Job market in Albania

Openness and a willingness to collaborate internationally are often key elements in a country's economic success. And the fact that Albania has a population that has demonstrated its ability to learn and effectively use foreign languages could be a major strength in an increasingly interconnected global economy.

But how does the job market work?

Relationships between workers and employers are governed by individual employment contracts pursuant to Law 7961 of 12 July 1995, the "Labour Code," which has been partially aligned with the main EU directives in force that protect workers' rights.

Employment contracts and types

Employment contracts in Albania are primarily individual and are regulated by the Labor Code. These contracts establish the conditions of employment, including working hours, remuneration, and the rights and duties of the employee and employer. They can be fixed-term or indefinite, according to the following types:

1. Permanent contract

2. Fixed-term contract

3. Project or service-specific contract

4. Internship contract

It is important to note that the Labour Code also provides for the protection of workers' rights, including the rights to workplace safety, fair pay, paid leave, protection against discrimination, etc.

Duration of work

According to the Labor Code, working hours generally must not exceed 40 hours per week. However, exemptions or specific provisions may apply for certain sectors or categories of workers.

It is important to note that the Labor Code also includes provisions regarding breaks during the working day, daily rest and paid holidays, and overtime work to ensure the well-being and safety of workers.

 

Termination of employment relationship

Termination of an employment relationship, whether by the employer or the employee, can occur in various ways and must be handled in accordance with the employment contract and applicable labor legislation. During the probationary period, both the employer and the employee may terminate the contract with notice or compensation, with five days' prior written notice.

Here are some of the most common ways to terminate an employment relationship:

1. Voluntary resignation

2. Dismissal

3. Expiration of a fixed-term contract

4. Mutual consent

Contribution obligations for pensions and national health service

According to Law No. 7703 of May 11, 1993, "On Social Security in the Republic of Albania," and Law No. 7870 of October 13, 1994, "On Health Care in the Republic of Albania," employers and employees are required to pay mandatory social security and health care contributions. All personal and employment-related taxes and contributions must be reported and paid on a monthly basis.

Under current law, employers must declare and pay social security and healthcare contributions for each employee, amounting to 27.9% of the employee's monthly salary. By law, the minimum salary is 50,000 lekë, or 517 euros; however, the total cost would be 603 euros.

The average salary in Albania can vary significantly depending on the industry, experience, position, and location. However, according to the most recent statistics available, the average gross monthly salary in Albania in 2021 was approximately 55,000–60,000 lekë per month (total cost 64,185–70,020), which is equivalent to approximately 450–500 euros (623–679 euros) at the current exchange rate .

Certainly, paying taxes on employee income has several economic benefits. However, the Labor Code clearly defines the rights and obligations of employees and employers, providing a legal basis for labor relations. This helps reduce conflict and ensure a more equitable and transparent work environment, which in turn can have economic benefits, such as reduced turnover and a better corporate climate.

Last but not least, there appears to be a strong historical and cultural bond between Albania and Italy, which contributes to cooperation and collaboration between the two countries, both culturally and professionally. The presence of a young and dynamic workforce in Albania, with advanced language skills, could certainly be an advantage in attracting foreign investment and fostering international collaboration.

Brisilda Myftaraga

Finance & Administration Manager

Head Office - Rogai & Partners Sh.PK

For any further information, please contact Rogai & Partners Sh.PK and Rogai & Partners stp Srl

www.studiorogai-al.com and www.studiorogai.it