Kosovo: A Guideline to Payroll and Employer of Record

Establish your presence globally with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Kosovo.

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Overview

Kosovo is a small and landlocked country in Southeastern Europe. The country is strategically positioned in the center of the Balkan Peninsula, enclosed by Montenegro to the west, Serbia to the north and east, North Macedonia to the southeast, and Albania to the southwest.

Neeyamo assists with the onboarding and management of employees in Kosovo, along with the processing of a firm's payroll, compliance, benefits, and more.

Tools And Instances

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Global Payroll

Neeyamo’s global payroll solution covering 180+ countries

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Global Work

A tech-based EOR solution to manage your extended workforce

Facts And Stats

Capital

Pristina

Currency

Euro (EUR) 

Official Language

Albanian and Serbian

Fiscal Year

1 January - 31 December

Date Format

DD/MM/YYYY 

Country Calling Code

383

Time Zone

UTC +02:00 Central European Summer Time

Global Payroll

Overview

Handling payroll for a widespread workforce can pose a significant challenge for any organization, and the added complication of compliance can make things worse. If companies spend more time processing payroll, it directly impacts day-to-day operations and their overall productivity.

Over the years, Neeyamo has observed these complexities and strived to provide a global payroll solution through a single technology platform - Neeyamo Payroll

Payroll Taxes

Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the general population's welfare. These are statutory in nature and are levied from both the employer and employee. Additional statutory contributions are made by employers towards aiding both short-term and long-term benefits for their employees.

Employee Taxes

Employees must make the following payroll contributions:

  • 5% - Social security (SSS)
  • 15% - Pension Contribution

Employer Taxes

Employer contributions in Kosovo are as follows:

  • 5% - Social security (SSS)
  • 15% - Pension Contribution

Payroll Cycle

Overview

Undoubtedly, payroll is a critical process for any organization. Pay cycle refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

Frequency

In Kosovo, the payroll frequency is monthly. Salaries are usually paid on the 15th of every month. Organizations also choose to follow a monthly pay frequency.

13th Month Cycle

There is no statutory requirement for payments of bonuses.

Global Work

Overview

An Employer of Record (EOR) service provider helps you eliminate the hassle of handling complexities while onboarding a new employee in an international location. They help bridge the gap that otherwise mandates organizations to have a local registered entity and a local bank account prior to making a job offer to an international hire.

An EOR service provider acts as a legal employer, facilitates salary payments, and manages other statutory requirements such as health insurance, payroll taxes, and employee benefits, ensuring compliance with local tax laws and regulations.

This allows organizations to focus on collaborating with the employee in Kosovo for operational tasks, with the knowledge that they have a cost-effective solution to support their global payroll & HR requirements as they continue their global expansion.

HR Mandates and Practices

Minimum Wage

Kosovo's minimum wage is EUR 170 (USD 224) per month for workers between 35 and 65 years of age and EUR 130 for (USD 142) workers under 35 years of age.

Overtime

According to Article 20 of the Law on Labor, the statutory working week in Kosovo is 40 hours. In extraordinary cases, an employer is legally permitted to request that an employee work extended working hours for a maximum of eight hours per week if necessary, for example, due to a temporary increase in the volume of work.

For overtime work beyond 40 hours per week and for night work, employees are entitled to receive 130% of their standard hourly rate. Employees receive 150% of their standard rate for work on weekends and national holidays.

Data Retention Policy

Statutory provision not regulated for employee data retention period. It's vary by employer to employer

Hiring and Onboarding Requirements

Hiring

Preferences and Discrimination: Discrimination is prohibited in Kosovo by the constitutional order of Kosovo and is included in over 25 pieces of legislation. Article 24 of the Constitution of Kosovo bans discrimination on a number of grounds, including sexual orientation. Kosovo is one of the few states in Europe with a constitutional ban on discrimination on the basis of sexual orientation.

Onboarding

Probation

The following documents are mandated for local employees:

  1. Candidate Name
  2. Address
  3. Birth date
  4. Identity card of Kosovo
  5. Email Address
  6. Contact Number

The following documents are required for onboarding foreign employees:

  1. Visa application form
  2. Recent passport photograph
  3. Passport with a validity of at least 6 months
  4. A copy of the applicant’s passport’s main page

The maximum length of probationary employees shall be six (6) months and is counted from the date an employee started working. When the employment is not terminated after the six-month probationary period, it shall then be considered regular employment.

Leave

National Holidays

Under the Holidays Act, employers are required to provide paid time off to employees for the following public holidays: 

  • 1 Jan - New Year's Day
  • 6 Jan - Orthodox Christmas
  • 17 Feb - Independence Day
  • 9 Apr - Constitution Day
  • 10 Apr - Easter Monday
  • 16 Apr - Orthodox Easter Day
  • 17 Apr - Orthodox Easter Monday
  • 21 Apr - Eid al-Fitr
  • 1 May - Labor Day
  • 9 May - Europe Day
  • 28 Jun - Kurban Biryani Eid al-Adha
  • 25 Dec - Christmas Day

Annual Leave

Law No. 03/L-212 Labour Law.

