Albania Payroll

Albania Payroll Skill v0.1 (Tier 2 — research-verified, reviewer sign-off pending)

Tier 2 status. Every rate, threshold, and deadline below is sourced to a named authority or Big-4 summary (PwC Worldwide Tax Summaries, KPMG Albania) and cited inline. It has not yet been section-by-section No accountant verification is on record for this version. Items marked [RESEARCH GAP — reviewer to confirm] carry residual uncertainty and must be confirmed against primary sources before reliance.

Section 1 -- Quick Reference

Quick Reference table

Field	Value
Country	Albania (Republic of Albania)
Currency	ALL (Albanian Lek) only
Standard pay frequency	Monthly
Tax year	Calendar year (1 January -- 31 December)
Tax withholding system	Cumulative monthly PAYE-style withholding by the employer (payroll agent), reconciled annually (Law 29/2023)
PIT annual rates	13% up to 2,040,000 ALL; 23% on the excess (PwC; KPMG)
Employer contribution rate	16.7% (15% social + 1.7% health) (PwC)
Employee contribution rate	11.2% (9.5% social + 1.7% health) (PwC)
Social-insurance base (2025)	Floor 40,000 ALL / ceiling 176,416 ALL per month (HLB Albania; rate guides)
Health-insurance base	Full gross salary — no floor, no ceiling (PwC)
Minimum wage (2025)	40,000 ALL/month gross (HLB Albania; Karanovic & Partners)
Tax authority	General Directorate of Taxation — Drejtoria e Pergjithshme e Tatimeve (GDT/DPT), tatime.gov.al
Social-insurance authority	Social Insurance Institute — Instituti i Sigurimeve Shoqerore (ISSH), issh.gov.al
Collection	Contributions and PIT declared and paid jointly via the GDT e-filing portal
Key legislation	Law No. 29/2023 "On Income Tax" (effective 1 Jan 2024); Law No. 9136/2003 (contributions collection); Law No. 9920/2008 "On Tax Procedures"; VKM (Council of Ministers Decision) on the minimum wage
Monthly declaration deadline	20th of the month following the payroll period (PwC; tatime.gov.al)
Annual reconciliation	DIVA (Deklarata Individuale Vjetore e te Ardhurave) — 31 March of the following year (PwC)
Validated by	Pending — requires sign-off by a licensed Albanian accountant
Skill version	0.1 (Tier 2)

Section 2 -- Income Tax Withholding (PIT, Law 29/2023)

Albania does levy personal income tax on employment income. The regime was reformed by Law No. 29/2023 "On Income Tax", effective from 1 January 2024 and unchanged for tax year 2025 (PwC — Significant developments; KPMG Albania). The employer acts as withholding/payroll agent and withholds PIT monthly, with an annual reconciliation.

2.1 Annual rate brackets (statutory basis)

Annual rate brackets (statutory basis) (PwC Worldwide Tax Summaries; KPMG Albania)

Annual employment income (ALL)	Rate	Source
0 -- 2,040,000	13%	PwC Worldwide Tax Summaries; KPMG Albania
Over 2,040,000	23% on the excess above 2,040,000	PwC; KPMG

2.2 Operational monthly withholding table (PwC — the figures payroll software uses)

The annual 13%/23% structure is implemented through a banded monthly withholding table. Use the PwC 2025 table below (break-points 50,000 / 60,000 / 200,000 ALL). Do NOT use the table still shown on the tatime.gov.al English page — see the caveat in Section 11.

Operational monthly withholding table (PwC — Taxes on personal income)

Monthly gross salary (ALL)	Monthly PIT	Source
Up to 50,000	0% (fully exempt)	PwC — Taxes on personal income
50,001 -- 60,000	0% on the first 35,000; 13% on the portion exceeding 35,000	PwC — Taxes on personal income
Above 60,000	0% on the first 30,000; 13% on the portion 30,001 -- 200,000; 22,100 ALL + 23% on the portion exceeding 200,000	PwC — Taxes on personal income

• Arithmetic check on the 22,100 ALL constant — In the "above 60,000" band the 13% slice runs from 30,001 to 200,000 → 13% × (200,000 − 30,000) = 13% × 170,000 = 22,100 ALL. The constant reconciles to the cumulative tax at the 200,000 cutover. (Self-verified.) (Self-verified)

