---
title: "Albania Employer Cost Breakdown 2026 | Social Security Cap"
description: "Albania employer cost 2026: 16.7% social security capped at ALL 186,416/month, 22 days paid leave. What an Albania hire really costs."
canonical: https://www.teamed.global/country-hiring-guides/albania/cost-breakdown
---

Albania · Cost breakdown child

Served by Teamed vetted partner-entity network in Albania

# How much does it really cost to *hire in Albania* in 2026?

Employer social security in Albania is 16.7%, but it only applies on earnings up to ALL 186,416/month. Above that ceiling, you pay nothing extra. That wage cap makes Albania's real employer loading predictable and lower than most European markets once salaries cross the threshold.

Last reviewed 13 June 2026 · Albania guide

![A view of Tirana's Skanderbeg Square at golden hour, with the colourful buildings and the Et'hem Bey Mosque tower reflecting warm evening light.](/images/country-guides/albania-cost-breakdown.webp)

Illustration · Tirana, Albania

Answer.cite this

Albania's employer social security rate is 16.7%. It covers social insurance and health. Contributions stop once monthly earnings reach ALL 186,416/month. Above that cap, no further employer social cost applies.

Income tax is withheld from the employee at 13% on earnings up to ALL 2,040,000/year and 23% above that. The employer withholds both taxes and remits them by the 20 daysth of the following month.

Every Albania employee gets 22 days paid working days of leave per year under the Labour Code amended in 2024. Statutory sick pay is employer-funded for 14 days at 80% of salary. A typical Albania hire lands at around 116 to 117 percent of gross salary at mid-market salary levels.

![A notebook and pen on a wooden desk with Albanian currency notes beside them, in a bright Tirana office.](/images/country-guides/albania-cost-breakdown-polaroid-1.webp)

Adding it up

## The headline: what an Albania hire actually costs

Start with the gross salary. Add 16.7% employer social security on earnings up to ALL 186,416/month. Above that ceiling, the social cost stops.

The table below shows illustrative totals at an ALL 600,000 monthly salary. These are computed from verified statutory rates and labelled illustrative. They are not statutory figures.

The social contribution cap is Albania's most important cost-planning fact. At lower salary levels the 16.7% rate applies in full. At higher salaries, the cap means the employer social cost is fixed, not open-ended.

| Line | Illustrative cost on ALL 600,000/month salary | Source |
| --- | --- | --- |
| Gross salary | ALL 600,000 | Contract |
| Employer social security at 16.7% on ALL 186,416/month cap (salary is above cap so rate applies only on capped amount) | ALL 31,131 (illustrative) | [PwC Tax Summaries Albania: Other taxes](https://taxsummaries.pwc.com/albania/individual/other-taxes) |
| Income tax withheld (employee deduction, not employer cost) | Withheld from employee pay | [PwC Tax Summaries Albania: Personal income](https://taxsummaries.pwc.com/albania/individual/taxes-on-personal-income) |
| Statutory annual leave: 22 days paid working days built into salary cost during absence | Included in gross salary | [KPMG Albania: Labour Code amendments 2024](https://kpmg.com/al/en/insights/2024/08/recent-amendments-to-the-labor-code.html) |
| Sick pay reserve: 14 days at 80% of daily salary (illustrative average) | ~ALL 3,000 (illustrative) | Based on verified statutory rates |
| **Total illustrative employer cost** | **~ALL 634,131 before the Teamed fee** | **~106% of gross (illustrative)** |

These figures are illustrative. They are computed from the 16.7% statutory rate applied to the ALL 186,416/month wage ceiling, confirmed for 2026. They are not statutory numbers. Actual costs vary with the salary level relative to the cap, leave usage, and any employer-provided benefits.

Add the Teamed fee from $599 per employee per month and the total rises. Use the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to run your own salary figures in any currency.

1. Start with gross salary Confirm the agreed gross monthly salary. Check it clears the minimum wage floor. This is the number every other line builds on.
2. Apply social security to the capped base Calculate the employer social contribution on monthly earnings up to the wage ceiling. Above the ceiling, the social cost stops. Record the fixed monthly amount.
3. Model income tax withholding Apply the two-bracket rate to gross salary and set the withheld amount aside for monthly remittance. This reduces the employee's net pay but is not an additional employer cost.
4. Allow for leave and sick pay Budget the annual leave days as salary cost during absence. Add a reserve for the employer-funded sick pay window. These are the main variable costs above the base salary.
5. Check for severance and notice exposure Model the notice period payroll cost and the severance formula for any hire likely to reach the qualifying service threshold. Both are predictable once the tenure is known.

## Employer social security: the rate and the cap

The employer pays 16.7% in total social contributions. This covers social insurance (15%) and health insurance (1.7%).

Contributions apply only on earnings up to ALL 186,416/month. Above that ceiling, no further social cost applies. This cap is the key fact for budgeting senior hires.

PwC Worldwide Tax Summaries · Albania Individual: Other taxes

The total employer social security rate in Albania is **16.7%** (15% social insurance plus 1.7% health insurance). Contributions apply on monthly earnings up to the wage ceiling of **ALL 186,416/month**. Above that ceiling, no further employer social contributions are due.

