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Albania has 16.7% employer social insurance + 1.7% health = 18.4% total employer contributions, progressive income tax (0–23%), ALL 40,000/month minimum wage, and a growing Tirana tech sector. EU candidate country. Rippling handles DPT, ISSH, and Albania Labour Code compliance.
Albania is a small Western Balkans EU candidate state with a rapidly growing technology and IT services sector in Tirana. Albania has a young, educated, increasingly English-proficient workforce and competitive costs relative to EU markets. Albania uses the Albanian lek (ALL). EU accession negotiations are ongoing and driving progressive labor law alignment.
| Contribution | Rate | Notes |
|---|---|---|
| Social insurance (employer) | 16.7% | On gross salary up to ALL 176,416/month ceiling |
| Health insurance (employer) | 1.7% | On gross salary; no ceiling |
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| Contribution | Rate | Notes |
|---|---|---|
| Social insurance (employee) | 11.2% | On gross salary up to ALL 176,416/month ceiling |
| Health insurance (employee) | 1.7% | On gross salary; no ceiling |
| Income tax (tatimi mbi të ardhurat) | 0–23% | Progressive two-bracket; withheld monthly |
| Annual Income (ALL) | Rate |
|---|---|
| Up to 1,800,000 (ALL 150,000/month) | 0% |
| 1,800,001–2,160,000 (ALL 180,000/month) | 13% |
| Above 2,160,000 | 23% |
Monthly withholding by employer; remitted to DPT.
Notice: 1 month (under 2 years) to 3 months (5+ years). Severance (redundancy): 1 month's average salary per year of service (minimum 1 year). Labour Inspectorate notification for collective redundancies.
Albania has a two-bracket progressive income tax: 0% on annual income up to ALL 1,800,000/year (ALL 150,000/month); 13% on income from ALL 1,800,001–2,160,000/year; 23% on income above ALL 2,160,000/year. This structure means most lower-to-mid-income employees pay 0–13%, making Albania's effective tax burden relatively low. Employer withholds monthly and remits to DPT.
Albania's minimum wage is ALL 40,000/month gross (2024). Albania has been increasing its minimum wage as part of EU accession commitments. For technology and professional roles in Tirana, market salaries are substantially above the minimum.
Albania is an EU candidate country with accession negotiations ongoing. Tirana has a growing technology and IT outsourcing sector, with low costs relative to EU markets and a young, educated workforce with growing English proficiency. Albania is increasingly popular for European companies seeking Western Balkans tech talent adjacent to EU markets.
Notice: 1 month (under 2 years); 2 months (2–5 years); 3 months (5+ years). Severance for redundancy: 1 month's average salary per year of service (minimum 1 year). Collective redundancy requires Labour Inspectorate notification. Albanian Labour Code is progressively aligning with EU labor law as part of accession.
