Southern Tosk and Northern Gheg

UTC+2:00

Undoubtedly, payroll is a critical process for any organization. Pay cycle in Albania refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

The payroll cycle in Albania is generally a monthly cycle, with wages paid by the last working day of each month.

There is no statutory requirement to pay on the 13th or 14th month.

From April 1, 2023, the national minimum wage in Albania is 40,000 ALL.

Any work done for more than 40 hours will qualify as overtime, which is compensated at 125% of the regular wage. The employer can compensate employees who work on weekends and public holidays at 150% of their usual salary. Instead of paying the employee more, the business may choose to give them time off.

Employee personal data should be held in private physical or electronic files. Generally, such data should be retained until the termination of the employment relationship.

However, certain personal data, such as salaries and other work-related benefits, personal income tax, social security, and health contributions paid for employees, should be kept for five years as a requirement of the tax legislation.

Regarding work-related accidents and illness, employers should keep a separate registry that should be kept for five years. After the lapse of such a term, the registry is archived at the Regional Directory of Social Security.

There are 13 public holidays (Official Holidays) and 10 (Not official Holiday)

If a non-working public holiday happens during the weekend, the Monday after would be a holiday.

Official Holidays:

January 1: New Year's Day
January 2: Day after New Year's Day
January 3: Day after New Year's Day (in lieu)
March 14: Summer Day
March 22: Nowruz
April 9: Easter (Catholic)
April 10: Easter Monday
April 16: Orthodox Easter Day
April 17: Orthodox Easter Monday
April 21: Eid-al-Fitr
May 1: Labour Day
June 28: Eid al-Adha
September 9: Saint Teresa Canonisation Day
November 28: Independence Day
November 29: Liberation Day
December 8: National Youth Day
December 25: Christmas Day

The minimum annual leave entitlement has been increased from four calendar weeks to 22 business days, effective August 9, 2024.

For up to 14 days, the employer must provide at least 80% of the employee's income without the benefit of social insurance. When sick leave exceeds 14 days, the additional days are covered by social insurance for a maximum of 6 months. If they have been covered for up to 10 years, employees on sick leave are entitled to 70% of their average daily net wage from the previous six months and 80% if they have been protected for more than 10 years.

After working continuously for a year, a person is eligible for maternity leave. 35 days of leave before the delivery and 63 days following the birth. 390 days of maternity leave are given to mothers who give birth to multiple children. The employer must either promise 2 hours of paid leave each day for a year (to feed the baby) or reduce the workday by 2 hours without affecting pay if a woman wishes to return to the workforce after the first 63 days.

After working continuously for a year, a person is eligible for parental leave. An employee is entitled to 15 days of paid leave each year for children under three, while children over three are entitled to 12 days. A worker may also take an extra 30 days of unpaid leave each year.

Bereavement leave: Employees are granted 10 days of absence in the case of the death of a spouse or close family member.

Marriage leave: In the event of an employee’s marriage, the employee can take five days’ leave.

There is currently no statutory paternity leave in Albania. Fathers to be entitled to three days of paid leave.

Following should be the notice requirements:

• 1 month notice during the first two years of employment
• 2 month notice during 2 to 5 years of employment
• 3 month notice after 5 years of employment

A worker is entitled to 15 days of severance compensation if they have worked for the company for over three years. The employee must then be promptly removed from the employer's payroll and firm by the employer after notifying the Labor Office and Tax Office.

• Background checks can be done by employers in Albania but are strictly regulated by the EU General Data Protection Regulation. The employer must have a legitimate reason for the check, the check must be necessary, and the employee must be informed before and after the check. The results of the check may only be saved for the period necessary for the screening.

• Regarding certain functions, an employer can ask the applicant to request a certificate of good behavior at the Ministry for Security and Justice, which declares that the applicant has not committed criminal offenses that are relevant to the performance of the work.

• Background checks can be outsourced to third parties, but the applicant must be informed about this.