Benefits in the monthly salary for an employee who moves over 100 km from the workplace

In Albania, salary benefits for an employee moving more than 100 km from the workplace are determined by the Labor Code and the employer’s internal policies. Benefits and salary increases for an employee moving more than 100 km depend on the nature of the move (permanent or temporary), company policies and individual negotiations. In most cases, the inclusion of allowances for transportation, housing and per diem is standard practice.

Below are the benefits and options that may be applicable.

First, we list the factors that affect the benefits for moving more than 100 km, which are:

1. Type of move
Daily trips. Reimbursements for transportation and per diems.

Permanent transfers. Rental compensation, distance bonus and monthly per diem.

2. Distance and frequency of trips
More kilometers and more frequent trips increase costs and benefits.

3. Position and job sector:
Higher positions or specialized professions usually benefit from larger bonuses and more favorable conditions.

4. Tax system:
Benefits (per diem and transportation) are in many cases exempt from personal income tax.

What applies to compensation for work away from home?

– Compensation for transportation expenses
According to standard practices and in some cases determined by collective or individual contracts:
The employee has the right to request reimbursement of transportation expenses (such as fuel, public transport tickets, etc.).
In some cases, the employer provides an organized transportation service.

– Distance allowance
The employee may benefit from:
A distance allowance to cover additional expenses related to daily travel, which may be defined in company policies.

– Benefits for permanent transfers
If the transfer is long-term (not just daily travel):
Accommodation: Some companies offer full or partial coverage of rent.
Dining and expenses: The Labor Code does not clearly define it, but most companies follow international practices to offer daily allowances for long-term transfers.
Relocation expenses: In cases where the employee has to relocate due to work, the company may cover the relocation expenses (furniture, transportation of personal belongings, etc.).

– Salary increase to compensate for difficult conditions
If the transfer involves working in more difficult conditions:
Increase in basic salary: It can be an additional percentage of the monthly salary.
Bonuses: Depending on the difficulties of the work, special bonuses or motivational supplements may be given.

– Overtime or flexibility allowance
In cases where travel or transfer requires work beyond normal working hours, the employee is entitled to:
Overtime pay (according to Article 91 of the Labor Code).
Compensation for time spent on travel, which in some cases can be counted as working time.

– Additional benefits from company policies
Depending on the sector and size of the company, these may include:
Additional health insurance.
Family support, if the transfer also includes family members.

– Legal and contractual arrangements
According to the Labor Code, any change in the work location exceeding 100 km is considered a change in working conditions and requires the written approval of the employee.
The employee has the right to negotiate the salary and additional benefits to reflect the new working conditions.

– Additional benefits and incentive bonuses
In some cases, companies apply policies to motivate employees who relocate, including:
Education bonuses or family support in the case of long-term transfers.
Additional health insurance or coverage for emergency expenses in the new city.
Vacation compensation: Opportunity to visit family every month with travel expenses covered.

Benefits in the public sector according to the Decisions of Council of Ministers of Albania and regulations

Daily allowances and transportation

For the public sector, the VKMs determine:
Daily allowances for travel within Albania
– 1,500 ALL/day for trips over 100 km lasting up to 24 hours.
– 2,500 ALL/day for longer stays.
Full reimbursement for transportation: Bus ticket or fuel for private vehicles.

Example for the public sector
A public administration inspector travels from Tirana to Berat (distance 120 km):
For 3 working days:
Total allowance of 7,500 ALL (3 x 2,500 ALL).
Reimbursement for the round-trip bus ticket (around 1,200 ALL).

Legal Framework in Albania for Relocation of Employees

In Albania, the regulation of the relocation of employees over 100 km from the usual place of work is based on the Albanian Labor Code, provisions on transportation and per diems, as well as collective or individual labor agreements. While the Labor Code and the VKMs on per diems provide the legal basis, benefits in the private sector depend largely on company policies.
Good practices: The inclusion of per diems, rental compensation and incentive bonuses are common standards.
The importance of the contract: Employees should ensure that their benefits are clearly defined in the contract to avoid disputes.