2.3 Withholding method

• Cumulative monthly withholding — Cumulative monthly PAYE-style withholding by the employer, proportional to the annual 13%/23% thresholds, reconciled annually. (KPMG; PwC)
• Joint declaration — PIT and contributions are declared and paid together monthly via the GDT portal.
• Residence basis — Residents are taxed on worldwide income; non-residents are taxed only on Albania-sourced (territorial) income. (PwC)

[RESEARCH GAP — reviewer to confirm] Whether the 11.2% employee social+health contributions are deducted from gross before PIT is computed. The research conservative_defaults instruct deducting contributions first, but the PwC monthly table is defined on monthly gross salary. This skill applies the PwC banded table to gross salary for the band determination (the literal PwC reading) in all worked examples, and flags the alternative (contributions-first) method here. The precise mechanics of the phased deductions in the 50,000–60,000 band reportedly depend on standard annual deduction tiers (600,000 / 420,000 / 360,000 ALL); a licensed Albanian accountant must confirm the exact formula against current GDT Albanian-language guidance and the payroll software.

Section 3 -- Social and Health Insurance -- Employee Deductions

Employee contributions total 11.2% of gross, split between social insurance and health insurance, withheld by the employer (PwC — Other taxes).

Employee deductions table (PwC)

Contribution	Employee rate	Base	Source
Social insurance (pension/social)	9.5%	Monthly gross between floor 40,000 ALL and ceiling 176,416 ALL (2025)	PwC; HLB Albania
Health insurance	1.7%	Full monthly gross — no floor, no ceiling	PwC
Total employee	11.2%	see component bases	PwC

• Column check — 9.5% + 1.7% = 11.2% ✓ (Self-verified.) (Self-verified)
• Social component floor/ceiling — The 9.5% social component is capped at the ceiling (176,416 ALL) and floored at 40,000 ALL (2025). (PwC; HLB Albania)
• Health component no cap/floor — The 1.7% health component is assessed on full gross with no cap or floor. (PwC)

Section 4 -- Social and Health Insurance -- Employer Contributions

Employer contributions total 16.7% of gross (PwC — Other taxes).

Employer contributions table (PwC)

Contribution	Employer rate	Base	Source
Social insurance (pension/social)	15%	Monthly gross between floor 40,000 ALL and ceiling 176,416 ALL (2025)	PwC; HLB Albania
Health insurance	1.7%	Full monthly gross — no floor, no ceiling	PwC
Total employer	16.7%	see component bases	PwC

• Column check — 15% + 1.7% = 16.7% ✓ (Self-verified.) (Self-verified)

4.1 Combined burden

Combined burden table

Party	Social	Health	Total
Employee	9.5%	1.7%	11.2%
Employer	15%	1.7%	16.7%
Combined	24.5%	3.4%	27.9%

• Total-row check — Total-row check: social column 9.5 + 15 = 24.5 ✓; health column 1.7 + 1.7 = 3.4 ✓; total column 11.2 + 16.7 = 27.9 ✓; and 24.5 + 3.4 = 27.9 ✓. (Self-verified — all three additions reconcile.) (Self-verified)

4.2 Self-employed (reference only — not employer payroll)

Self-employed contributions table (PwC — Other taxes; PwC; HLB Albania)

Contribution	Rate	Base	Source
Self-employed (non-agriculture) social insurance	23% (combined)	Not less than the minimum salary; minimum monthly base 40,000 ALL (2025)	PwC — Other taxes
Self-employed health insurance	3.4% (combined)	Not less than twice the minimum salary (≈ 80,000 ALL in 2025)	PwC; HLB Albania

[RESEARCH GAP — reviewer to confirm] The self-employed health base of "twice the minimum salary" is stated as 100,000 ALL in 2026 sources (2× the 2026 minimum of 50,000). The 2025 equivalent (2× 40,000 = 80,000 ALL) was not directly confirmed from a primary source for 2025. Self-employed payroll is out of scope for this skill — see albania-income-tax / albania-self-employed for the self-employed regime.

