GLOBAL EMPLOYER OF RECORD in 190+ countries
Employer of Record in Kosovo
Our Global Employer of Record solutions handle contracts, payroll, tax, benefits, and immigration in 190+ countries, so you build compliant teams fast, without incorporating abroad.
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 Kosovo 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 Kosovo. Acumen signs the employment contract under the Law on Labour, registers the employee with the Tax Administration and the Kosovo Pension Savings Trust, pays salary, pension 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 a Kosovo hire
- Contractor compliance. Full-time contractors in Kosovo move onto employment contracts under the Law on Labour, removing the status and permanent establishment questions a tax inspection would raise.
- One accountable provider. Contracts, payroll, pension registration, permits and compliance sit with Acumen International instead of being split between several suppliers.
- No entity to set up or maintain. You employ in Kosovo without registering a business, keeping statutory books or filing as a local employer.
- 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 Kosovo company is being registered, the first employees start with Acumen International and transfer once it can employ them.
- Fast team launch. Local hires and specialists moving to Kosovo are onboarded with their permits and payroll handled together.
- Mergers and restructuring. Kosovo staff stay employed without a break while the legal entities around them change.
- NGO staffing. International organisations and development programmes employ project staff anywhere in Kosovo under the Law on Labour.
- Employer liability. Acumen International holds the local employer’s liability, so statutory obligations rest with the party the authorities hold responsible.
- Remote team expansion. Kosovo members of a distributed team receive contracts, pay and pension contributions that follow Kosovo law.
Employing for another business in Kosovo: the legal basis and its limits
The Law on Labour (No. 03/L-212) governs the employment relationship in Kosovo and does not set out a separate regime for temporary agency work. Acumen International therefore employs your team directly under that law and provides their services to your business under a commercial agreement. These limits follow from the Labour Law and the foreign employment rules:
- The contract must be in writing and is open-ended unless a fixed term is stated, and fixed-term contracts cannot exceed ten years in total before they are treated as open-ended.
- Contracts for a specific task are limited to 120 days a year.
- A foreign national’s work permit is issued for a named employer and cannot be transferred to another, so a non-Kosovo hire is tied to Acumen International as employer for the life of the permit.
- Termination by the employer requires a reason recognised by the Labour Law and the notice that goes with it.
Because there is no agency framework to rely on, Acumen International structures each engagement so that it is the employer in substance, with authority over the contract, pay and compliance, while your business directs the day-to-day work.
What Acumen International handles in Kosovo, from recruitment to exit
| Stage | What it involves in Kosovo |
|---|---|
| Recruitment and checks | Finding the candidate where needed, with background and education checks before the offer |
| Permits | The work permit, with the Employment Office’s labour market certification, and the temporary residence permit for foreign hires |
| Contract and onboarding | A written employment contract under the Law on Labour and registration with the Tax Administration and the Pension Savings Trust |
| Pay | Monthly payroll in euros, with income tax withheld and pension contributions paid to the Trust |
| Time and absence | Working-time records within the 40-hour week and overtime limits, annual leave and sick leave |
| Changes and renewals | Contract annexes, fixed-term renewals within the legal limits and permit renewals filed a month before expiry |
| Exit | Notice, 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 Kosovo.
Minimum wage and pay rules in Kosovo
Under Government Decision No. 10/273 of 31 October 2025, the minimum wage rose in two steps in 2026: to €2.50 an hour, or €425 gross a month full time, from 1 January, and to €3.00 an hour, or €500 a month, from 1 July. It had been €350 a month. The government sets the rate each year on the proposal of the Economic and Social Council.
Salaries are agreed as a gross monthly amount in euros. The Law on Labour adds supplements of 30% for each hour of overtime, 30% for each hour of night work between 22:00 and 06:00, and 50% for work on public holidays and weekends.
