In 2024, Albania implemented significant amendments to its labor laws to enhance employee benefits, promote workforce inclusivity, and strengthen economic stability. These changes, effective from August 25, 2024, are expected to shape the labor market throughout 2025 and beyond. Extended Annual Paid Leave Under the revised Law No. 91/2024, the entitlement to annual paid leave has been increased to 22 working days, a step forward from the previous allocation of four calendar weeks. This reform acknowledges the importance of work-life balance and grants employees additional time off for personal and family needs. Flexible Leave Utilization Previously, Article 93, Point 3 of the Labor Code mandated that annual leave be taken in uninterrupted blocks of at least one calendar week. This restriction has now been removed, granting employees greater flexibility to utilize their leave in shorter increments. This change allows for better scheduling and adaptability to individual needs. These amendments and more, published in the Official Gazette on August 9, 2024, became effective 15 days thereafter. Employers must ensure compliance with the updated provisions by revising their internal policies accordingly. To help Employers navigate these changes and be compliant and updated with the current Albanian legal requirenments, we have drafted a professional work contract template in English and Albanian language that is comprehensive and detailed enough to meet all legal requirenments in Albania. Professional Work Contract Template Ensure your business remains legally compliant and well-organized with our professionally drafted Work Contract Template. This 18-page comprehensive template written in English and Albanian language is designed for businesses of all sizes, covering all key legal requirements. It ensures a clear, structured agreement between employers and employees, helping to reduce risks and set clear expectations from the start. If you need to customize it for your specific business, feel free to contact us by email at [email protected] anytime! Thank you for being part of our community! ![]()
Ensure full compliance with Albanian labor law in 2025 with the “Albanian Work Contract Template – Bilingual (2025)”! This ready-to-use Word document is professionally drafted to meet all legal requirements, saving you time and effort. Get your copy today and stay legally compliant with confidence!
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In 2024, Albania implemented significant amendments to its labor laws to enhance employee benefits, promote workforce inclusivity, and strengthen economic stability. These changes, effective from August 25, 2024, are expected to shape the labor market throughout 2025 and beyond. Extended Annual Paid Leave Under the revised Law No. 91/2024, the entitlement to annual paid leave has been increased to 22 working days, a step forward from the previous allocation of four calendar weeks. This reform acknowledges the importance of work-life balance and grants employees additional time off for personal and family needs. Flexible Leave Utilization Previously, Article 93, Point 3 of the Labor Code mandated that annual leave be taken in uninterrupted blocks of at least one calendar week. This restriction has now been removed, granting employees greater flexibility to utilize their leave in shorter increments. This change allows for better scheduling and adaptability to individual needs. These amendments, published in the Official Gazette on August 9, 2024, became effective 15 days thereafter. Employers must ensure compliance with the updated provisions by revising their internal policies accordingly. Enhanced Employment Promotion Programs To support job creation and workforce development, the Albanian Parliament enacted Law No. 47/2023, amending Law No. 15/2019 “On Employment Promotion”. These amendments introduce new programs targeting youth and marginalized groups, including: Youth Guarantee SchemeThis initiative aims to assist young individuals in transitioning to the labor market by ensuring that within four months of registering with the employment office, they are provided with one of the following:
Employment Advisory for Special Groups To foster an inclusive labor market, the amended law expands the definition of "special groups" to include:
Voucher Scheme for Professional Training Unemployed individuals now have access to a Voucher Scheme for Professional Training, allowing them to receive financial support to cover vocational training costs at accredited centers. This initiative aims to enhance employability by equipping individuals with in-demand skills. Salary Increases in Public Administration In a strategic move to enhance public sector remuneration, the Council of Ministers approved substantial salary increases for public administration employees, effective July 1, 2024. This adjustment benefits approximately 135,000 workers across various sectors, including education, healthcare, security, and administrative services. Legal Framework and Implementation These salary adjustments were formalized through Council of Ministers' decisions, aligning with broader fiscal policies and public administration reforms. The total estimated budgetary impact for 2024 is 11 billion ALL, with a projected 40 billion ALL allocated for future increases. Sector-Specific Increases
Future ProvisionsStarting 2026, a biennial salary indexation mechanism will ensure that public administration salaries remain aligned with inflation rates, preserving the purchasing power of government employees. Projected Minimum Wage Increase The Albanian government has also announced a plan to increase the national minimum wage to 45,000 ALL by 2025, reflecting a commitment to improving labor conditions and economic growth. Recent Developments in Minimum Wage Adjustments
Legal Framework and Implementation Minimum wage adjustments in Albania are set by the Council of Ministers, ensuring that wage policies respond to economic conditions and labor market needs. Regional Context and Future OutlookBy targeting a 45,000 ALL minimum wage in 2025, Albania aims to reduce the wage gap with neighboring Balkan countries and enhance its economic competitiveness. Conclusion These comprehensive labor law reforms reaffirm Albania’s commitment to fostering a fair and equitable labor market. The combination of extended leave policies, employment promotion initiatives, salary increases, and minimum wage adjustments ensures better working conditions, increased job opportunities, and improved living standards for Albanian employees. ![]()
Ensure full compliance with Albanian labor law in 2025 with the “Albanian Work Contract Template – Bilingual (2025)”! This ready-to-use Word document is professionally drafted to meet all legal requirements, saving you time and effort. Get your copy today and stay legally compliant with confidence!
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February 2025
AuthorLareda Zenunaj, LL.M in Taxation |