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Hire in Albania without an entity

Albania's tech scene has grown rapidly in Tirana over the past five years. The country offers EU-aligned labour regulation, a young workforce, and government investment in IT education. Many engineers are bilingual Albanian/English, with significant Italian fluency in coastal regions.

Capital
Tirana
Currency
ALL · EUR (commonly used in tech contracts)
Timezone
Europe/Tirane (CET, UTC+1)
Population
2.76M
English
EF EPI 2024: Moderate-to-high proficiency band
IT workforce
Estimated 12,000+ IT professionals (AITA / Ministry of Economy reports)
EU status
EU candidate; accession negotiations opened in 2022

Labor law in Albania

Standard work week
40 hours across 5 working days; 8 hours per day standard (Labour Code, Article 78).
Probation max
Up to 3 months for indefinite contracts (Labour Code, Article 142).
Annual leave (min)
Minimum 4 calendar weeks (20 working days) per year (Labour Code, Article 92).
Sick leave (paid)
Employer pays 80% of average daily salary for the first 14 days of certified incapacity. From day 15 the Social Insurance Institute (ISSH) covers the salary compensation per its rules.
Public holidays
13 statutory days observed nationally (mix of national, religious, and civic holidays).
Notice period (min)
Tenure-based: 2 weeks (during probation), increasing with service to a minimum of 1 month for indefinite contracts; longer for senior or long-serving employees per the Labour Code.
Severance
Severance pay equal to half of the latest monthly salary for every full year of service (Labour Code, Article 145). No severance for termination for cause.

How payroll works

Personal income tax (PIT)
Progressive PIT: 0% up to ALL 50,000/month; 13% on ALL 50,001 – 200,000; 23% above ALL 200,000. Annual employment income up to ~ALL 600,000 is effectively tax-exempt at lower brackets (General Directorate of Taxation).
Social contributions — employer
Employer-side social-insurance contribution: 15% of gross + 1.7% health insurance = 16.7% of gross paid by the employer on top of gross.
Social contributions — employee
Employee-side social-insurance contribution: 9.5% of gross + 1.7% health insurance = 11.2% of gross withheld from the employee. Total combined social = 27.9%.

Statutory minimum monthly salary: 50,000 ALL gross (effective 1 January 2026, up from 40,000 ALL). Filings due monthly by the 20th. Albania allows EUR-denominated contracts but local payroll runs in ALL converted at the Bank of Albania reference rate.

Average gross salaries — Albania

Monthly gross amounts in local currency. Real employer cost = gross + employer social contributions (see above).

RoleRange (gross)
Software Engineer (mid)90,000 – 180,000 ALL
Software Engineer (senior)180,000 – 320,000 ALL
Customer Support (EN/IT)55,000 – 110,000 ALL
Accountant70,000 – 140,000 ALL
Sales Development Rep60,000 – 120,000 ALL
Graphic / UX Designer70,000 – 150,000 ALL

Local entity vs. Merot EOR

Direct entityMerot EOR
Setup time3–6 months5 business days
Local lawyerRequiredNot required
Local accountantRequired (€500–1,500/mo)Included
Compliance burdenYoursOurs
Office + IT equipmentYou arrangeIncluded optionally
Exit / wind-down3–6 months + fees30 days

Public holidays in Albania

Jan 1-2
New Year's Days
Mar 14
Summer Day
Mar 22
Sultan Nevruz Day
Apr-May
Catholic Easter (movable)
Apr-May
Orthodox Easter (movable)
May 1
International Labour Day
Variable
Eid al-Fitr (movable)
Variable
Eid al-Adha (movable)
Sep 5
Day of Saint Mother Teresa
Nov 28
Independence Day (Flag Day)
Nov 29
Liberation Day
Dec 8
National Youth Day
Dec 25
Catholic Christmas Day

Frequently asked questions — Albania

Does Albania use the Euro?

No — official currency is the Albanian Lek (ALL). Tech contracts are often denominated in EUR with monthly conversion at the Bank of Albania reference rate. Local payroll, taxes and social filings run in ALL.

What's the minimum gross salary I can offer?

From 1 January 2026 the statutory minimum is 50,000 ALL gross/month (~€420), up from 40,000 ALL. Engineers, sales and design roles typically pay several multiples of this — see the salary table above.

How does Italian fluency vary?

Italian is widely understood — particularly in central/coastal regions due to historical TV exposure and economic ties. Useful for support and sales roles serving Italian customers.

What's the total employer cost?

Gross salary + 16.7% employer-side social = ~117% of gross. Lower than Western EU; comparable to Macedonia's gross-first model when measured in true cost.

What language does the team speak?

Albanian primarily. English is the working language across virtually all tech and BPO firms; Italian is common in Tirana and the south; some German and French in younger graduates.

How does sick leave work?

Employer pays 80% of average daily salary for the first 14 days; from day 15 the Social Insurance Institute (ISSH) covers.

How long is notice for an indefinite contract?

2 weeks during probation; minimum 1 month for indefinite contracts after probation; longer with tenure per the Labour Code.

Do you supply equipment for hires in Albania?

Yes — sourced from Tirana distributors or shipped from our Skopje office. Day-one delivery is standard.

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