- Contracts under 87 hours per month have a total rate of 26.71%, namely 23.31% for social security and 3.41% for health insurance.
- The contribution base cannot be smaller than the minimum wage, so it does not decrease in proportion to the hours.
- Contracts with a term of less than one week have an overall rate of 3.71 per three months.
- The current minimum wage is 50,000 lek and the social security cap is 186,416 lek.
The most costly aspect of part-time contracts. The contribution base is not split by hours. Even when working half-time, contributions are calculated on a base no lower than the minimum wage.
The exact breakdowns by contract type, with rates and branches, are on our page. special cases.
Regarding the implementation of the provisions of the Law no. 920, dated 05/19/2008 “On Tax Procedures in the Republic of Albania”, “On Tax Procedures in the Republic of Albania”, as amended for the categories:
High school or vocational school students and university students, for the scheduled practical training period carried out at entities engaged in economic activity, as well as employees with employment contracts lasting less than 87 hours per month:
It is mandatory to declare them at least one calendar day before the start of work in implementation of Article 119 of Law no. 9920, dated 19.05.2008 “On Tax Procedures in the Republic of Albania”, as amended.
Calculation of mandatory contributions
Regarding the calculation of mandatory contributions, based on Decision no. 77, dated 01.28.2015 “For mandatory contributions and benefits from the social security system and health insurance,” as amended for these categories:
- For secondary school students, or vocational school and university students, for the scheduled time of educational practice, the mandatory contribution for occupational accidents and diseases shall be 0.3% of the minimum gross wage.
The contributions are paid by the entity where the internship is carried out and for the period specified in the contract concluded between it and the responsible institution, or by the responsible institution.
- The mandatory contribution for employees with employment contracts lasting less than 87 hours per month shall be:
- for social security, 23.3%of gross pay, according to the payroll, where the employer's share is 13.9% and the employee's share is 9.4%, not less than the minimum wage and not more than the maximum wage, as determined in this decision, for the purpose of calculating social contributions;
- for the provision of healthcare, 3.4%of gross salary, according to the payslip, where the employer's part is 1.7% and the employee's part is 1.7%, but not less than the minimum wage determined by decision, for the purpose of calculating healthcare insurance contributions.
Warning!
Minimum wage for the purpose of calculating contributions
social and health insurance is 40,000
lek/month.
Source: General Directorate of Taxes.
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