Payroll & Workforce Management in Albania

What running payroll in Albania costs and requires

Albania applies a standard 15% corporate income tax rate, among the lowest in Europe, but the more consequential feature for small and growing businesses is the temporary 0% exemption under Law No. 29/2023: companies and self-employed individuals with annual gross turnover up to ALL 14 million (approximately €120,700) pay no profit tax at all, an incentive guaranteed through 31 December 2029.

Operating in Albania combines one of Europe's most accessible entity formation thresholds with a turnover-monitoring discipline that companies near the ALL 14 million exemption ceiling must treat as an ongoing, not annual, compliance task.

What sits on top of gross salary

16.7% of gross salary (15% pension + 1.7% health) — base between ALL 50,000 and ALL 186,416/month (2026) — this is a direct cost the employer budgets on top of gross pay for every hire, not a deduction from it.

• Hard turnover cliff at ALL 14 million — — crossing it by any amount applies 15% CIT to the entire year's net profit, with no graduated transition
• Independent VAT and CIT thresholds — — mandatory VAT registration applies above ALL 10 million turnover, regardless of CIT-exempt status, creating a band where a business is VAT-registered but CIT-exempt simultaneously
• Raised contribution base for 2026 — — minimum monthly salary for social security purposes increased to ALL 50,000, affecting minimum employer contribution cost
• Salary-dividend structuring — for owner-directors, balancing deductible salary (subject to PIT and contributions) against the flat 8% dividend tax on distributed profit

The statutory floor for Albania

ALL 50,000/month gross (~€430), effective January 2026. Underpaying the statutory floor exposes the employer to fines and back-pay claims, and should be checked against any role before an offer is made — thresholds are typically revised annually.

Standard cycle and documentation

Payroll in Albania runs on a monthly cycle, in arrears. Payslips must itemize gross pay, statutory deductions, and net pay — incomplete or incorrect payslips are exactly what a labour or social security audit checks first, so the format is a compliance requirement, not a formality.

Employer obligations and deadlines

Annual financial statements filed with the National Business Center by 31 March following year-end.

Employer registration runs through the National Business Center (QKB), single-window registration, typically taking As little as 1–2 business days.

Frequently asked questions