Hiring Your First Employee in Albania: A Simple Checklist

Hiring your first employee is an important step for any business. It also brings new obligations as an employer. This simple checklist helps you get the basics right from day one.

1. Prepare a written employment contract

Agree the main terms in writing before the employee starts: job title and duties, place of work, working hours, salary, start date and the type of contract (fixed-term or indefinite). The contract should follow the Labour Code of the Republic of Albania.

2. Register the employee before work starts

New employees must be declared to the tax administration before they begin working. Working without registration exposes the business to significant penalties, so make this step part of your onboarding routine.

3. Set up payroll

Each month you calculate the gross salary, withhold personal income tax and the employee’s social and health contributions, and add the employer’s contributions. A payroll declaration is submitted to the tax administration and the amounts are paid within the legal deadlines.

4. Give clear payslips

Provide each employee with a payslip that shows the gross salary, deductions and net pay. Clear payslips build trust and reduce questions.

5. Keep employee records

• The signed contract and any amendments.
• Identification documents and qualifications.
• Working time, leave and absence records.
• Payroll declarations and proof of payment.

6. Plan for leave and changes

Employees are entitled to paid annual leave and other types of leave under the Labour Code. Changes to the contract, and ending the employment relationship, must also follow the legal procedures.

Getting these steps right from the start protects both your business and your employee.

Need help?

We will be there for any questions you may have, as they affect both your tax and financial situations. Contact Abacus at any time.