A more detailed analysis of the legal framework and applicable examples is provided below:

1. Labor Code of the Republic of Albania (Law No. 7961, dated 12.7.1995)
a. Change of workplace
According to Article 24 of the Labor Code, any change in working conditions, including its location, requires a written agreement between the employer and the employee.
If the relocation of more than 100 km significantly affects the cost of living, the employee has the right to request additional financial compensation.

The employer may change the workplace only if:
The agreement has been reached with the employee’s consent.
The possibility of transfer or relocation is stipulated in the contract.
The employer guarantees compensation for additional expenses related to the relocation.

b. Working hours and travel
According to Article 91, time spent traveling outside of normal working hours may be considered working time if it is necessary for the fulfillment of work duties.

c. Per diems and travel allowances
Article 98 provides that for tasks outside the usual place of work, the employee is entitled to a daily per diem and reimbursement of other expenses (e.g., transportation, accommodation).

An employee who works temporarily outside the usual location is entitled to:
Daily allowance, to cover the costs of food and accommodation.
Reimbursement of round-trip transportation.
Increasing allowance for additional hours related to travel.

2. Legal provisions on transport and per diems in public administration
If the employee is part of the public sector, the VKMs and specific regulations determine the per diems and compensations for long-distance travel

For trips over 100 km:
Daily per diem of around ALL 1,500-2,500 for each working day away from the workplace.
Reimbursement for rent for temporary accommodation.
These rules can also be used as a guiding standard in the private sector.

For the public sector, specific regulations apply (e.g., the VKM for public administration) defining clear benefits, such as:
Transport, where coverage is fully or partially related to travel expenses.
Accommodation, if the transfer is permanent, the employee may benefit from compensation for rent or accommodation provided by the employer.
Per diems ranging from ALL 1,500 to 2,500/day, based on the distance and nature of the relocation.

3. Common practices in the private sector
In the absence of specific legal rules, many private companies follow international standards to compensate employees in case of relocation over 100 km:

a. Financial compensation for transportation and accommodation (Regulations and VKM for the public sector)
Companies may offer reimbursement for fuel or public transportation.

Example:
An employee traveling from Tirana to Vlora for work (distance over 150 km) may receive reimbursement for:
Fuel costs (based on kilometers traveled and average fuel price).
In case of using the bus/train, the full ticket is reimbursed.

b. Housing and rent
If the relocation requires staying in another city:
The employee relocates to Tirana from another city, then the company offers:
Full or partial payment of rent.
Reimbursement for furniture or moving expenses.

Examples from practice

Example 1: An engineer moves from Durrës to Korçë
The company covers:
10,000 ALL per month for rent.
Reimbursement of transportation expenses (25 ALL per kilometer, for 300 km round trip per week).
Per diem of 2,000 ALL per working day.

Example 2: An IT specialist is transferred from Tirana to Kosovo for 6 months
Benefits include:
Salary supplement: 15% of the monthly salary to cover the higher cost of living.
Housing: The company covers 70% of the rent.
Daily allowance: 20 EUR per working day.

Example 3: Daily travel over 100 km for a project
An employee from Shkodra travels to Tirana every day for a project (200 km round trip):
The company provides:
Reimbursement for fuel (12,000 ALL/month).
A bonus of 10% of salary for additional time spent traveling.

Example 4: Daily travel over 100 km
An employee living in Fier and working in Tirana (distance 120 km)
The company reimburses:
25 ALL per kilometer for 240 km round trip (about 6,000 ALL/day).
A motivational bonus of 5,000 ALL/month for additional time spent traveling.

Example 5: Permanent transfer to another city
An engineer moves from Shkodra to Korça for a 2-year project:

The company reimburses:
Covered rent up to 30,000 ALL/month for a suitable apartment in Korça.
Reimbursement of moving expenses (transportation of furniture and personal belongings up to 50,000 ALL).
A monthly allowance of 15,000 ALL for additional living expenses.
A 10% increase in basic salary to compensate for the change in lifestyle and distance from family.