Source: [PwC Tax Summaries Albania: Other taxes (social security)](https://taxsummaries.pwc.com/albania/individual/other-taxes)

### How the wage ceiling changes the maths

For a hire at or below the wage ceiling, the employer social cost is 16.7% of gross. For a hire above the ceiling, the social cost is fixed at 16.7% of ALL 186,416/month regardless of how much higher the salary goes. A senior hire at ALL 1,000,000 per month pays the same social contribution as one at the ceiling.

### Employee side for context

The employee contributes 11.2% of earnings, also capped at the same ALL 186,416/month ceiling. Their contributions cover social insurance (9.5%) and health insurance (1.7%). The employer withholds this from the employee's gross pay and remits it alongside the employer portion by the 20 daysth of the following month.

### No separate pension contribution

Albania does not operate a separate mandatory occupational pension scheme. Old-age, disability, and survivor benefits are bundled inside the unified state social insurance system. The employer social rate of 16.7% covers all of these. There is no additional pension matching contribution on top.

## Income tax: two brackets, withheld monthly

Albania uses a two-bracket income tax. Earnings up to ALL 2,040,000/year are taxed at 13%. Earnings above that are taxed at 23%.

The employer withholds income tax from the employee's gross pay each month. This is not an additional employer cost. It reduces the employee's net pay.

### How the brackets work

Income tax applies to all employment income. There is no personal allowance or zero-rate band in Albania. The lower rate of 13% applies on all earnings from zero up to ALL 2,040,000/year (about ALL 170,000 per month). The higher rate of 23% applies on income above that threshold, confirmed by the [Albanian Income Tax Law via PwC Tax Summaries](https://taxsummaries.pwc.com/albania/individual/taxes-on-personal-income).

| Annual income bracket | Rate | Illustrative monthly tax on ALL 600,000/month gross |
| --- | --- | --- |
| ALL 0 to ALL 2,040,000/year | 13% | ALL 22,100 on the first ALL 170,000 (illustrative) |
| Above ALL 2,040,000/year | 23% | ALL 99,100 on ALL 430,000 above threshold (illustrative) |
| **Total income tax withheld** |  | **~ALL 121,200 (illustrative, employee deduction)** |

All figures in this table are illustrative. They are computed by applying the 13% and 23% verified rates to the stated brackets. They are not statutory figures and do not constitute advice. Verify the current brackets with the Albanian Tax Administration before relying on specific numbers.

### Filing and remittance

Payroll is run monthly. The employer must remit all withheld income tax and social contributions to the tax authority by the 20 daysth of the following month. There is no separate real-time reporting obligation, but late payment attracts interest under the Albanian Income Tax Law.

### Minimum wage reference

The national minimum monthly wage is ALL 50,000/month, effective from 1 January 2026. This is the floor for all employment contracts. Income tax at 13% applies from the first dram earned, including at minimum wage, because there is no zero-rate band.

## Statutory leave: the cost most buyers miss

Every Albania employee gets 22 days paid working days of leave per year. This was increased from 20 to 22 working days by Law No. 91/2024, in force from August 2024.

Statutory sick pay is employer-funded for 14 days at 80% of the employee's average daily salary. After that, the state social insurance system takes over.

### Annual leave

The 22 days annual leave entitlement is set under the [Albanian Labour Code as amended by Law No. 91/2024](https://kpmg.com/al/en/insights/2024/08/recent-amendments-to-the-labor-code.html). Unlike the UK model, Albania counts annual leave and public holidays separately. Annual leave is in working days. Public holidays fall on top. The total paid time off is substantially above most European markets on a calendar-days basis.

### Statutory sick pay

The employer pays 80% of average daily salary for the first 14 days of any sick absence. After that, the state social insurance fund covers the cost. The employer-funded window is the real cost exposure. At most salary levels it is modest, but short illness can concentrate across a team and become material in aggregate.

### Maternity leave

Statutory maternity leave is 365 days calendar days in total. The first 14 days after birth are funded at 80% of average salary by the state social insurance scheme. The remainder of the leave is funded at 50% of average salary, also via the state. The employer does not top up either period unless the contract requires it. Maternity pay is not a direct employer cost for the main leave duration; it flows through the social insurance fund.

### Working week

The standard working week is 40 hours under the Albanian Labour Code. Overtime is permitted with additional pay. There is no annualised hours exemption for professional roles. Budget any expected overtime as a separate line if roles routinely exceed the standard week.

## The costs nobody quotes you upfront

Albania's headline loading is modest. But three things can add up quietly: severance after three years of service, the notice period payroll window before exit, and the wage-base conflict that means the cap figure carries some uncertainty.

None of these are hard to model. All of them can be planned before the offer is made.

### Severance after three years

An employee with at least 3 years of continuous service is entitled to severance on termination without cause. The rate is 15 days of wages per completed year of service, capped at 12 months of total salary. A five-year hire costs five times 15 days of salary on exit. Include it in any scenario where a hire might not reach a natural end-point in the first few years.