Section 5 -- Minimum Wage and Contribution Base

Minimum wage and contribution base table

Item	2025 value	Source
National minimum wage	40,000 ALL/month gross (in force since March 2023, based on 174 normal working hours/month)	HLB Albania; Karanovic & Partners
Social-insurance floor	40,000 ALL/month (equal to minimum wage)	PwC; HLB Albania
Social-insurance ceiling	176,416 ALL/month (indexed with the minimum wage)	HLB Albania; rate guides
Health-insurance base	Full gross — no floor, no ceiling	PwC

5.1 2026 change (forward-looking, NOT applied to 2025 payroll)

• 2026 minimum wage increase — From 1 January 2026, the minimum wage rises to 50,000 ALL/month under Council of Ministers Decision No. 776 dated 19 December 2025. The social-insurance floor moves to 50,000 ALL and the ceiling rises. (HLB Albania; Karanovic & Partners)

[RESEARCH GAP — reviewer to confirm] Sources disagree on the post-1-Jan-2026 maximum social-insurance base: HLB states 186,416 ALL (a flat +10,000 increase matching the minimum-wage rise) while Karanovic/secondary summaries state 220,520 ALL (a +25% indexation). The 2025 figure (176,416 ALL) is consistent across sources. Confirm the 2026 ceiling from the official ISSH/GDT publication before applying to any 2026 period.

Section 6 -- Conservative Defaults

When inputs are ambiguous, apply these defaults and flag the assumption to the user:

• 1. Monthly withholding table — Use the PwC 2025 monthly table (50,000 / 60,000 / 200,000 ALL break-points), NOT the outdated table on the tatime.gov.al English page (30,000 / 150,000 / 15,600 ALL), which reflects the pre-2024 Law 8438/1998 regime. (PwC; caveat Section 11)
• 2. Contribution base (2025) — Apply social-insurance floor 40,000 ALL and ceiling 176,416 ALL. For periods from 1 January 2026, the floor becomes 50,000 ALL and the ceiling rises (exact 2026 ceiling unresolved — see Section 5.1).
• 3. Health insurance base — The 1.7% employer + 1.7% employee health components are computed on full gross with no cap or floor; apply the cap/floor only to the 15%/9.5% social-insurance components.
• 4. PIT band determination — Determine the PIT band from monthly gross salary per the PwC table. (The alternative — deducting 11.2% contributions before PIT — is flagged as a research gap in Section 2.3; do not silently switch methods.)
• 5. Currency — All amounts in ALL. Never assume EUR.
• 6. Residence — Assume the employee is an Albanian tax resident unless told otherwise (worldwide-income basis). For non-residents, only Albania-sourced employment income is taxed. (PwC)

Section 7 -- Required Inputs and Refusal Catalogue

7.1 Required inputs (must have before computing)

Required inputs table

Input	Why needed
Monthly gross salary in ALL	Drives PIT band, social base (subject to floor/ceiling), and health base
Pay period (month/year)	Determines which floor/ceiling and minimum wage apply (2025 vs 2026 differ)
Employee tax residence (resident / non-resident)	Resident = worldwide; non-resident = Albania-source only
Whether the employee has more than one employer	Triggers mandatory DIVA annual filing (Section 9)
Full-time / part-time and hours	Affects whether the 40,000 ALL social floor binds (part-time / partial month)
Employer registration status with GDT	Must be registered before running payroll; foreign employers too

7.2 Refusal catalogue — STOP and ask rather than guess

Refusal catalogue table

Situation	Action
Salary stated in EUR or another currency	Refuse to compute. Ask for the ALL gross amount (or the FX basis the employer uses).
Pay period in 2026 or later	Compute using 2025 figures only if the user confirms; otherwise flag that the floor (50,000 ALL) and ceiling changed and the 2026 ceiling is unresolved (Section 5.1).
Employee may be a non-resident	Confirm residence; do not apply worldwide basis to a non-resident.
User asks for the "official" monthly table and quotes the tatime.gov.al 30,000/150,000 figures	Do not use them — explain they are the pre-2024 regime; use the PwC 2025 table (Section 11).
Self-employed / sole trader, not an employee	Out of scope — direct to the self-employed/income-tax skill (Section 4.2).
Request to compute exact penalty amounts for late filing / unregistered workers	State the 10% late-payment penalty + interest (sourced) and flag that exact administrative-fine figures are unconfirmed (Section 10).
Net-to-gross "gross-up" with a target net	Possible but iterative; state that the result is an estimate and that the contributions-vs-PIT ordering gap (Section 2.3) affects the answer.

Section 8 -- Transaction / Payment Pattern Library

Deterministic classification of typical Albanian bank-statement lines (descriptions appear in Albanian and English). Match on the uppercased description.

