COUNTRY GUIDE
A short guide to building a dedicated offshore team in Albania
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Tirana
Albanian
2.83 million
GMT+2
19,000
Albanian Lek (ALL)
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$48.45 million
$1.23 million
Tirana
Albanian
2.83 million
GMT+2
19,000
Albanian Lek (ALL)
$48.45 million
$1.23 million
Albania, located in Southeast Europe, is an emerging force in the global IT sector, with an education system contributing around 3,500 engineering graduates annually, ready to delve into the tech industry.
Tirana, the capital, serves as the heart of Albania's technological momentum, brimming with innovative endeavors. The city is a hub for tech events, startup ecosystems, and R&D activities, drawing in talent adept in various tech fields, from software development to digital transformation.
The Albanian IT sector is experiencing a robust rise, with an impressive CAGR of 12.71%, highlighting the country's burgeoning role as a potent IT service provider on an international scale.
Albania's strategic geographical positioning, cost-competitive structure, and culture that embraces technological innovation are rapidly making it a desirable destination for businesses seeking efficient software development services. The country's dedication to tech advancements, coupled with a skilled workforce and a flourishing IT market, positions Albania as an attractive locale for technology investments and collaborative endeavors.
Payroll Cycle
In Albania, the payroll cycle typically operates on a monthly basis, and payment is made 1 time per month according to the country law Nonetheless, there are exceptions for some employees compensated hourly, weekly, or daily; these individuals tend to receive their payment bi-weekly.
Employer Taxes
16.70%
Overtime Pay
Any work conducted beyond the standard 40-hour week must be compensated at a rate that's at least 25% higher than the standard pay. For work done over weekends or public holidays, the minimum compensation increases to 50% above the standard rate. Alternatively, overtime can be counterbalanced with equivalent time off work.
While collective agreements and contracts oversee overtime, the labor code mandates that an employee cannot exceed 200 overtime hours in a single year. According to the Albanian Labor Code, if an employee has already worked 48 hours in a given week, the employer cannot require overtime, barring exceptional situations.
These exceptional periods cannot extend beyond four months, and an employee's average work time during these periods must not surpass 48 hours per week.
Additional limitations apply to overtime, especially concerning night workers, the nature of the tasks performed, and the individuals assigned to perform them, such as pregnant employees and those younger than 18 years.
Paid Leave
In Albania, paid leave regulations are outlined in the Albanian Labor Code. It specifies that an employee, after a complete year of service, is eligible for 28 calendar days (equivalent to 20 working days) of paid leave. This leave should be utilized within the operational year or in the first quarter of the subsequent year. Employees with less than a year's tenure are granted leave days on a pro-rata basis.
Employers are required to inform employees of their leave approval at least 30 days prior to the commencement of their vacation.
Sick Leave
An employee is entitled to sick leave for the full duration of their illness, up until a doctor verifies their fitness to resume work. During the initial 14 days of illness, it's the employer's responsibility to compensate the employee with 80% of their regular salary. Starting from the 15th day, the employee receives compensation from social insurance, amounting to 70% of their average earnings over the previous six months.
Public and Provincial Holidays
Notice Period
In Albania, the stipulated notice periods are:
13th Month Bonus
There's no legal obligation to provide a 13th-month salary payment.
Establishing a separate business entity in Albania, where you intend to recruit a team, can be time-consuming and lead to substantial legal costs.
Concurrently, understanding Albanian labor laws and meeting employee expectations can be intricate and challenging. It's further complicated by the necessity of obtaining precise and current employment information for Albania. Additionally, managing contracts and keeping track of invoices via email and spreadsheets can lead to disorganization and mistakes.
In this scenario, compliance is of utmost importance, and it's crucial to abide by Albanian regulations, especially concerning taxes and legalities.
ALLSTARSIT simplifies this process by offering a comprehensive solution for locating and hiring employees in Albania, managing HR and payroll, and ensuring compliance is automated. We make the process straightforward and free from complications.
Choose the right expert professionals required for your specific project, saving time and wasted effort.
This service enables software development companies worldwide to meet any technical needs outside their core skill set by adding specialized staff on demand while retaining control of the project's specifications and scope.
Establish R&D / Tech Support / QA & Testing / DevOps / Data Entry Centers in your chosen location.
Forget about investing in facilities, equipment, technology, or human resources. We manage all necessary operations as your specialist. This can help you save money and resources, all while reducing frustration and simplifying internal processes.
Use ALLSTARSIT as your EOR / CM to easily hire employees in new countries without setting up a legal entity.
We act as the employer for your new hire, handling all HR, payroll, tax, and compliance requirements on your behalf, while you maintain control of their workload.
Effortlessly Access Expert Tech Support for Your Projects
Our Tech Support service provides companies worldwide with access to the best technical experts tailored to their specific project needs. Whether you require troubleshooting, maintenance, or specialized assistance, we ensure that you have the right professionals on hand to support your endeavors effectively.
Maximize Your Customer Satisfaction Level with Our Customer Support Service
Access tailored customer care solutions for your business needs. Our expert team is dedicated to addressing inquiries, resolving issues, and delivering personalized assistance. Say goodbye to challenges and hello to exceptional customer care with us.
Contact us, and we’ll help you hire the best tech talent in Albania