### Notice period payroll cost

Once probation ends, the employer must give at least 14 days written notice for a hire with under six months of service. Longer-serving employees attract more: 30 days for up to two years, 60 days for up to five years, and 90 days for over five years. During notice, the employee remains on full payroll. That window is a real cost and belongs in any exit model.

### Wage-base ceiling: a known data point to verify

The social security contribution ceiling of ALL 186,416/month is the figure used in this guide, corroborated by multiple sources including PwC and HLB Albania. One tier-1 government source cited a different figure. If you are budgeting for high-salary hires where the ceiling matters most, verify the current cap directly with the Albanian tax authority before finalising your model.

### Probation as a cost control

The maximum probation period is 3 months under the Albanian Labour Code. During probation, either party can end employment with 5 days written notice. A hire that is not working out during probation carries a very low exit cost. That window matters for total cost planning on a new market entry.

## How Teamed handles Albania employment costs for you

Teamed becomes your legal [employer of record](/lp/employer-of-record) in Albania for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency.

Payroll, social security contributions, income tax withholding, and the full Albania employment compliance stack run on **one platform**.

**Real HR and legal experts** handle your Albania hires from the first offer letter through every monthly filing and annual leave calculation. **An actual person**, not a chatbot or a pooled queue. There is **no setup fee** and **no exit fee**. Every employer cost **passes through at cost, itemised** on every invoice. You see the social security line, the income tax withholding line, and the sick pay line. Nothing is hidden inside the management fee.

EOR payroll, contractor onboarding, and entity setup all live on **one platform**. An Albania contractor who converts to payroll keeps their record. That same employee can **graduate** from EOR to your own Albania entity without switching systems. EOR is the right structure for a first Albania hire, **until it isn't**. Teamed does not lock you in. Start from the Albania hiring overview or run the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to see the full picture.

## Frequently asked questions

What does it cost to hire someone in Albania in 2026?

An Albania hire typically costs 106 to 117 percent of gross salary in direct employer cost, depending on the salary level relative to the contribution ceiling. Employer social security is 16.7% on earnings up to ALL 186,416/month. Above that ceiling, no further social cost applies. Annual leave of 22 days working days is built into the gross salary cost during absence. Add the Teamed fee from $599 per employee per month for the full picture.

What is the employer social security rate in Albania in 2026?

The total employer social security rate is 16.7%, covering 15% social insurance and 1.7% health insurance. This rate applies on monthly earnings up to ALL 186,416/month. Above that ceiling, no further employer social contributions are due. There is no separate mandatory pension contribution on top of this rate.

What is the income tax rate in Albania in 2026?

Albania uses two income tax brackets. Earnings up to ALL 2,040,000/year are taxed at 13%. Earnings above that threshold are taxed at 23%. There is no personal allowance or zero-rate band. The employer withholds income tax monthly and remits it by the 20 daysth of the following month.

What statutory leave must an Albania employer provide?

Every Albania employee is entitled to 22 days paid working days of annual leave per year, increased from 20 days by Law No. 91/2024. Statutory sick pay is employer-funded for 14 days at 80% of average daily salary. Maternity leave is 365 days calendar days in total, funded through the state social insurance scheme at 80% for the first period and 50% for the remainder.

When does severance become payable in Albania?

Severance is payable when an employee has at least 3 years of continuous service and is terminated without cause. The rate is 15 days of wages per completed year of service. Total severance is capped at 12 months of salary. A hire of under three years attracts no statutory severance obligation on termination.

Teamed Legal Operations

The social security ceiling is the number Albania buyers always miss. They see the 16.7% rate and multiply it by the full salary. That is wrong above the cap. The cost is fixed at the cap amount regardless of how high the salary goes. For senior hires, the real loading is lower than the rate alone suggests, and it gets better the higher the salary.

A note from Tom Price-Daniel

Albania's employer social rate is 16.7%, but it stops at ALL 186,416/month. Above that ceiling, the cost is fixed.  
Add 22 days days of leave and a two-bracket income tax, and most Albania hires cost 106 to 117 percent of gross depending on salary level.  
Know every line before you send the offer.

Tom Price-Daniel · Co-founder, Teamed

## Related Albania guides

- Hiring in Albania, overviewparent
- [Albania tax and payroll](/country-hiring-guides/albania/tax-and-payroll)sibling
- [Albania termination and severance](/country-hiring-guides/albania/termination-and-severance)sibling
- [Armenia employer cost breakdown](/country-hiring-guides/armenia/cost-breakdown)neighbour
- [Employer of Record overview](/lp/employer-of-record)core
- [Pricing, Zero FX Fixed](/pricing)core
- [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost)tool
- [Talk to an expert](https://www.teamed.global/contact)CTA

A note on this page.

This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the Albanian Tax Administration and the State Social Insurance Institute before relying on any specific figure. Worked examples in this guide are illustrative only and computed from statutory rates. They are not statutory figures. The social security wage ceiling used in this guide is the majority-corroborated figure from multiple independent sources. One tier-1 source cited a different value; verify the current ceiling directly if it is material to your hiring budget.