8.1 Salary credits (to employees)

Salary credits table

Pattern (ALL bank statement)	Classification
PAGE, PAGESA, PAGA NETO, RROGA	Net salary payment
SALARY, NET SALARY, WAGES	Net salary payment
PAGESE PAGE [emri]	Net salary to named employee
PARADHENIE PAGE, ADVANCE SALARY	Salary advance — reconcile against month-end net
BONUS, SHPERBLIM	Bonus — taxable employment income

8.2 Employer debits to the State (GDT / ISSH)

Employer debits table

Pattern	Classification
DPT, TATIME, GDT, TAP (tatimi mbi te ardhurat personale)	PIT withheld remitted to GDT
SIGURIME SHOQERORE, KONTRIBUTE SHOQERORE, SOCIAL INSURANCE	Social-insurance contribution (employer + employee share remitted together)
SIGURIME SHENDETESORE, HEALTH INSURANCE	Health-insurance contribution (employer + employee share)
ISSH, INSTITUTI I SIGURIMEVE SHOQERORE	Social-insurance institute remittance
LISTA E PAGAVE, PAYROLL LIST	Combined monthly payroll-list payment (PIT + social + health)

8.3 Non-payroll / not income

Non-payroll table

Pattern	Classification
RIMBURSIM, REFUND	Reimbursement / refund — not salary
SHPENZIM UDHETIMI, TRAVEL EXPENSE	Expense reimbursement — review for taxability
KESTI KREDISE, LOAN REPAYMENT	Loan deduction — not an employer cost

Section 9 -- Worked Examples

All figures in ALL, tax year 2025. Social base = gross clamped to [40,000 ; 176,416]; health base = full gross; PIT per the PwC monthly table (Section 2.2). Each line is recomputed end-to-end below.

Example A — Gross 45,000 ALL/month (within social band, below PIT threshold)

Example A table

Line	Computation	Amount
Gross	—	45,000.00
Social base	45,000 within [40,000;176,416]	45,000.00
Employee social	9.5% × 45,000	4,275.00
Employee health	1.7% × 45,000	765.00
Employee contributions	4,275 + 765	5,040.00
PIT	gross ≤ 50,000 → 0%	0.00
Net pay	45,000 − 5,040 − 0	39,960.00
Employer social	15% × 45,000	6,750.00
Employer health	1.7% × 45,000	765.00
Employer contributions	6,750 + 765	7,515.00
Total employer cost	45,000 + 7,515	52,515.00

Example B — Gross 55,000 ALL/month (50,001–60,000 PIT band)

Example B table

Line	Computation	Amount
Gross	—	55,000.00
Social base	55,000 within band	55,000.00
Employee social	9.5% × 55,000	5,225.00
Employee health	1.7% × 55,000	935.00
Employee contributions	5,225 + 935	6,160.00
PIT	0% on first 35,000; 13% × (55,000 − 35,000) = 13% × 20,000	2,600.00
Net pay	55,000 − 6,160 − 2,600	46,240.00
Employer social	15% × 55,000	8,250.00
Employer health	1.7% × 55,000	935.00
Employer contributions	8,250 + 935	9,185.00
Total employer cost	55,000 + 9,185	64,185.00

Example C — Gross 120,000 ALL/month (above 60,000 band, below ceiling and below 200,000)

Example C table

Line	Computation	Amount
Gross	—	120,000.00
Social base	120,000 < 176,416	120,000.00
Employee social	9.5% × 120,000	11,400.00
Employee health	1.7% × 120,000	2,040.00
Employee contributions	11,400 + 2,040	13,440.00
PIT	0% on first 30,000; 13% × (120,000 − 30,000) = 13% × 90,000	11,700.00
Net pay	120,000 − 13,440 − 11,700	94,860.00
Employer social	15% × 120,000	18,000.00
Employer health	1.7% × 120,000	2,040.00
Employer contributions	18,000 + 2,040	20,040.00
Total employer cost	120,000 + 20,040	140,040.00

Example D — Gross 250,000 ALL/month (above social ceiling AND above 200,000 PIT cutover)

Example D table

Line	Computation	Amount
Gross	—	250,000.00
Social base	capped at ceiling	176,416.00
Employee social	9.5% × 176,416	16,759.52
Employee health	1.7% × 250,000 (uncapped)	4,250.00
Employee contributions	16,759.52 + 4,250	21,009.52
PIT	22,100 + 23% × (250,000 − 200,000) = 22,100 + 23% × 50,000 = 22,100 + 11,500	33,600.00
Net pay	250,000 − 21,009.52 − 33,600	195,390.48
Employer social	15% × 176,416	26,462.40
Employer health	1.7% × 250,000	4,250.00
Employer contributions	26,462.40 + 4,250	30,712.40
Total employer cost	250,000 + 30,712.40	280,712.40

