Mandatory employee benefits in Albania include workers compensation and healthcare. Typical supplementary employee benefits in Albania include life insurance, health insurance, travel health insurance, retirement and personal accident insurance.
In Albania healthcare is the number one benefit employees care about. There is state-provided healthcare, but private healthcare is preferred.
Mandatory Employee Benefits in Albania
In Albania, the State manages the whole system through funds collected monthly from employers and employees. According to Albania’s social insurance law, the following compensations are granted in the case of:
- Indemnity for temporary or permanent disability
- Death following a work accident
- Professional disease
Employee benefits can be provided indirectly through the Employers Liability facultative basis. Usually, foreign companies buy small and medium-size limits of €500K- €1M.
Despite being a mandatory benefit, it is not a good system, and it is preferred by people who cannot afford the high cost of the private system.
Supplementary Employee Benefits in Albania
Personal Accident Insurance
This is mandatory only in the mining sector, has the following parameters:
- A mandatory limit of €48,000
- Employers cover the cost of the policy
- The law regulates the scope of coverage
Products for personal savings include private pension funds, which are not compulsory. In addition, long-term life insurance with investment is an available product that combines both protection and savings.
Federal law regulates all activity and operations of private pension funds. It is a favorable system where:
- Contributions are tax-deductible for employees.
- Profits from the investment are not taxable.
- Employer contributions are tax-deductible.
- The maximum limit for annual contributions is ALL 250,000 per person.
Albania’s private healthcare system is preferred by private companies and people with high-income levels. The three main health plans have a standard limit of €50,000. The next level is Silver at €100-€200K, and Gold at €200-€300K.
Typical outpatient coverage includes:
- Visits to GP or specialists
- Lab tests or investigations, and imaging.
Inpatient coverage includes:
- Room & board
- Medication/treatment during the hospital stay
- Surgery and consumables and accessories used in the surgery room
- Road ambulance and emergency room
- Pregnancy package (monitoring of pregnancy)
- Dental and vision coverage / poor cover up to 300EUR
Travel Health Insurance
This provides for medical expenses occurred during trips abroad following accidents and includes:
- Sudden illness and emergency
- Dental care subject to certain sub-limits (emergency)
- Additional costs with relatives who assist the victim
- Additional costs with the repatriation of a deceased
This product is not mandatory, but it is strongly recommended. Also, life insurance is mainly required by banks for their creditors and top managers. The primary coverage is death by illness and accidents, and the available riders are:
- Permanent total disability (illness, accidents)
- Permanent partial disability (illness, accidents)
- Daily cash benefit for temporary disability (days of hospitalization and/or ambulatory plus days of convalescence)
- Daily cash benefits for medical expenses up to different sub-limits
- Indemnity for surgical intervention expenses up to different sub-limits
- Indemnity for broken bones (following accidents)