Albania PayrollReading Time: 2 minutes
You have several factors to worry about every time you open a new location, but expanding internationally comes with additional challenges. While it’s exciting to push your company across borders and into Albania, you have to consider how you’ll hire employees, set up your Albania payroll, and give out compensation and benefits. That’s in addition to keeping your company running back at home.
Globalization Partners can help lift some of the burdens of an expansion. As a global PEO, we offer Albania payroll outsourcing services, so you won’t have to set up your own payroll. We can hire employees who work on your behalf and take on all worries about compliance to give you the time and peace of mind you need to run your company.
What Taxation Rules Exist in Albania?
All employers must make social security and health insurance contributions at a rate of 16.7%. Employees also pay into social security at a rate of 11.2%. Albania uses a progressive income tax system, and employees owe more as their salary and compensation increases. Employees earning between 0-30,000 Albanian Lek (ALL) owe 0%, while employees making 130,000 or above owe 13,000 Lek plus 23% of the amount over 130,000.
Albania Payroll Options
Companies looking to start operations have four different Albania payroll options:
- Internal: Many larger subsidiaries with a strong commitment to Albania may choose to set up their Albania payroll out of their subsidiary. If you go the internal route, you’ll need a bigger budget and larger HR staff to run this type of payroll successfully.
- Remote: If you already have one payroll for your parent company, you can choose to pay your subsidiary’s employees through the same payroll remotely. While doing so can provide greater consistency, your employees will have separate taxation rules and regulations.
- Outsourcing with a local company: You can also choose to work with a local Albania payroll processing company that will outsource your payroll. Your company will still be the one responsible for all issues relating to compliance with this setup.
- Globalization Partners: Working with Globalization Partners is the one Albania payroll outsourcing option that will take care of setting up your payroll and compliance. We’ll use our Employer of Record platform to help you start working faster and take the stress of compliance off your shoulders and onto our own.
Requirements to Set up Your Payroll
Before you can set up your payroll, you must establish a subsidiary in the country if you’re incorporating the traditional way. As a result, it can take weeks or months before you’re officially ready to work in the country and start hiring employees, adding them to your payroll, and making important business connections. On the other hand, Globalization Partners can help you start in a few days through Albania payroll outsourcing.
Necessary Entitlement and Termination Terms
It will prove helpful to include entitlement and termination terms in every employment contract before setting up your Albania payroll. Employees in the country are considered on probation for their first three months of work and can get terminated with five days’ notice. After they work for the company longer, they’re entitled to longer notice periods and may get a severance payment.
Outsource Your Payroll With Globalization Partners
If you’re exploring your Albania payroll options, contact Globalization Partners today to learn more about outsourcing with us.