Example 6: Temporary project in another city
An IT specialist from Tirana is engaged for a 6-month project in Gjirokastër (distance 230 km)
The company provides:
Accommodation in a hotel or apartment paid directly by the company (value up to 50,000 ALL/month).
Daily allowance of 2,500 ALL for each working day in Gjirokastra.
Round-trip transportation covered every weekend to visit family.

Example 7: Reimbursement for frequent trips over 100 km
A sales manager travels every week from Durrës to various cities in the south (about 200-300 km).
The company offers:
Travel allowance: 2,000 ALL/day for 20 working days per month (40,000 ALL/month).
Fuel reimbursement for trips by personal vehicle (0.25 EUR/km).
Monthly bonus of 10,000 ALL to cover additional travel time.

Albania and the countries of the region (Western Balkans)

To compare the benefits and rules for relocating employees over 100 km from the workplace, we analyze Albania in relation to the countries of the region and those of the European Union (EU). We focus on the legal framework, labor practices, and benefits in several countries.

Albania
Legal framework: Labor Code and VKMs for the public sector. For the private sector, the rules are looser and depend on individual or collective agreements.

Typical benefits are:
Daily allowance: ALL 1,500–2,500 for trips over 100 km.

Transportation: Reimbursement for tickets or fuel.

Rent and bonuses for long-term relocation: Determined by contract.

Kosovo
Legal framework: The Labor Law (No. 03/L-212) determines the coverage of expenses for employee relocation.

Typical benefits are:
Daily allowance: Around 15–25 EUR for relocation.
Transportation reimbursement: Mandatory for distances over 30 km.
Accommodation: If the relocation lasts more than 3 months, the company must provide rent or a bonus for accommodation.

North Macedonia
Legal framework: Labor law and government regulations.

Typical benefits are:
Daily allowance: 20–30 EUR for employees who are temporarily relocated.

Transportation: Reimbursement for travel over 50 km.
Accommodation: For long-term relocations, rent or an additional bonus covering living expenses is provided.

Serbia
Legal framework: Labor law and regulations on transportation and allowances.

Typical benefits are:
Daily allowance: 20–25 EUR.
Transportation: Reimbursement for tickets or use of private vehicle.
Relocation bonuses: Includes a salary increase of up to 10–15% for long-term transfers.

European Union (EU) countries

Germany
Legal framework: Employment and Labor Relations Act (Arbeitsgesetzbuch).

Typical benefits are:
Daily allowance: EUR 14–28 for transfers over 8 hours away from home.

Transport: Reimbursement for business trips or coverage of public transportation tickets.

Housing: For long-term transfers, the employer covers up to 50% of the cost of rent.

Family allowance: Reimbursement for the relocation of spouse(s) and children.

France
Legal framework: French Labor Code and collective agreements.

Typical benefits are:
Daily allowance: EUR 17–25 for employees working outside their home.
Transport: The employer is obliged to reimburse 50% of public transport costs.
Transfer bonuses: Increase of up to 10% of the monthly salary for long-term transfers.
Accommodation allowance: Coverage of up to 70% of the rent for 12 months.

Italy
Legal framework: Labour law and national collective agreements (CCNL).

Typical benefits are:
Daily allowance: EUR 15–30 for business trips.
Transport: Reimbursement for the use of a personal car or train tickets.
Housing allowance: Compensation for rent of up to 50% for the initial period (usually up to 6 months).
Family bonuses: Relocation costs of family members are covered by the employer.

Austria
Legal framework: Labour law and reimbursement systems.

Typical benefits are:
Daily allowance: EUR 26.40 for relocation over 3 hours per day.
Transportation: Covered up to 100% for distances over 40 km.
Housing: If the employee relocates for more than 6 months, a rent bonus or free housing is offered.

Albania has a basic legal framework, but raising benefit standards would help to attract and retain employees in an increasingly competitive labor market.