Employment contracts and working time in Kosovo
| Rule | What it means for you |
|---|---|
| Probation can last up to six months, and either side can end it with seven days’ notice | Fit is tested within a set window |
| The full-time week is 40 hours, including a 30-minute daily break | The paid break is part of the working day |
| Employees get at least 12 hours’ rest between working days and 24 hours’ weekly rest | Rotas are planned around fixed rest periods |
| Up to 8 extra hours can be required when workload rises, but not from pregnant employees, single parents of children under three or employees with disabilities | Peaks are absorbed by the right members of the team |
| Annual leave is at least four weeks, plus one day for every five years of service | Long-serving staff accrue extra leave |
| When a fixed-term contract will not be renewed, the employee must be told 30 days before it ends, or receive 30 more days of employment at full pay | End dates are communicated on time |
Ending employment in Kosovo
An employer can end an open-ended contract only on grounds the Law on Labour recognises, and must give notice based on length of service:
| Length of service | Notice from the employer |
|---|---|
| 6 months to 2 years | 30 days |
| 2 to 10 years | 45 days |
| More than 10 years | 60 days |
An employee resigning gives 30 days’ notice on an open-ended contract and 15 days on a fixed-term one. Where a court finds a dismissal unlawful, the compensation awarded must be at least twice any severance the employee was entitled to.
Kosovo 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 income tax and pension contributions due for past periods | Your Kosovo team is employed under the Law on Labour |
| IP ownership | Rights in work created in the job sit with the Kosovo employer unless the contracts pass them on | Contracts confirm the rights and transfer them onward to your business |
| Client liability for pay and contributions | Without a statutory agency framework, an unclear arrangement can make your business look like the real employer | The contract, pay and compliance stay with Acumen International, and the service agreement sets out each party’s role |
| Equal pay for assigned staff | The Law on Labour prohibits discrimination in pay and conditions | Pay is set against comparable roles on objective criteria before the offer |
| Permanent establishment | An employee who concludes contracts for your company can create a taxable presence in Kosovo | Signing authority stays with your company and is written into the role |
| Exit cost | Notice of up to 60 days and court-ordered compensation of at least twice any severance due after an unlawful dismissal | Grounds and notice are prepared before any decision |
| Sponsor obligations | A foreign employee’s work permit names one employer and cannot be transferred | Acumen International holds the permit as employer and renews it on time |
| Pay transparency | Kosovo is aligning its law with the EU, and EU-based businesses apply the Pay Transparency Directive across their workforce | Pay structures are documented on objective criteria |
Work and residence permits for foreign employees in Kosovo
A foreign national working in Kosovo needs a work permit, requested by the employer before work starts, and a temporary residence permit for employment.
- The employer submits the work permit request with a certificate from the Employment Office confirming that no registered jobseeker in Kosovo meets the job requirements.
- The government sets the number of work permits each year by 15 December for the following year.
- The standard permit is tied to a named employer, profession and area, is valid for one year and is renewed on a request filed one month before expiry.
- After three years on such permits, a foreign employee can obtain a five-year permit that is not tied to one employer.
- Key personnel and executives of foreign companies are among the categories exempt from a work permit.
- The temporary residence permit for employment is decided in about 30 days and needs the contract, health insurance and proof of means.
What Acumen International contributes
- A registered employer to sponsor the permit. The work permit request must come from an employer registered in Kosovo. Acumen International makes that request for your hire, so a foreign specialist can work for your business without your company registering in Kosovo first.
- An offer that clears the labour market test. The job description, qualifications and salary are set out so the Employment Office can certify that no local jobseeker meets the requirements.
- Continuity towards a five-year permit. Because the permit cannot move to another employer, Acumen International renews it on time each year, building the three years of continuous permits that lead to a five-year permit not tied to one employer.
Family members
Family members need their own temporary residence permit, and their own work permit if they intend to work in Kosovo.
