ hotel management and guest service staff, alongside seasonal teams.
- Energy companies developing hydropower, solar and wind projects need engineers and project managers.
- Apparel and footwear manufacturers producing for European brands employ production, quality and logistics roles.
- International NGOs and development programmes employ project managers, specialists and field staff across the country.
Albanian hiring cases and how they are handled
| Case | What Albanian rules add | How it is handled |
|---|---|---|
| A developer has invoiced your company as a contractor for two years | Full-time work under your direction points to employment, with contributions and tax at stake | The developer moves onto an Albanian employment contract with Acumen International |
| An engineer from Germany relocates to Tirana | EU citizens receive a five-year single permit on first application if they meet the general conditions | The longer permit is requested from the start, so renewals are not needed for five years |
| A placement approaches two years | The same work for the same receiving business cannot exceed two years | The move to your own company or to direct employment is planned months before the date |
| A long-serving employee’s role is cut | Notice can reach three months, and seniority compensation is due after three years of service | Both are calculated and budgeted before the decision |
Benefits, payroll and leave in Albania
Albanian packages for skilled roles often add private health insurance, meal allowances and, for people relocating, help with housing. Collective agreements and company policy can add further allowances and bonuses.
Payroll obligations
| When | What happens |
|---|---|
| Before the first working day | The new employee is declared to the tax administration |
| By the 20th of the following month | The monthly payroll is declared, and income tax and contributions are paid |
| By 31 March each year | Employees with income above ALL 1,200,000 or more than one employer file an annual income declaration |
Leave entitlements
| Leave | Entitlement | Paid by |
|---|---|---|
| Annual leave | At least 22 working days a year | Employer |
| Official holidays | National and religious holidays set by law, including Independence Day on 28 November and both Catholic and Orthodox Easter | Employer |
| Sick leave | Payment during certified incapacity | Employer for an initial period, then social insurance |
| Maternity leave | Work is prohibited for 35 days before the expected birth and 63 days after, with social insurance benefits beyond that | Social insurance |
| Paternity leave | 3 paid days on the birth of a child | Employer |
| Parental leave | At least 4 months unpaid until the child turns 6, for employees with a year’s service | Unpaid |
Sources
- Law No. 79/2021 on Foreigners, English translation, Ministry of Interior
- Obtaining a work and residence permit, Albanian Investment Development Agency
- Labour Code of the Republic of Albania, Law No. 7961, as amended
- Important amendments to the Albanian Labour Code in force from June 2016
- Recent amendments to the Labour Code, KPMG Albania
- Taxation of employment income, KPMG Albania
- International employment law guide: Albania, Deloitte
- Albania: taxes on personal income, PwC tax summaries
- Albania: other taxes, PwC tax summaries
- Albania adopts new decision on national minimum wage
- Albania tax agency announces 2026 minimum and maximum wage rates
FREQUENTLY ASKED QUESTIONS
Got questions?
We’ve got answers
Have questions about hiring globally? You’re not alone. Here are the answers to the most common questions from teams expanding into new markets — from compliance and onboarding timelines to payroll and local benefits.
If you don’t see what you’re looking for, our team of in-country experts is always ready to help you navigate the details.
Can we move an existing contractor or employee onto an Employer of Record in Albania?
Yes, where the arrangement is suitable. Acumen can employ the individual through its Employer of Record structure in Albania, giving the worker a formal local employment relationship without requiring your company to create its own employing entity. This is an employment transition, not a contractor reclassification service.
What happens if we later open our own entity in Albania?
The Employer of Record arrangement can act as a bridge rather than a permanent commitment. When your Albania entity is ready and direct employment becomes the preferred model, Acumen can coordinate the employee transition subject to the local requirements that apply at that point.
Is an Employer of Record suitable for one senior or specialist hire in Albania?
Yes. An Employer of Record can make sense when the role matters commercially but a single hire or small headcount does not justify creating a local company. Acumen provides the employing solutions in Albania while your business retains ownership of the role and its objectives.