Salary Calculator
Albania

Our payroll calculator for Albania will help you estimate the net income based on the gross salary while considering the country’s mandatory deductions and tax regulations. 

The calculation starts by inputting the gross salary, from which the calculator deducts the country’s progressive income tax. Then, the calculator subtracts both the employer and employee contributions for social security and health insurance.

After applying all deductions, including taxes and contributions, our calculator will generate the net salary, which is the amount employees receive after their salary is taxed. 

The total cost of salary in Albania involves a couple of components applicable to both the employee and the employer.

Starting from the gross salary, it refers to the agreed-upon salary before any deductions, representing the base amount on which all other calculations are made. Employers are obligated to pay 15% of the gross salary for social security, which mainly covers pension contributions. In addition to this, employers contribute an additional 1.7% for health insurance.

Employee contributions are also deducted from the gross salary, including 9,5% for social security and 1,7% for health insurance. Employees in Albania are also subject to a progressive income tax rate, which depends on the individual’s income threshold. 

Every employed individual in Albania must submit income taxes on their earnings. The income tax is withheld by the employer from the individual’s gross salary and remitted to the authorities on the employee’s behalf. 

As the income taxes in Albania are progressive, employees earning higher amounts pay a higher tax rate. The following are the current income tax rates in Albania:

-Income up to 30,000 ALL: Tax rate of 0%.

-Income from 30,001 ALL to 130,000 ALL: Tax rate of 13% 

-Income over 130,001 ALL: 13,000 ALL + a tax rate of 23% of the amount over 130,001 ALL. 

*Please note that these rates can vary based on legislative changes.

Albanian employers are obligated to provide social security and pension benefits, granting employees access to pensions, healthcare services, disability benefits, and others.

Besides the mandatory contributions, employers must also provide a minimum of 20 working days of paid annual leave and 14 days of paid sick leave in the case of illness or injury. For new parents, employers must provide 365 days of paid maternity leave, 3 days of paid paternity leave, and 12 days of paid parental leave.

In addition to paid leave, employees who are dismissed without cause are entitled to severance pay, calculated based on the average monthly salary per year of service with the employer.

Employers in Albania often go beyond the mandatory benefits and offer additional perks to ensure they attract and retain talent. Some of the most common extra benefits include private health insurance, as well as enhanced family and medical coverage to support employees and their family members.

Besides health coverage, some employers also offer professional development opportunities, such as sponsorships for courses, certifications, and even full reimbursement of educational costs for job-relevant training.

Finally, it’s also common for employers to provide financial benefits like bonuses, stock options, transportation allowances, and meal vouchers to enhance financial security beyond the salary.

According to Albania’s salary structure, the terms gross and net salary refer to the different stages of an employee’s income.

The gross salary is the total salary agreed upon with the employer or the amount prior to any deductions for taxes and contributions. While this is the full amount earned by the employee, it isn’t what the individual receives as take-home pay.

The net salary is the amount that the employee receives after deductions. This amount is often called “take-home” pay, as it’s the amount with applied deductions for social security, health contributions, and progressive income tax based on the income threshold.