How To Pay Social Security In Albania
Clear, practical guidance on contributions, reporting, and payment channels for employees and self-employed people.
Social security contributions in Albania are a structured set of mandatory payments tied to work and income. In everyday terms, you are paying into social insurance and health insurance, usually through the tax administration, while your contribution history is recorded for benefits and coverage. This page explains who pays, how much, when, and how to complete the payment process correctly—with special attention to the common situations visitors and residents encounter when living and working in Albania.
What Social Security Covers In Albania
Albania’s contribution system generally includes social insurance (often connected to long-term and short-term benefits) and mandatory health insurance. For most people, the key point is simple: contributions are calculated from a salary base and paid through official channels, so they can be recorded correctly in the national system.
How this affects you: Whether you are employed by a local company, hired through an Albanian entity, or working as self-employed, you will usually need to (1) be registered appropriately, (2) calculate contributions using the correct base and rates, and (3) pay on time so your record stays clean and complete.
Who Must Pay Social Security
Employees And Employers
- Employees contribute through payroll withholding (your portion is taken from your gross salary).
- Employers calculate and pay both the employer portion and the withheld employee portion to the authorities.
- In many cases, company shareholders with administrative roles are treated as employees for contribution purposes.
Self-Employed People
- Self-employed individuals generally pay mandatory contributions for themselves using a minimum base (and, in some cases, a chosen base up to the ceiling).
- If you are self-employed and also hire staff, you may have both employer obligations (for staff) and self-employed obligations (for yourself).
- Some categories (such as self-employed in agriculture) can follow specific rules and collection procedures.
Contribution Rates And Salary Bases
In Albania, contributions are calculated as percentages, typically applied to a salary base. For many employees, social insurance is limited by a minimum and maximum salary for contribution purposes, while health insurance is usually calculated on the gross salary without a ceiling. For self-employed people, the law commonly uses a minimum contribution base and a defined method for health contributions.
| Category | Social Insurance | Health Insurance | Notes On The Base |
|---|---|---|---|
| Employee (with typical employment contract) | 24.5% total (15.0% employer + 9.5% employee) | 3.4% total (1.7% employer + 1.7% employee) | Social insurance uses min/max salary for contribution purposes; health is commonly on gross salary. |
| Employer (for employees) | 15.0% (employer share) | 1.7% (employer share) | Total employer cost for these items is commonly 16.7% of the employee’s salary base. |
| Self-Employed (general rule, excluding agriculture) | At least 23% of the minimum monthly salary base (and up to the maximum base, when applicable) | 3.4% on at least the double minimum salary base | Self-employed health contributions often use a fixed minimum base rule (double minimum salary base). |
| Employment Under 87 Hours/Month (special case) | 23.3% total (13.9% employer + 9.4% employee) | 3.4% total (1.7% employer + 1.7% employee) | Used for certain low-hours monthly employment arrangements. |
Minimum And Maximum Salary Bases
- For social and health contribution purposes, Albania uses a minimum monthly salary base and a maximum salary base for social insurance (health insurance is typically not capped).
- The minimum contribution salary base has been ALL 40,000 and the maximum has been ALL 176,416 for social insurance contribution purposes.
- A new set of bases is scheduled to apply from January 1, 2026: minimum ALL 50,000 and maximum ALL 220,520 for social and health contribution purposes.
How To Pay As An Employee
If you are employed in Albania, the employer normally handles payment. Your part is to ensure your employment relationship is correctly registered and your payroll details are accurate. The employer withholds the employee portion from the gross salary and pays the total (employee + employer portions) through the official tax payment channels.
What To Check On Your Side
- Confirm your registration (the employer should submit the required employment declarations through the electronic system before the start of work).
- Review payslips for correct gross salary, withheld employee contributions, and recorded days/hours.
- Keep payment evidence you receive from the employer (payslips and any official confirmations they provide).
- If you work for two employers, be aware that social insurance may be subject to a maximum salary cap across employment, while health insurance is typically calculated on gross salaries.
How To Pay If You Are Self-Employed
If you are self-employed in Albania, you generally become responsible for calculating and paying your own contributions. Rules can differ by category (for example, self-employed in agriculture can follow separate procedures), so your starting point should be your registration details and the instructions shown inside the official tax system.
