Definitive Guide to Hiring in Kosovo

Hiring in Kosovo

Hiring employees compliantly in Kosovo means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Kosovo so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Kosovo; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws in Kosovo

Employee Probation Period

• Probation can last no more than six (6) months.

Annual Leave in Kosovo

• Employees are entitled to 4 weeks of annual leave

Holidays in Kosovo

Maternity Leave Kosovo

• An employed woman is entitled to maternity leave of up to twelve (12) months.

Paternity Leave Kosovo

• 10 days paid leave (at the birth or adoption of child)
• 2 weeks unpaid leave (after the birth or adoption of child at any time before the child turns 3)

Sick Leave in Kosovo

• An employee is entitled to compensation for sick leave on full pay for up to 20 working days in one year.

Working Hours in Kosovo

• According to Article 20 of the Law on Labor, the statutory working week in Kosovo is 40 hours

Overtime in Kosovo

• 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.

Termination of Employment in Kosovo

The employer is entitled to terminate the employment contract of an employee in cases where:

• • such termination is justified for economic, technical or organizational reasons;
  • the employee is no longer able to perform the job; the employee has committed serious cases of misconduct;
  • the employee’s performance of work duties is unsatisfactory; the employee is guilty of repeating a minor misconduct or breach of obligations; or
  • the employee’s performance remains unsatisfactory in spite of a written warning.

• Upon dismissal, the employee is entitled to receive his/her salary until the last day of work and also be compensated for unused annual leave.
• An employer who wants to terminate an employment relationship must respect the notification period as prescribed by Law.
• In addition, the employer must serve the employee with a written decision for the termination of the employment contract, such decision shall include grounds for the dismissal.

Notice Period in Kosovo

• The length of the notice varies depending on the timeline of employment and if the contract was for a fixed or indefinite term
• In cases of definite-term contract, the notice must be given 30 days before, whereas for employees that have indefinite-term contract, the following notice periods are applicable: -
  • Between six months and two years of employment, 30 calendar days
  • Between two and 10 years of employment, 45 calendar days
  • Above 10 years of employment, 60 calendar days

Severance in Kosovo

• No severance pay for individual dismissals
• In case of a collective dismissal, the employer is obliged to make a severance payment to its employees who have an indefinite contract.
• The amount varies and depends on their period of employment with the company:
  • between two (2) and four (4) years of service, one (1) month’s salary;
  • between five (5) and nine (9) years of service, two (2) months’ salary;
  • between ten (10) and nineteen (19) years of service, three (3) months’ salary;
  • between twenty (20) and twenty-nine (29) years of service, six (6) months’ salary; and
  • from thirty (30) years of service, seven (7) months’ salary.

Kosovo Salary and Wages

13th / 14th Month Salary in Kosovo

• No
• There is no statutory requirement to pay the 13th or the 14th month salary.
• There is no evidence that bonuses are customary.

• Both employer and employee are subject to compulsory pension contributions in Kosovo.
• The total compulsory contribution is 10%, where 5% represents the employee’s share (withheld from gross wages) and 5% the employer’s share.
• Employers and employees may contribute additional pension contribution up to 30% (15%+15%).

Immigration Kosovo

• 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.
• The general requirements to get a visa for Kosovo entrance include:
  • A duly completed and signed application form
  • A passport that is valid for at least six months after the applicant’s planned date of arrival in Kosovo
  • A passport photo that was taken within the last month
  • Evidence that the applicant has travel medical insurance coverage for their time in Kosovo
  • Proof that the applicant has sufficient financial means to support themselves in Kosovo
  • Evidence that the applicant has accommodations in Kosovo
  • Proof of payment of the visa fee
• To obtain a temporary residence permit, foreign nationals will need to provide proof of insurance and accommodations in Kosovo.
• They’ll also need to submit an official police background check from their country of residence.
• The requirements to obtain a Kosovo work permit include:
  • A temporary residence permit or valid visa
  • Details regarding the applicant’s professional position and qualifications
  • An employment contract with a business in Kosovo
  • A certificate of business registration for the employer

Value Added Tax (VAT) in Kosovo

• The VAT law and system in Kosovo is based on the European Union (EU) Directive for VAT
• VAT is levied on:
• supplies of goods or services with place of supply in Kosovo, and
• importation of goods
• The standard VAT rate is 18%.
• A reduced rate of 8% applies to certain goods and services

Mandatory Benefits in Kosovo

• These are mandatory benefits as postulated by law
• These include probationary period, annual leave, public holidays, sick leave, maternity leave, overtime pay, notice period, and severance pay
• Statutory benefits also include social security benefits

Payroll Accrual in Kosovo

Country Accruals Additional Information

Description

Both employer and employee are subject to compulsory pension contributions in Kosovo. The total compulsory contribution is 10%, where 5% represents the employee’s share (withheld from gross wages) and 5% the employer’s share. Employers and employees may contribute additional pension contribution up to 30% (15%+15%).

Payroll Accruals Additional Information

Accrued Benefits in Kosovo

Why use Global Expansion to hire in Kosovo

Establishing a branch office or subsidiary in Kosovo can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Kosovo labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Kosovo law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Kosovo. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Kosovo Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.