The employer, social security and health care

Despite the legal form of the organization, when you hire someone, one of the main obligations that arise is also the calculation, maintenance, and payments to the tax authorities of the social security and health care contributions for employees. Also, it is the duty of the employers based on the labor contracts with the employees, to ensure the continuity of their relationship.

• The mandatory contributions of social securities of the employer to the employee and the contributions of the self-employed are calculated on the gross salary of the employee and other allowances of permanent character arising from the labor relations, within a minimum gross salary and the maximum salary for the purpose of calculating social security contributions.
• The mandatory contributions to health care insurance of the employer for the employee and the contributions of the self-employed are calculated according to the level specified on the gross salary of the employee and other allowances of permanent character arising from the labor relations, which cannot be less than the minimum salary established by the Council of Ministers.

The legal basis on which are paid the social security contributions can be found at the bottom of this page.

What are the obligations as an employer?

Based on the Labor Code, the employer is required to sign an employment contract with the full-time or part employee

• The employer shall maintain registers for the period of labor relations and the amounts paid to each full-time or part employee;
• To insure each full-time or part-time employee starting from the date of commencement of work, as defined in the employment contract or letter of appointment;
• To make the calculation, declaration and payment of the mandatory contributions of social security and health care within the deadlines determined for each employee.

How to calculate the contributions, social security and health care insurance for each employee?

The mandatory contributions of social securities of the employer to the employee and the contributions of the self-employed are calculated on the gross salary of the employee and other allowances of permanent character arising from the labor relations, within a minimum gross salary and the maximum salary for the purpose of calculating social security contributions.

• The minimum monthly salary for the calculation of social security contributions and health care from 01.01.2015, is 22 000 ALL and
• The maximum monthly salary is 97,030 ALL (DCM no. 77, dated 28.01.2015).

■ The payment of mandatory contributions to social security and health care are carried out by the employer under the terms defined by law.
■ The employer has a legal obligation for the calculation, declaration and payment of contributions on time and appropriately. The payroll is a statement of the subject, in which, is evidenced the individual contributions, and as such, is based on the Law no. 9920, dated 19.05.2008 "On tax procedures in the Republic of Albania"
■ The employer must regularly submit the payrolls within the deadline, the solo documents that prove the payment of contributions for each employee;

The payroll is the basic document for the granting and calculation of benefits for each employee, as well as any attestations required from them.

What are the terms of payment of social security contributions and health care insurance?

The NGOs and public entities shall make the payment of social security contributions and health care insurance within the 20th of the following month.

Where and how to pay contributions?

You can pay the mandatory contributions of social security and health care insurance at the subsidiaries of any commercial bank or the Albanian Post Offices