Kosovo is a partially recognized state in southeastern Europe at the center of the Balkans. It is bordered by Serbia, North Macedonia, Albania, and Montenegro. Kosovo declared its independence from Serbia in 2008, and 97 members of the UN have since recognized it as a sovereign state. Kosovo is considered a developing country with an upper-middle-income economy.
The minimum wage in Kosovo is EUR 250 per month, and standard workweeks are 40 hours at 8 hours per day. Overtime payments are mandatory for any hours worked outside standard hours, and range from 120%-150% of the regular rate.
Pregnant employees in Kosovo are entitled to 270 days of paid maternity leave, of which at least 45 days need to be taken before the birth. During the first 6 months of leave the employee receives 70% of their salary from the employer, and during the next 6 months the government pays 50% of the average salary. Mothers can extend for 90 more days of unpaid leave. Fathers are entitled to 10 days of paid paternity leave taken after the child's birth. The employee receives 100% of their average salary during this leave from the employer.
Employees are entitled to 20 days of paid sick leave each year, paid at 100% of the salary by the employer.
Kosovo has 13 public holidays, and employees are entitled to at least 4 weeks of paid time off each year.
If a termination is deemed to be without cause, the employee can refuse it and additional payments will be required. Compliant reasons for terminating indefinite contracts include: resignation, mutual agreement, economic reasons, misconduct, inability to complete work, or performance.
If an employer doesn’t want to renew a fixed-term contract, they need to provide 30 days notice to the employee (or possibly pay a severance). Notice periods for indefinite contracts in Kosovo depend on how long the employee has worked at the company.
There is no statutory requirement for severance payments in Kosovo. If an employer doesn’t provide 30 days of notice to employees with fixed-term contracts they may have to pay a severance.
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Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.