Core Contribution Formula
- Social insurance: at least 23% of the minimum monthly salary base (and up to the maximum base when applicable).
- Health insurance: 3.4% calculated on at least the double minimum salary base.
Common Payment Rhythm
Many self-employed categories pay on a quarterly basis. Your tax profile (business size/category) can influence whether reporting is monthly or quarterly, so it is important to follow the schedule shown in the official system and any instructions issued for your registration category.
Self-Employed Payment Workflow
- Confirm your registration category (for example, self-employed, partnership, or self-employed with employees).
- Check the minimum base used by the system (minimum salary base and, where relevant, the social insurance maximum base).
- Generate the payment assessment in the official electronic environment (this is commonly what produces the amounts due).
- Pay via the approved channels (banks and other approved methods), using the official payment order/reference created by the system.
- Archive proofs (receipts, confirmations, and any electronic acknowledgements).
Where And How Payments Are Made
Albania’s contribution collection is closely linked to the tax administration. In practice, payments are commonly made to designated accounts administered for this purpose, and the official payment order (created from the system based on the payroll list or the assessed obligation) is used as the basic reference for correct allocation.
Common Payment Channels
- Second-level banks that support tax payments (as per the accounts and agreements used for contributions).
- Posta Shqiptare services, where applicable for contribution payments and related declarations.
- Electronic submission of payroll declarations (where required), followed by payment using the system-generated references.
Deadlines And Reporting Rhythm
Deadlines matter because they affect whether your contributions are recorded smoothly and whether additional charges may apply. Albania commonly uses the 20th day rule for payroll submission and payment.
Typical timeline: Employers submit monthly payroll and related returns electronically and complete payment within the 20th day of the following month. Self-employed reporting can be monthly or quarterly depending on category, and quarterly payments are commonly due within the 20th day of the first month after the quarter ends.
Employment Start And End Declarations
- Albania requires electronic declarations for newly hired staff before the employment start date, and for leavers within a defined period after the employment relationship ends.
- Many official instructions and professional summaries reference a requirement of about one day (24 hours) before the start date and within 10 days after the end date.
- In practice, the most reliable check is the validation rules inside the official system used by your employer or by your registered business profile.
Proof, Records, And Common Checks
Good recordkeeping makes everything easier—especially if you need to confirm coverage, correct a mismatch, or prove compliance for an administrative request. The contribution system relies on correct identification and accurate payroll lists, and the records can include both electronic and paper evidence depending on your filing and payment method.
Keep These Documents
- Payroll statements/payslips showing contribution withholding.
- Payment confirmations (bank or postal receipt, or electronic confirmation).
- Copies or export files of payroll lists and declarations submitted.
Common Checks
- Match your gross salary and reported salary base.
- Confirm your personal ID details are correct in employer records.
- Ensure the payment reference matches the assessment created by the system.
Important Note
Social security and health contribution rules are defined by laws, decisions, and official instructions, and they can change over time (including salary bases and procedural deadlines). This page is informational and aims to help you understand the process, but you should always verify your exact obligations and deadlines through the official tax systems and the competent Albanian authorities (and, when needed, a licensed payroll accountant or legal professional) before you file or pay.
References
- ISSH – Council Of Ministers Decision (VKM) No. 77 (PDF) — Official decision detailing contribution rates, bases, and payment procedures.
- ISSH – Compulsory Insurance — Official guidance on compulsory insurance rules and contribution payment terms for categories such as the self-employed.
- ISSH – Instruction On Collection Of Mandatory Contributions (PDF) — Official instruction referencing E-SIG forms, submission logic, and time terms (including monthly/quarterly patterns).
- Ministry Of Finance – Online Services Page — Government page directing users to online services, including tax-related electronic services.
- PwC Tax Summaries – Albania Social Security Contributions — Professional summary of rates, electronic submission timelines, and minimum base logic used in practice.
- PwC Tax Summaries – Albania Significant Developments — Summary of current and upcoming minimum/maximum salary bases used for contribution purposes.
- Faculty Of Economics, University Of Tirana (FEUT) – Social Security Contributions (PDF) — University material explaining the role and structure of social and health contributions in Albania.