Regardless of the legal form of organization, when you hire someone, one of the primary obligations that arises is the calculation, withholding, and payment to the tax authorities of social and health insurance contributions for employees. Additionally, it is the employer's duty to guarantee the continuity of their relationship through employment contracts with the employee.
Mandatory social insurance contributions of the employer for the employee and the employee’s own contributions are calculated on the employee's gross salary and other permanent bonuses arising from the employment relationship, within a minimum gross wage and a maximum wage level for the purpose of calculating social insurance contributions.
Mandatory health insurance contributions of the employer for the employee and the employee’s own contributions are calculated according to the established level on the employee’s gross salary and other permanent bonuses arising from the employment relationship, which cannot be lower than the minimum wage set by the Council of Ministers.
The legal basis on which social insurance contributions are paid can be found at the bottom of this page.
In support of the Labor Code, the employer is obliged to sign an employment contract with employees, whether full-time or part-time.
The employer must maintain registers for the period of employment relationships and the amounts paid to each employee, whether full-time or part-time.
To provide insurance for every employee, full-time or part-time, starting from the work commencement date, as defined in the employment contract or the appointment act.
To calculate, declare, and pay mandatory social and health insurance contributions within the specified deadlines for each employee.
Mandatory social insurance contributions of the employer for the employee and the employee’s own contributions are calculated on the employee's gross salary and other permanent bonuses arising from the employment relationship, within a minimum gross wage and a maximum wage level for the purpose of calculating social insurance contributions.
Starting from the April 2023 period, the national minimum monthly basic wage for employees, mandatory for implementation by any legal or natural person, domestic or foreign, is 40,000 ALL. (DCM No. 113, dated 01.03.2023)
Last updated: April 04, 2023
The payment of mandatory social and health insurance contributions is carried out by the employer according to the deadlines set by law.
The employer has a legal obligation to calculate, declare, and pay the contributions in the correct time and amount. The payroll (listëpagesa) is a declaration by the entity in which individual contributions are recorded, and as such, it is in support of Law No. 9920, dated 19.05.2008 "On Tax Procedures in the Republic of Albania."
The employer must regularly submit the payrolls according to the set deadline; these are the only documents that prove the payment of contributions for each employee.
The payroll is the basic document for the granting and calculation of benefits for each employee, as well as for the certifications requested by them.
NGOs and Public Entities must make the payment of social and health insurance contributions within the 20th day of the following month.
You can pay the mandatory social and health insurance contributions at any branch of second-tier banks or the Albanian Post.
Source: General Directorate of Taxes.