The obligation of the employer to pay the contributions
The obligation of the employer to pay the contributions regardless of the legal form of organization, when you hire someone, one of the primary obligations that arise is the calculation, maintenance, and payment to the tax authorities of social and health insurance contributions for employees.
The employer also must guarantee the continuity of their relationship through employment contracts with the employee.
• Compulsory employer’s social security contributions for the employee and the employee’s contributions are calculated on the employee’s gross salary and other permanent allowances arising from the employment relationship, within a gross minimum wage and maximum wage level, for the effect of calculating social security contributions.
• Compulsory employer health insurance contributions for the employee and the employee’s contributions are calculated according to the level determined on the employee’s gross salary and other permanent allowances arising from the employment relationship, which can not be less than the minimum wage set by the Council of Ministers.
Referring to the Labor Code, every employer has a legal obligation to sign an employment contract with employees, whether the latter full-time or part-time;
• The employer must keep records of employees and to record in them the entire period of employment and the amounts paid to each employee, full-time or part-time;
• Carry out the insurance of each employee, full-time or part-time, starting from the date of commencement of work, based on the definition in the employment contract or the act of appointment;
• Calculate, declare, and pay compulsory social and health insurance contributions within the deadlines set for each employee.
Also, Law No. 7703, dated 11.5.1993 on Social Insurance in the Republic of Albania, in its provisions clearly expresses the obligation of the employer to pay the mandatory contributions. Furthermore, this procedure must be performed within the deadlines; otherwise, there are sanctions.
Article 13, point 2 of this law states that:
Contributions of persons employed under an employment contract shall be shared between the insured person and his employer, by the provisions of this law and shall be paid by the employer.
Article 16: The employers and the self-employed, excluding the self-employed persons in agriculture, who do not apply the terms and procedures of payment of social insurance contributions, the sanctions defined in the law no. 9136, dated 11.9.2003 “On the collection of compulsory insurance contributions are applied social and health in the Republic of Albania,” as amended.