Employer cost and income tax in Kosovo
| Charge | Employer | Employee |
|---|---|---|
| Pension contribution to the Kosovo Pension Savings Trust | 5% | 5% |
| Personal income tax | — | 0%, 8% and 10% bands |
Kosovo has no separate social or health insurance contributions on salaries.
Income tax
| Monthly employment income | Rate |
|---|---|
| Up to €250 | 0% |
| €250.01 to €450 | 8% |
| Above €450 | 10% |
Residents are taxed on income from Kosovo and abroad, and non-residents on Kosovo-source income only.
The Global Payroll Calculator adds the employer’s 5% pension contribution to a Kosovo salary and applies the three income tax bands, which makes the full cost of an offer in euros clear before it is made.
Sectors employing through an Employer of Record in Kosovo
- Software and IT services companies employ developers, testers and support engineers, mainly in Pristina.
- Contact centres and business process outsourcing providers hire English- and German-speaking agents and team leaders.
- Construction and infrastructure firms employ engineers and project managers.
- Energy companies developing solar and wind projects need engineers and project staff.
- International organisations and development programmes employ programme managers, specialists and field staff.
Kosovo hiring cases and how they are handled
| Case | What Kosovo rules add | How it is handled |
|---|---|---|
| A developer in Pristina has invoiced you for two years | Full-time work under your direction points to employment | The developer moves onto an employment contract with Acumen International |
| A senior product manager asks for stronger retirement savings | Employer and employee can each add voluntary contributions of up to 15% to the Pension Savings Trust on top of the compulsory 5% | An agreed employer top-up is written into the contract and paid through the monthly Trust contribution |
| A team lead from Turkey relocates to Kosovo | A work permit with labour market certification and a temporary residence permit are both needed | Acumen International files both as the employer before the start date |
| A cloud engineer covers overnight on-call for a global platform | Night hours carry a 30% supplement | The supplement is built into the offer and the rota |
Benefits, payroll and leave in Kosovo
Packages for skilled roles in Kosovo often add private health insurance, meal or transport allowances and voluntary pension contributions above the statutory 5%.
Payroll obligations
| When | What happens |
|---|---|
| Before the first working day | The employee is registered with the Tax Administration and the Pension Savings Trust |
| Every month | Salary is paid in euros, income tax is withheld and pension contributions are paid |
| A month before a work permit expires | The renewal request is filed |
| 30 days before a fixed-term contract ends | The employee is told whether it will be renewed |
Leave entitlements
| Leave | Entitlement | Paid by |
|---|---|---|
| Annual leave | At least 4 weeks, plus 1 day per 5 years of service, after 6 months’ employment | Employer |
| Public holidays | National and religious holidays set by law, with a 50% supplement if worked | Employer |
| Maternity leave | 12 months: 6 at 70% pay, 3 at 50% and 3 unpaid | Employer, then the government |
| Paternity leave | 2 paid days at birth and up to 2 weeks unpaid | Employer |
Sources
- Law No. 03/L-136 on granting permits for work and employment of foreign citizens
- Legal Alert Kosovo, December 2025: minimum wage decision
- Employment and labour law: legal guide to investing in Kosovo
- Employment and labour law in Kosovo
- Kosovo: taxes on personal income
- Kosovo: other taxes
FREQUENTLY ASKED QUESTIONS
Got questions?
We’ve got answers
Have questions about hiring globally? You’re not alone. Below you’ll find 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 Acumen International support multiple countries at the same time?
Yes, our PEO solution is designed to support simultaneous market entry into multiple countries. You can hire in different regions without the administrative burden of setting up local offices.
What level of compliance support do you offer in high-risk jurisdictions?
We provide complete compliance risk assessments, local contract adaptation, tax filing, and continuous legal updates to safeguard your operations in every high-risk market we cover.
How does Acumen manage payroll and employee benefits internationally?
We process unified multi-country payroll in local currencies, calculate mandatory social contributions, and administer compliant statutory and supplementary benefit packages for your global workforce.