The benefit from the maternity leave after January 1, 2015

Open Data Albania has calculated the amount of benefit from the maternity leave according to the new law no. 104, dated 31.07.2014 which will come into force and be implemented after January 1, 2015. According to this law the benefit criteria from the maternity leave haven’t changed, considering as a benefit condition, the obligation to have a 12 month period of insurance for every maternity leave. The base on which the benefit is calculated has undergone dilutive changes.

The maximum duration of maternity leave in the Republic of Albania is 365 days and during this period the woman takes maternity leave benefits based on her employment status. In calculating the amount of benefit legal changes have introduced the concept of net salary as an accounting concept, versus the concept and term recognized from the Labor Law which is salary. The salary, or the gross salary according to the accounting concept, is the reward of the employee for the contracted work. From the gross salary is deducted 9.5 percent of the salary as part of social security that belongs to the employee; 1.7 percent of the salary as part of health insurance paid from the employee; also the income tax is deducted from the salary which varies according to the amount of salary.

What remains constitutes what is known in accounting as the net salary, and is the part of the salary that the employee receives net. Net salary is always lower than the gross salary. The difference between them, depending on the salary is from minus 11.2 percent for non-taxable salaries to minus 34.2 percent for salaries taxed at the rate of twenty-three percent. Below it is estimated the value of the net salary per gross salary from 30 to 150 thousand ALL, as the difference in value between them.

^{Source: Law No. 104 dated 31.07.2014 On Changes and Additions to the Law No. 7703, dated 11.05.1993, “On Social Insurance in Albania; ISI           
Comments and Analysis: Open Data Albania}           

Starting from January 1, 2015 the income for employed women will be for the first six months of maternity leave: a) 80% of the average daily net estimated basis of the twelve last months from the date of the right for payment for the prenatal period, to 150 calendar days after birth. The concept of Net base added in the Law, has brought the dilutive effects of maternity leaves benefits after January 1, 2015 versus maternity leaves up to 31 December 2014.

Specifically, if a woman, with a declared salary of thirty thousand ALL, takes maternity leave before 31 December 2014 she will benefit in the first six months 24 000 ALL; if she takes maternity leave after the date January 1, 2015 the benefit in the first six months of maternity leave will only be 21,312 ALL.

While in the second six months the benefit is calculated as b) 50% of the average daily net assessment basis of the last twelve months from the date of the right for payment for the period thereafter. For a woman who has as base the salary of the last 12 months, the difference between the benefit of the maternity leave until the date December 31, 2014 and the benefit of the maternity leave on January 1, 2015 will also be reduced.

^{Source: Law No. 104 dated 31.07.2014 On Changes and Additions to the Law
No. 7703, dated 11.05.1993, “On Social Insurance in Albania; ISI       
   
Comments and Analysis: Open Data Albania}  

Benefit from the maternity leave before and after the change of law, 1 January 2015. The second six months of maternity leave.

Source: Law No. 104 dated 31.07.2014 On Changes and Additions to the Law
No. 7703, dated 11.05.1993, “On Social Insurance in Albania; ISI       
   
Comments and Analysis: Open Data Albania  

Legal changes mark some innovation in favor of beneficiaries, such as: exemption from this rule of having the obligation to have 12 months of insurance for every pregnancy, in the case when the next pregnancy occurs within 24 months from the previous childbirth.

Also, after the period of 63 days after birth, the child’s father or adopter has also the right of maternity leave if this right cannot be exercised by the mother. Benefits arising from the maternity leave in our country are paid entirely by Institute of Social Insurance.