Example E — Minimum wage, gross 40,000 ALL/month (floor edge)

Example E table

Line	Computation	Amount
Gross	—	40,000.00
Social base	= floor 40,000	40,000.00
Employee social	9.5% × 40,000	3,800.00
Employee health	1.7% × 40,000	680.00
Employee contributions	3,800 + 680	4,480.00
PIT	gross ≤ 50,000 → 0%	0.00
Net pay	40,000 − 4,480 − 0	35,520.00
Employer social	15% × 40,000	6,000.00
Employer health	1.7% × 40,000	680.00
Employer contributions	6,000 + 680	6,680.00
Total employer cost	40,000 + 6,680	46,680.00

Example F — Part-time, gross 30,000 ALL/month (below social floor)

A part-time / partial-month wage can be below the 40,000 ALL social floor. The social components are computed on the 40,000 floor, while the health components use the actual gross (no floor).

Example F table

Line	Computation	Amount
Gross	—	30,000.00
Social base	floored at 40,000	40,000.00
Employee social	9.5% × 40,000	3,800.00
Employee health	1.7% × 30,000 (no floor)	510.00
Employee contributions	3,800 + 510	4,310.00
PIT	gross ≤ 50,000 → 0%	0.00
Net pay	30,000 − 4,310 − 0	25,690.00
Employer social	15% × 40,000	6,000.00
Employer health	1.7% × 30,000	510.00
Employer contributions	6,000 + 510	6,510.00
Total employer cost	30,000 + 6,510	36,510.00

[RESEARCH GAP — reviewer to confirm] The exact treatment of a sub-floor part-time / partial-month wage (whether the 40,000 ALL floor is pro-rated for part-time, or applied in full) was not confirmed from a primary source. Example F applies the full floor conservatively; a licensed Albanian accountant should confirm the pro-ration rule.

Section 10 -- Tier 1 Rules (deterministic — apply mechanically)

• PIT rate bands (annual) — PIT exists on employment income; 13% up to 2,040,000 ALL/year, 23% above (PwC; KPMG)
• Monthly withholding table to use — Use the PwC 2025 monthly withholding table (break-points 50,000 / 60,000 / 200,000 ALL), not the pre-2024 tatime.gov.al English table (Section 11) (PwC)
• Salary ≤ 50,000 ALL/month — 0% PIT (PwC)
• Salary 50,001–60,000 ALL/month — 0% on first 35,000, 13% on the excess (PwC)
• Salary > 60,000 ALL/month — 0% on first 30,000, 13% on 30,001–200,000, then 22,100 ALL + 23% on the excess over 200,000 (PwC)
• Employer contributions rate — 16.7% (15% social + 1.7% health) (PwC)
• Employee contributions rate — 11.2% (9.5% social + 1.7% health) (PwC)
• Combined employer + employee burden — 27.9% (PwC; arithmetic verified Section 4.1)
• 2025 social base floor/ceiling — floor 40,000 ALL, ceiling 176,416 ALL; cap/floor apply ONLY to the 15%/9.5% social components (HLB Albania; rate guides)
• Health components basis — Health components (1.7% each) are on full gross — no floor, no ceiling (PwC)
• 2025 minimum wage — 40,000 ALL/month (HLB Albania; Karanovic & Partners)
• Monthly payroll declaration deadline — Monthly payroll list (PIT + social + health) declared and paid electronically by the 20th of the following month (PwC; tatime.gov.al)
• DIVA annual return deadline — DIVA annual return due 31 March of the following year; balance of tax also due 31 March (PwC)
• Employer/employee registration requirement — Employers (including foreign companies without a local entity) must register with the GDT and register each employee at least one day before work starts (Rivermate; tatime.gov.al)
• Late payment penalty — Late payment of tax/contributions → 10% penalty + default interest under the Law on Tax Procedures (No. 9920/2008) (Playroll; statute)

Section 11 -- Tier 2 Catalogue (reviewer judgement required)

These items require a licensed Albanian accountant's judgement and/or confirmation against primary sources before reliance.

