Hiring in Kosovo

The contract sets out role, salary in EUR, 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 or Serbian, often with an English version alongside for international employers.

Fixed-term contracts are permitted, but one renewed for more than 10 years in total converts to indefinite, and most EORs default to indefinite terms.

Set probation from day one. Six months is the statutory ceiling, so there is no room to extend beyond it.

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 1.3 times the hourly rate, or 1.5 times on weekends and public holidays, and is capped at 8 hours a week.

Professional hires are covered too, so track hours rather than assume a salaried exemption. Put the position in writing.

Entitlement rises by one day for every five years of service, so budget for the uplift on long-tenure hires.

Paid sick leave covers up to 20 working days a year at full salary, funded by the employer. Maternity leave runs 12 months: the employer pays 70% of basic salary for the first six, the government covers the next three and the last three are unpaid, so confirm the EOR has priced in the employer share.

Dismissal needs a valid reason, such as redundancy, poor performance or misconduct, and written notice. Severance is tied to redundancy and collective dismissals, not to exits for conduct or performance, on a tenure scale that reaches seven months' pay.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave and any contractual severance. Pregnant employees and those on maternity leave are protected from dismissal, and performance cases should start with a written warning and time to improve.

Public health insurance is not yet mandatory, so private medical cover is the standard benefit for professional roles.

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

Employer contributions add 5% on top of gross salary for local hires. That is before the EOR fee.

Secondary employment is the trap. Income from a secondary employer is taxed at a flat 10%, so confirm the EOR is declared as the employee's primary employer.

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 a named employer with a registered business in Kosovo.

The Law on Foreigners has been fully enforced since March 2026, so any stay beyond 90 days needs a residence permit. Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Transfers to EU countries are straightforward, but other destinations may need approval from the Information and Privacy Agency.

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

Incorporation here is quick and needs no minimum capital for a limited liability company, but the running cost is the point: a managing director, local accounting, monthly tax and pension filings, annual financial statements and payroll software set an annual floor.

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