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HRsolution » COUNTRIES » Albania

  1. Population:

Albania has a population of approximately 2.8 million people (2023). The population has been declining due to emigration, especially to countries in Western Europe.

  1. Capital:

The capital of Albania is Tirana, which is the political, economic, and cultural center of the country, with a population of around 500,000 people.

  1. Economic Strength:

Albania is a developing economy that has seen consistent growth in recent years. Key sectors include:

  • Agriculture: A significant part of the population is still engaged in farming, with key products including wheat, maize, and olives.
  • Tourism: Albania’s coastline and historical sites attract an increasing number of international visitors.
  • Energy: Albania relies heavily on hydropower for its energy needs, and there is a growing interest in renewable energy development.
  • Manufacturing: Textile and footwear manufacturing are important contributors to exports.

Despite these positive trends, Albania remains one of the poorer countries in Europe, with a GDP of around $19.58 billion USD (2023).

  1. Culture:

Albania has a rich cultural heritage, shaped by influences from Ottoman, Byzantine, and Roman civilizations. Traditional music, dance, and clothing are important parts of Albanian culture, with festivals and holidays that celebrate national pride, such as Independence Day on 28 November. Albania has a strong tradition of hospitality, and family is a central social unit.

  1. Currency:

The official currency of Albania is the Albanian Lek (ALL). Although Euros are often accepted in some tourist areas, the Lek is the standard currency for all transactions.

  1. Health Insurance and Social Security System:

Albania has a public healthcare system that provides basic health services, though it is underfunded and often requires supplementary private healthcare. The Compulsory Health Insurance Fund manages the public healthcare system, and both employers and employees contribute to health insurance.

The social security system in Albania covers pensions, unemployment benefits, maternity leave, and disability benefits. Contributions to the social security system are mandatory for both employers and employees.

  1. Costs for the Employer:

Employers in Albania are required to contribute social security and health insurance for their employees. These contributions include:

  • Social Security Contribution: The employer pays 15% of the employee’s gross salary.
  • Health Insurance Contribution: The employer contributes 1.7% of the employee’s salary, while the employee contributes 1.7% as well.

  1. Salary and Bonuses in Albania:

In Albania, salaries are relatively low compared to Western Europe. Bonuses in Albania are typically performance-based, though not as common or structured as in higher-income countries.

  1. Payslip:

An Albanian payslip includes the following information:

  • Gross Salary
  • Deductions:
    • Income Tax: A progressive tax system with rates ranging from 13% to 23%.
    • Social Security Contributions: The employee pays 9.5% of their gross salary towards social security.
    • Health Insurance Contributions
  • Net Salary

  1. Public Holidays:

Albania observes 13 public holidays per year, including both national and religious holidays. Important holidays include:

  • New Year’s Day (1 January)
  • Independence Day (28 November)
  • Liberation Day (29 November)
  • Christmas Day (25 December)
  • Eid al-Fitr and Eid al-Adha (Muslim religious holidays)

  1. Working Hours:

The standard working week in Albania is 40 hours, spread over five days, usually from Monday to Friday. The maximum allowable daily working hours are 8 hours. Overtime is regulated and must be compensated.

  1. Vacation:

Employees in Albania are entitled to a minimum of four weeks (20 working days) of paid annual leave. Employers may offer more vacation days depending on company policy or collective agreements. Public holidays are in addition to annual leave.

  1. Sick Leave:

Employees are entitled to paid sick leave, with the first 14 days of illness usually covered by the employer. After that, the Social Security Institute provides sickness benefits at a reduced rate. A medical certificate is required for absences longer than two days.

  1. Termination/Severance:

Termination of employment in Albania must follow the Labor Code, which outlines:

  • Notice Periods:
    • For employees with less than six months of service, the notice period is two weeks.
    • For employees with more than six months of service, the notice period is one month.
  • Severance Pay: Employees dismissed due to redundancy or without just cause are entitled to severance pay, which is typically one month’s salary for every year of service.
  • Unfair Dismissal: Employees can claim unfair dismissal, which may lead to compensation if proven.

Albania is a rapidly developing country with strong cultural traditions and a growing economy. It is increasingly integrating with European markets while facing challenges such as infrastructure development and public service improvements.

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