1. Monthly bracket discrepancy. The tatime.gov.al English page still displays an outdated monthly table (0% to 30,000; 13% on 30,001–150,000; 15,600 ALL + 23% over 150,000) reflecting the pre-2024 Law 8438/1998 regime. The current 2025 structure (Law 29/2023) is the PwC table used in this skill (50,000 / 60,000 / 200,000 break-points). A reviewer should confirm the exact monthly withholding formula against current GDT Albanian-language guidance and the payroll software, including the phased-deduction mechanics of the 50,000–60,000 band (reportedly linked to standard annual deduction tiers of 600,000 / 420,000 / 360,000 ALL).
2. Contributions-vs-PIT ordering (Section 2.3) — confirm whether the 11.2% employee contributions are deducted before PIT.
3. 2026 social ceiling (Section 5.1) — HLB (186,416 ALL) vs Karanovic/secondary (220,520 ALL); confirm from ISSH/GDT before applying any 2026 period.
4. Penalty amounts (Section 10, rule 15 and below) — the 10% late-payment penalty + interest is from secondary summaries; exact administrative fines for late payroll declaration and for unregistered workers must be confirmed against the primary text of Law No. 9920/2008.
5. Part-time social floor pro-ration (Section 9, Example F).
6. DIVA scope for a given employee (single vs multiple employers, other non-final-withholding income) — confirm filing obligation (Section 12.2).

12.1 Monthly — Payroll list ("Lista e pagave")

Monthly payroll list filing table (PwC; tatime.gov.al; Rivermate)

Form	Purpose	Deadline	Source
Monthly payroll / withholding & contributions declaration ("Lista e pagave")	Declare and pay employees' PIT withheld plus employer + employee social and health contributions, filed electronically via the GDT portal	By the 20th of the month following the payroll period	PwC; tatime.gov.al; Rivermate

12.2 Annual — DIVA

Annual DIVA filing table (PwC — Tax administration; tatime.gov.al)

Form	Purpose	Deadline	Source
Annual Individual Income Declaration — DIVA (Deklarata Individuale Vjetore e te Ardhurave)	Year-end reconciliation of total income; balance of tax due	31 March of the year following the tax year	PwC — Tax administration; tatime.gov.al

• DIVA filing triggers — Resident with annual taxable income over 1,200,000 ALL; or individuals with more than one employer (any amount); or other non-final-withholding income over 50,000 ALL. Self-employed / traders always file. (PwC — Tax administration)

Section 13 -- Thresholds Reference Table

Thresholds Reference Table (PwC; KPMG; HLB Albania; Karanovic & Partners; tatime.gov.al; Council of Ministers Decision No. 776/2025)

Threshold	Value	Source
Annual PIT rate threshold (13% → 23%)	2,040,000 ALL annual taxable employment income	PwC; KPMG
Monthly fully-exempt salary ceiling	50,000 ALL/month (≤ this is 0% PIT)	PwC
Monthly 23% cutover	200,000 ALL/month taxable salary	PwC
Social-insurance floor (2025)	40,000 ALL/month	PwC; HLB Albania; rate guides
Social-insurance ceiling (2025)	176,416 ALL/month	HLB Albania; rate guides
Health-insurance base	Full gross — no floor, no ceiling	PwC
Minimum wage (2025)	40,000 ALL/month	HLB Albania; Karanovic & Partners
Minimum wage (from 1 Jan 2026)	50,000 ALL/month	Council of Ministers Decision No. 776/2025
DIVA annual filing trigger	Annual income > 1,200,000 ALL, OR any income from > 1 employer, OR other non-final income > 50,000 ALL	PwC — Tax administration
Monthly declaration deadline	20th of following month	PwC; tatime.gov.al
DIVA deadline	31 March following year	PwC

Sanity check: ceiling (176,416) ≥ floor (40,000) ✓; all rates 1.7%–23% are plausible payroll percentages ✓. (Self-verified.)

Section 14 -- Penalties

Penalties table (Playroll; Law No. 9920/2008)

Penalty	Detail	Source
Late payment of tax / contributions	10% of the unpaid liability + default interest (interest per the Law on Tax Procedures / Ministry of Finance rate)	Playroll; Law No. 9920/2008
Failure to register an employee / undeclared work	Administrative fines under Law No. 9920/2008; significant per-employee penalties — [RESEARCH GAP — reviewer to confirm] exact amount not confirmed from a primary source	tatime.gov.al; Law No. 9920/2008
Late filing of a mandatory declaration	Fixed administrative fine (e.g. 10,000 ALL per month of delay cited for certain annual filings) — [RESEARCH GAP — reviewer to confirm] the specific payroll-declaration figure is from secondary summaries (Wise/Playroll), not confirmed from a primary source	Law No. 9920/2008 (secondary)

