Albania Social Contributions Guide: EE 11.2%, ER 16.7%, Cap ALL 70K 2026
Albania's social security system requires contributions from both employees and employers. The employee share is approximately 11.2% of gross salary (9.5% pension + 1.7% health), and the employer share is approximately 16.7% (13.5% pension + 3.2% health). Contributions are capped at a monthly insurable income ceiling of approximately ALL 70,000. Here is how social contributions work in 2026.
Social security contributions in Albania fund the public pension system (skema e sigurimeve shoqërore) and state health insurance (skema e sigurimeve shëndetësore). The system is administered by the Institute of Social Insurance (Instituti i Sigurimeve Shoqërore) and the Health Insurance Fund. Contributions are mandatory for all employed individuals and self-employed persons. The tax year follows the calendar year. Personal income tax overview →
Real-world example: An employee with a gross monthly salary of ALL 120,000. Employee deductions: pension 9.5% = ALL 11,400, health 1.7% = ALL 2,040, total = ALL 13,440. Employer adds: pension 13.5% = ALL 16,200, health 3.2% = ALL 3,840, total = ALL 20,040. Total contribution: ALL 33,480. For a salary of ALL 200,000, the employee pays pension 9.5% up to the ALL 70K cap = ALL 6,650, and health 1.7% up to cap = ALL 1,190. The employer pays 13.5% on ALL 70K = ALL 9,450 and health 3.2% on ALL 70K = ALL 2,240. Pension system guide →
Contribution Rates 2026
- Employee — Pension (9.5%): Funds the state pension scheme (old-age, disability, survivors)
- Employee — Health (1.7%): Funds the state health insurance system
- Employer — Pension (13.5%): Employer contribution to the state pension scheme
- Employer — Health (3.2%): Employer contribution to the health insurance fund
Total combined contribution: approximately 27.9% of gross salary (up to the cap). The cap of ALL 70,000 monthly insurable income means that earnings above this threshold are not subject to additional social contributions. This cap is indexed periodically.
Who Must Pay
- Employees: All employed individuals under an employment contract must contribute. Deductions are made by the employer and remitted to the authorities
- Employers: All registered businesses employing staff must pay employer contributions in addition to remitting employee contributions
- Self-employed: Self-employed individuals and sole proprietors must register and pay social contributions at prescribed rates based on declared income
- Voluntary contributors: Unemployed individuals, students, and others may make voluntary contributions to maintain pension eligibility
Benefits Covered
- Old-age pension: Retirement pension payable from age 65 (men) / 61 (women), with at least 15 years of contributions
- Disability pension: For individuals unable to work due to disability, with minimum contribution periods
- Survivor's pension: Benefits for dependents of deceased contributors
- Sickness benefit: Temporary incapacity benefit for employees unable to work due to illness
- Maternity/paternity leave: Paid maternity leave and parental benefits
- Unemployment benefit: Limited unemployment insurance for eligible contributors
- Health insurance: Access to state healthcare services, including primary care, hospital treatment, and essential medications
Compliance and Reporting
Employers must register all employees with the social security system before work begins. Monthly contribution declarations are filed through the DPT e-Tax portal. The deadline for monthly social contribution payments is the same as the payroll date, typically by the 20th of the following month. Failure to register employees or remit contributions results in penalties, back-payment obligations, and potential criminal liability for deliberate evasion. The authorities conduct regular inspections and cross-check payroll data.
Can expatriates opt out of Albanian social security?
Expatriates working in Albania are generally subject to Albanian social security. However, if Albania has a social security agreement with the expatriate's home country (bilateral agreement), they may remain covered by their home system. Albania has social security agreements with several European countries. EU citizens may benefit from coordination rules under the Stabilisation and Association Agreement.
What happens if an employer fails to pay contributions?
Non-payment or late payment of social contributions incurs interest and penalties. The DPT and social insurance authorities can enforce collection through asset seizure, bank account freezing, and business registration suspension. Directors may be personally liable for unpaid contributions.