Article 32: The employee has the right to paid annual leave for a duration of four weeks. The extension of the annual leave is one day for every 5 years of work experience with the same employer.

Maternity Leave

Law No. 03/L-212 Labour Law.

Article 49: The employed woman enjoys the right of twelve (12) months of maternity leave. With the presentation of the medical certificate, the employed woman can start maternity leave up to forty five (45) days before the date when she is expected to give birth.

The first six (6) months of maternity leave are paid by the employer with compensation of 70% of the basic salary. For the following three (3) months, maternity leave is paid by the Government of Kosovo with compensation of 50% of the average salary in Kosovo.

The employed woman has the right under this law to extend her maternity leave for another three (3) months without payment.

Paternity Leave

Law No. 03/L-212 Labour Law.

Article 49 (7) (8):

If the mother dies or abandons the child before the completion of the maternity leave, the child's father may acquire the mother's rights. After the first six months, the right to maternity leave may be transferred to the child's father in agreement with the mother.

Parental Leave

Law No. 03/L-212 Labour Law.

Article 50: Two (2) days off with pay in case of child birth or child adoption; two (2) weeks unpaid leave after the birth of the child, or the adoption of the child, in the period until the child has reached the age of three (3). The employee must inform the employer of his intentions to take leave at least ten (10) days in advance.

Sick Leave

Law No. 03/L-212 Labour Law. Article 59: Employees in Kosovo are entitled to 20 days of paid sick leave with compensation of 100% of the salary every year with the full salary paid by the employer. Employees are also entitled to compensation for medical leave, resulting from work injury or illness which occurs when performing duties and services for the Employer, with a compensation of seventy percent (70%) of the salary. As a result of work injury, employees are entitled to compensation for medical leave for a term of ten (10) to ninety (90) working days. Employees are required to submit a medical report to the employer.

Other Leave

Day Off

Law No. 03/L-212 Labour Law.

Article 30: An employee has a right to a day off between two (2) consecutive working days for a duration of at least twelve (12) hours without interruption and at least eleven (11) uninterrupted hours in seasonal jobs.

Paid Leave

Law No. 03/L-212 Labour Law.

Article 39: The employee has the right to be absent from work with salary compensation:

  1. five (5) days in case of his marriage
  2. five (5) days in case of the death of a close family member
  3. three (3) days for childbirth
  4. one (1) working day for each case of voluntary blood donation.

Unpaid Leave

Law No. 03/L-212 Labour Law.

Article 40: Based on the employee's request, the employer may allow the employee to be absent from work without salary compensation.

Leave for special care of child

Law No. 03/L-212 Labour Law.

Article 52: A child who necessarily needs special care due to a serious health condition, respectively a child who is permanently disabled, one of the parents with the expiration of maternity leave has the right to work half-time working hours until the child turns two (2) years old.

Termination

Notice Period

Notice Period:

The notice period in Kosovo is governed by the Labor Law of Kosovo. The length of the notice period varies depending on the timeline of employment and if the contract was for a fixed or indefinite term. In cases of a definite-term contract, the notice must be given 30 days before. For employees that have indefinite-term contracts, the following notice periods are applicable:

  • 15 days for employees with less than 6 months of service
  • 30 days for employees with 6 months to 2 years of service
  • 60 days for employees with more than 2 years of service.

Severance Pay

Severance Pay:

No severance pay for individual dismissals.

In case of layoffs or collective dismissals, the employers are obliged to pay their employees who have an indefinite contract. The amount varies and depends on their period of employment with the company:

  1. between two (2) and four (4) years of service, one (1) month’s salary;
  2. between five (5) and nine (9) years of service, two (2) months’ salary;
  3. between ten (10) and nineteen (19) years of service, three (3) months’ salary;
  4. between twenty (20) and twenty-nine (29) years of service, six (6) months’ salary;
  5. from thirty (30) years of service, seven (7) months’ salary.

Visa

Overview

The government in Kosovo has designated several countries, including the United States, visa-exempt. Foreign nationals from these countries are free to travel to Kosovo without a visa and stay there for up to 90 days within a period of 180 days. Foreigners from other countries will need to obtain an entry visa from the nearest embassy or consulate of Kosovo.

Regardless of whether or not your employees are from a visa-exempt country, they’ll need to obtain a work permit as well as a temporary residence permit to live and work in Kosovo.

Visa Requirements

The general requirements to get a visa for Kosovo entrance include:

  1. A duly completed and signed application form.
  2. A passport that is valid for at least six months after the applicant’s planned date of arrival in Kosovo.
  3. A passport photo that was taken within the last month.
  4. Evidence that the applicant has travel medical insurance coverage for their time in Kosovo.
  5. Proof that the applicant has sufficient financial means to support themselves in Kosovo.
  6. Evidence that the applicant has accommodations in Kosovo.
  7. Proof of payment of the visa fee.

Employee Background Checks

Legal and Background Checks

Legal provision not applicable. Employee Background checks in Kosovo depends by organization.

Last updated on July 18, 2023

If you have any queries or suggestions, reach out to us at irene.jones@neeyamo.com

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