Section 15 -- Excel Working Paper Template

Excel working paper template (input)

Row	Label	Formula / source
1	Employee name	input
2	Pay period (month/year)	input
3	Tax residence (R/NR)	input
4	Gross salary	input
5	Social base	=MIN(MAX(B4,40000),176416) (2025 floor/ceiling)
6	Health base	=B4 (full gross, no cap)
7	Employee social (9.5%)	=B5*0.095
8	Employee health (1.7%)	=B6*0.017
9	Employee contributions	=B7+B8
10	PIT band	=IF(B4<=50000,"0%",IF(B4<=60000,"50-60k",">60k"))
11	PIT withheld	=IF(B4<=50000,0,IF(B4<=60000,(B4-35000)*0.13,IF(B4<=200000,(B4-30000)*0.13,22100+(B4-200000)*0.23)))
12	Net pay	=B4-B9-B11
13	Employer social (15%)	=B5*0.15
14	Employer health (1.7%)	=B6*0.017
15	Employer contributions	=B13+B14
16	Total employer cost	=B4+B15
17	Monthly remittance to GDT	=B11+B9+B15 (PIT + employee + employer contributions)

Reproduce this layout in a single worksheet (one column per employee, or one row per employee for a register). All cells in ALL.

Cross-check against Example C (gross 120,000): row 5 = 120,000; row 7 = 11,400; row 8 = 2,040; row 9 = 13,440; row 11 = (120,000−30,000)×0.13 = 11,700; row 12 = 94,860; row 15 = 20,040; row 16 = 140,040. ✓ Matches Example C exactly.

Section 16 -- Bank Statement / Terminology Reading Guide

Albanian to English payroll terminology

Albanian	English
Paga / Rroga	Salary / wage
Paga bruto	Gross salary
Paga neto	Net salary
Lista e pagave	Payroll list (monthly declaration)
Tatimi mbi te ardhurat personale (TAP)	Personal income tax (PIT)
Sigurime shoqerore	Social insurance
Sigurime shendetesore	Health insurance
Kontribute	Contributions
Paga minimale	Minimum wage
Drejtoria e Pergjithshme e Tatimeve (DPT)	General Directorate of Taxation (GDT)
Instituti i Sigurimeve Shoqerore (ISSH)	Social Insurance Institute
Deklarata Individuale Vjetore e te Ardhurave (DIVA)	Annual Individual Income Declaration
Shperblim / Bonus	Bonus
Paradhenie page	Salary advance
Gjobe	Penalty / fine
Interes	Interest

Section 17 -- Onboarding Fallback

If the user has not provided enough to run payroll, collect in this order:

1. Monthly gross salary in ALL (refuse if given in EUR — Section 7.2).
2. Pay period (month + year) — confirm 2025 vs 2026 figures.
3. Tax residence (resident / non-resident).
4. Whether the employee has more than one employer (DIVA trigger).
5. Full-time / part-time and contracted hours (floor edge — Section 9 Example F).
6. Confirm the employer is registered with the GDT and the employee was registered ≥ 1 day before starting (Section 10, rule 14).

If any required input is missing, state what is missing and do not fabricate a figure.

Section 18 -- Interaction with Other Skills

Interaction with other skills table

Scenario	Skill to Use
Employee payroll (PIT + social + health)	This skill (albania-payroll.md)
Self-employed / sole-trader income & contributions	albania-income-tax.md / albania-self-employed.md
Albania VAT (TVSH) returns	albania-vat-return.md
Albania corporate income tax	albania-corporate-tax.md
Albania bookkeeping	albania-bookkeeping.md

Key handoff points

• Payroll → Bookkeeping: gross wages and the 16.7% employer contributions are expenses; PIT withheld and the 11.2% employee contributions are liabilities until remitted on the 20th.
• Payroll → Income Tax: the year's withholding feeds the employee's DIVA reconciliation where a DIVA filing is required (Section 12.2).

