Hiring in Albania

The terms set out role, salary in ALL, working time, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

Contracts are normally drafted in Albanian, often with an English version alongside for international employers.

Fixed-term contracts need an objective reason tied to temporary work, and repeated renewals can convert them into indefinite contracts, so most EORs default to indefinite terms.

Set probation from day one. It can be shortened or waived by agreement, but never extended.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Overtime is paid at no less than 1.25 times the hourly rate, or compensated with time off in lieu.

There is no earnings threshold that takes professional hires out of scope, so overtime stays a statutory matter whatever the salary. The employer must keep records of hours worked, so agree how overtime is approved before the role starts.

The 22-day floor came in during 2024, and market practice for professional roles sits at or a little above it, so budget for at least 22 days. A public holiday that falls on a weekend moves to the next working day.

The employer pays sick leave at 80% of salary for the first 14 days, after which social insurance takes over. Maternity leave runs up to 365 days and is funded by social insurance rather than the employer, so confirm whether the EOR tops anything up.

Outside probation the employer must state its reasons and follow a fixed procedure: written notice of the intended dismissal, a meeting at least 72 hours later where the employee can respond, then a written decision. Skipping a step costs two months' salary on top of any other claim.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave and seniority severance of at least 15 days' salary per full year of service. Unjustified dismissal awards can reach 12 months' salary, so keep a documented reason.

Private medical cover is not mandatory, though international employers often add it for professional roles. There is no statutory 13th salary.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer contributions add 16.7% on top of gross salary, with the 15% social insurance share capped at a monthly salary ceiling. That is before the EOR fee.

Registration timing is the trap. Every new hire, probation included, must be declared to the tax authority at least one day before they start work, so build that into the onboarding timeline.

Ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all, because the permit is tied to the local entity that signs the employment contract, not to you.

Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Transfers to the EU and other countries on the Commissioner's adequacy list need no extra safeguards; elsewhere, standard contractual clauses or similar tools apply.

Ask where payroll data is hosted and who in the partner chain can see it.

Incorporation here is quick and inexpensive, but the running cost is the point: accounting, monthly payroll and tax filings, fiscalisation compliance and annual reporting set an annual floor. Shareholders who also act as administrators count as employees for contribution purposes.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.