All taxpayers who will hire new employees must declare them at least one calendar day prior to the start of work, in accordance with Article 119 of the Law. No. 9920, dated 05/19/2008 “For tax procedures in the Republic of Albania,” as amended.
Regarding the calculation of mandatory contributions, based on the Decision no. 77, dated 28.01.2015 “For mandatory contributions and benefits from the social security system and health insurance,” as amended for these categories:
- Mandatory contributions for employees on a fixed-term employment contract, lasting more 87 hours later in months, to be:
- for social security, 23.3%of gross salary, according to the payslip, where the employer's share shall be 13.9% and the employee's share 9.4% , but 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.
- Mandatory contributions for employees on a fixed-term employment contract, lasting more more than 87 hours in months, to be:
- for social security, 24.5%of gross salary, according to the payroll, where the employer's portion shall be 15.0% and the employee's portion 9.5% , but not less than the minimum wage and not more than the maximum wage, determined in this decision, for the purpose of calculating social contributions;
- për sigurimin e kujdesit shëndetësor, 3.4% të pagës bruto, sipas listëpagesës, ku pjesa e punëdhënësit të jetë 1.7% dhe pjesa e të punësuarit 1.7%, por jo më pak se paga minimale, e përcaktuar në këtë vendim, për efekt të llogaritjes së kontributeve të sigurimit të kujdesit shëndetësor.
The minimum wage for the purpose of calculating social security and health insurance contributions is 32,000 lekë/month.
In no case does current legislation provide for the hiring of employees on probation.
- The mandatory contribution for vocational or technical school students, and university students, for their scheduled internship period shall be:
The mandatory contribution for occupational accidents and diseases shall be 0.3% of the minimum gross wage, equal to 66 (sixty-six) lekë per month.
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.
Regarding the above, it is the taxpayer's obligation to include students employed by the taxpayer operating an economic activity in the social and health insurance scheme.
Students are treated the same as all employees with an employment contract, lasting less than 87 hours per month or more than 87 hours of work per month, as explained above.
If, from the verification and inspection carried out by the Tax Administration, it results that the taxpayer has not declared every employee, in addition to the obligation to pay the amount of tax liabilities and social and health insurance contributions, then they will be penalized.
If it is a large business taxpayer, the penalty is calculated at 200,000 (two hundred thousand) lekë, and if it is a small business taxpayer, then the penalty is 50,000 (fifty thousand) lekë.
Source: General Directorate of Taxes.