19.1 Sources

Sources table

#	Title	Publisher	URL
1	Albania — Individual — Taxes on personal income	PwC Worldwide Tax Summaries	https://taxsummaries.pwc.com/albania/individual/taxes-on-personal-income
2	Albania — Individual — Other taxes (social and health insurance)	PwC Worldwide Tax Summaries	https://taxsummaries.pwc.com/albania/individual/other-taxes
3	Albania — Individual — Tax administration	PwC Worldwide Tax Summaries	https://taxsummaries.pwc.com/albania/individual/tax-administration
4	Albania — Individual — Significant developments	PwC Worldwide Tax Summaries	https://taxsummaries.pwc.com/albania/individual/significant-developments
5	Taxation of Employment Income in 2024	KPMG Albania	https://kpmg.com/al/en/insights/2023/09/taxation-of-employment-income-in-2024.html
6	Increase of the Minimum Wage in Albania from 1 January 2026	HLB Albania	https://www.hlb.al/increase-of-the-minimum-wage-in-albania-from-1-january-2026-what-changes-for-employers-and-employees/
7	Albania Adopts New Decision on National Minimum Wage (No. 776/2025)	Karanovic & Partners	https://www.karanovicpartners.com/news/albania-adopts-new-decision-on-national-minimum-wage/
8	Tax on personal income	General Directorate of Taxation (tatime.gov.al)	https://www.tatime.gov.al/eng/c/4/96/108/tax-on-personal-income
9	Employment Taxes in Albania	Rivermate	https://www.rivermate.com/guides/albania/taxes
10	How to Run Payroll in Albania	Playroll	https://www.playroll.com/payroll/albania

19.2 Test Suite (numbered — recompute to confirm any change)

Test suite table

#	Input	Expected output	Recomputation
1	Gross 45,000	Net 39,960; employer cost 52,515	Ex. A — emp. contrib 5,040; PIT 0
2	Gross 55,000	Net 46,240; PIT 2,600; employer cost 64,185	Ex. B — 13% × 20,000 = 2,600
3	Gross 120,000	Net 94,860; PIT 11,700; employer cost 140,040	Ex. C — 13% × 90,000 = 11,700
4	Gross 250,000	Net 195,390.48; PIT 33,600; employer cost 280,712.40	Ex. D — social capped at 176,416; PIT 22,100 + 23% × 50,000
5	Gross 40,000 (min wage)	Net 35,520; PIT 0; employer cost 46,680	Ex. E — floor binds at 40,000
6	Gross 30,000 part-time	Net 25,690; PIT 0; employer cost 36,510	Ex. F — social on 40,000 floor; health on 30,000
7	Annual income 2,040,000	Marginal rate steps 13% → 23% above this	Section 2.1 statutory threshold
8	Contribution totals	Employee 11.2%; employer 16.7%; combined 27.9%	Section 4.1 — all three additions reconcile
9	Monthly remittance, gross 120,000	11,700 + 13,440 + 20,040 = 45,180 to GDT	Template row 17
10	Deadlines	Monthly list by 20th; DIVA by 31 March	Section 12

PROHIBITIONS

• Non-ALL currency refusal — NEVER compute Albanian payroll in EUR or any non-ALL currency — refuse and ask for the ALL gross.
• Outdated monthly table prohibition — NEVER use the outdated tatime.gov.al English monthly table (30,000 / 150,000 / 15,600) — it reflects the pre-2024 Law 8438/1998 regime; use the PwC 2025 table.
• Floor/ceiling not applicable to health — NEVER apply the social-insurance floor/ceiling to the health-insurance components — health (1.7% each) is on full gross with no cap or floor.
• No health cap — NEVER apply the 1.7% health cap — there is none.
• 2025 figures not for 2026 without flag — NEVER apply 2025 figures (floor 40,000 / ceiling 176,416 / min wage 40,000) to a 2026 or later period without flagging the 1 Jan 2026 changes and the unresolved 2026 ceiling.
• Employer on-cost must be included — NEVER omit the employer 16.7% on-cost when quoting total employment cost.
• Penalty amounts uncertain — NEVER state exact penalty/fine amounts for late declaration or unregistered workers as confirmed — they are research gaps pending primary-source confirmation.
• Monthly deadline must not be missed — NEVER miss the monthly payroll-list deadline (20th of the following month) — 10% penalty + interest applies.
• Computations not definitive — NEVER present payroll computations as definitive — label them estimated and direct the user to a licensed Albanian accountant.
• Disclose assumption on method switching — NEVER silently switch between the gross-basis PIT table and the contributions-first method (Section 2.3) — disclose the assumption.

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a licensed accountant in Albania) before implementation. This is a Tier 2 (research-verified) skill: figures are sourced to named authorities and Big-4 summaries but have not yet been verified section-by-section by a licensed Albanian accountant, and items marked "[RESEARCH GAP — reviewer to confirm]" carry residual uncertainty.

The most up-to-date, verified version of this skill is maintained at openaccountants.com. Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.