Foreign nationals who are not citizens of Albania generally require a work permit and, where applicable, a residence permit before commencing employment. Employers usually sponsor the work permit application, while the employee applies for the appropriate visa or residence authorisation. Citizens of certain countries may benefit from simplified procedures or exemptions under bilateral agreements. Work permits are typically issued for up to one year and may be renewed.

• Employers must register with the Albanian Tax Administration and the Social Insurance Institute (ISSH) before hiring employees. 
• Payroll is generally processed monthly, with salaries typically paid at the end of each month. 
• Employers are responsible for withholding personal income tax, social security and health insurance contributions, and submitting monthly payroll declarations to the tax authorities.
• Employer Contributions:
  
  • Social Security: 15.0%
  • Health Insurance: 1.7%
• Employee Contributions:
  
  • Social Security: 9.5%
  • Health Insurance: 1.7%

• Employment contracts may be indefinite-term or fixed-term and should be concluded in writing before employment begins.
• Probation Period: Up to 3 months unless otherwise agreed.
• Working Hours: Standard working week is 40 hours, usually spread over five days. Overtime should generally not exceed statutory limits and is compensated at premium rates or with time off in lieu.
• Minimum Wage: Albania has a statutory national minimum wage, reviewed periodically by the government.
• Termination: Notice periods vary according to the employee's length of service and generally range from two weeks to three months. Employers must have valid legal grounds for dismissal, and severance compensation may apply for eligible employees upon termination.

• Albania operates a mandatory social insurance and healthcare system funded through employer and employee contributions.
• Annual Leave: Minimum of 20 working days of paid annual leave per year.
• Sick Leave: Paid sick leave is available upon presentation of a valid medical certificate. Compensation is shared between the employer and the social insurance scheme depending on the duration of the illness.
• Maternity Leave: Up to 365 calendar days, with benefits paid through the social insurance system subject to eligibility requirements.
• Paternity Leave: Fathers are entitled to a short period of paid leave following the birth of a child.
• Public Holidays: Employees are entitled to paid public holidays recognised under Albanian law.
• Additional benefits such as meal allowances, transport allowances and private medical insurance are commonly offered by employers.

• Tax Residency: Individuals are generally considered Albanian tax residents if they spend more than 183 days in Albania during a tax year or have their centre of vital interests in the country.
• Residents: Taxed on worldwide income.
• Non-Residents: Taxed only on Albanian-source income.
• Tax Year: January 1 – December 31.
• System: Progressive personal income tax system with rates ranging from 0% to 23%, depending on employment income.
• Double Taxation Treaties: Albania has an extensive network of double taxation agreements with numerous countries.