Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
The monthly gross minimum wage is 30,000 ALL.
The payroll cycle is monthly, and wages must be paid by the last working day of the month when the employee is a salaried employee. For employees who work on an hourly, daily, or weekly basis, payments must be made every 2 weeks.
There are no provisions in the law.
A full-time workweek is 40 hours.
Overtime is work in excess of 40 hours a week and is paid at the rate of 125% of the regular pay. Alternatively, the employer can compensate the employee with time off instead of additional pay.
For work on weekends and public holidays, the employee is entitled to pay at a rate of 125% of the regular pay.
Overtime hours cannot exceed 8 hours per week (for a total of 48 hours worked) or 200 hours per year. However, in certain circumstances (i.e. force majeure), an employee can work more than 48 hours per week but the average of working hours per week over a 4-month period cannot exceed 48.
An employee who has worked a full year is entitled to 4 calendar weeks of paid leave. If the employee has been employed for less than one year, leave is calculated on a prorated basis.
There are 14 public holidays.
An employee can claim sick leave for the entire time of their illness until their doctor confirms that the employee is able to return. For the first 14 days of sick leave, the employer is obligated to pay 80% of the employee’s salary. From the 15th day onward, Social Insurance compensates the employee for 70% of their average salary of the past 6 months.
Women are entitled to 12 consecutive months of maternity leave. This includes a minimum of 35 days of leave before the child is born and 63 days after the birth of the child. Women who carry more than one child are entitled to 390 days of maternity leave.
During maternity leave the Social Insurance compensates the employee for 80% of the average monthly salary from the last 12 months for the first 6 months and 50% for the following 6 months.
There are no statutory laws regarding paternity leave.
An employee is entitled to 15 days of paid leave a year for a child under the age of 3 and 12 days for a child over the age of 3. In addition, an employee can take an additional 30 days of unpaid leave a year.
Bereavement Leave – In the event of the death of a spouse or a member of your immediate family, the employee is entitled to 10 days leave.
For fixed-term contracts that are expiring, there are no obligations from the employee or employer to undergo any sort of termination process.
If an employer wishes to dismiss an employee, the employer is obligated to deliver prior notice to the employee and within 72 hours must have a meeting with the employee to discuss the reason for termination and allow the employee to present their counterarguments. Should the employer fail to meet within 72 hours, the employee may be entitled to compensation.
- 1 months’ notice during the 2 first years of employment
- 2 months’ notice during 2 to 5 years of employment
- 3 months’ notice after 5 years of employment
If the employee has worked more than 3 years, they are entitled to 15 days of severance pay.
The standard VAT rate is 20%.