Employer of Record in Kosovo

Businesses can only operate smoothly in Kosovo if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Kosovo below, to avoid any compliance issues.

Employment Contract Requirements

When considering employing in Kosovo, it is crucial to be well-versed in the formalities that govern the hiring process in the territory. Employment contracts hold significant weight, and a key aspect is that they must be documented in writing, with both the employer and the employee signing the agreement. Employment agreements must include, at a minimum, the following information:

• Comprehensive job description
• Basic salary information
• Date of commencement of employment
• Workplace details

Onboarding Process

We can help you get a new employee started in Kosovo quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Kosovo

The standard work week is set at 40 hours, distributed evenly across five days which equates to eight hours per day.

Overtime in Kosovo

Beyond the standard 40-hour work week, overtime pay is mandatory, but it cannot be included in the regular salary. Employees are limited to a maximum of 8 overtime hours per week. The payment for overtime varies 120% of the hourly rate for day shifts, 130% for night shifts, and 150% for work on national holidays and weekends.

Probation Period in Kosovo

The probationary period for employees in Kosovo is subject to a maximum duration of six months.

Fiscal Year in Kosovo

1 January - 31 December is the 12-month accounting period that businesses in Kosovo use for financial and tax reporting purposes.

Payroll Cycle in Kosovo

The payroll cycle in Kosovo is usually monthly, with employees being paid on or before the last day of the month.

Minimum Wage in Kosovo

The minimum wage for employees in Kosovo is typically 1.65 EUR per hour, amounting to ~264 EUR per month for a typical 40 hour work week.

Bonus Payments in Kosovo

There is no legal requirement to provide a 13th-month salary or any other form of annual bonus to employees

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 5% on top of the employee salary in Kosovo.

Employee Payroll Tax Contributions

In Kosovo , the typical estimation for employee payroll contributions cost is around 5%.

Individual Income Tax Contributions

Income tax in Kosovo is for individuals and business entities, who are considered taxpayers. The tax rates are progressive, ranging from 0% to 10%, applied to the total income as follows:

Pension in Kosovo

Pensions begin at age 65, and the amount you receive depends on two things. It's based on the contributions you've made to your personal savings account. The more you contribute, the higher your potential pension. Since January 2016, the level of education you've attained also plays a role in determining your pension.

Mandatory Leave Entitlement in Kosovo

The annual leave entitlement in Kosovo is 4 weeks for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Kosovo

In Kosovo, the following are considered public holidays:

Paid Time Off in Kosovo

Both full-time and part-time employees enjoy the right to annual leave, which is mandated to be at least four weeks. The extension of annual leave beyond this baseline is determined by an employee's work experience. Specifically, for every five years of service, an additional day is added to the annual leave entitlement.

Maternity Leave In Kosovo

Female employees can take up to 12 months of maternity leave, with the option to start 45 days before childbirth. For the first 6 months, the employer pays 70% of the basic salary, and the government covers 50% of the national average salary for the next 3 months. After 9 months, an additional 3 months of unpaid leave is possible. When back at work, new mothers can reduce daily working hours by 1 or 2 to breastfeed. These rules aim to support mothers during and after childbirth, ensuring a balanced approach to work and family life.

Paternity Leave In Kosovo

Fathers are granted two days of paid leave during the birth or adoption of their child, and an additional two weeks of unpaid leave, which can be taken at any time before the child turns three. Employees are required to inform their employer at least 10 days in advance when intending to take this leave.

Sick Leave In Kosovo

Employees are entitled to 20 working days per year of sick leave, and during this period, the employer is responsible for providing paid sick leave. Employees will receive 100% of their average salary for the duration of the sick leave.

Parental Leave In Kosovo

Employees who've worked for the same employer for six months can take four months of parental leave. Both parents can decide how to split the time, and it can be taken at the same time. Social Security pays 50-70% of the salary during this period, depending on the employee's monthly salary. The leave cannot be extended beyond four months.

Marriage Leave

5 days of paid leave

Death Of Close Family Member Leave

5 days of paid leave

Termination Process in Kosovo

The employer holds the right to terminate an employment contract in Kosovo under various circumstances, including:

• Serious Misconduct
• Unsatisfactory Work Performance
• Inability to Perform the Job
• Justified Reasons

Notice Period in Kosovo

The notice period for employee termination in Kosovo varies based on the length of service and the type of employment:

• Fixed-term Employment: The notice period for fixed-term employment is 30 days.
• Indefinite Employment: 30 days notice is required for employees with up to 2 years of service.
• 45 days notice is applicable for employees with up to 10 years of service.
• Employees with over 10 years of service are entitled to a 60-day notice period.

Severance in Kosovo

In the case of individual dismissals in Kosovo, there is no provision for severance pay. However, in the event of a collective dismissal, the employer is obligated to provide severance payments to employees with indefinite contracts. The amount of severance pay varies based on the employee's period of employment with the company:

• Between two (2) and four (4) years of service, the severance pay is one (1) month's salary.
• For employees with five (5) to nine (9) years of service, the severance pay is two (2) months' salary.
• Those with ten (10) to nineteen (19) years of service are entitled to three (3) months' salary.
• Employees with twenty (20) to twenty-nine (29) years of service receive six (6) months' salary.
• For thirty (30) years of service or more, the severance pay is seven (7) months' salary.