Decision of December 19, 2025
Starting from January 2026, the mandatory national monthly minimum wage, to be applied by every employer (legal or natural person, domestic or foreign), is 50,000 Albanian Lek (up from 40,000 Lek).
This minimum wage corresponds to 174 hours of work per month (normal monthly time) and is equal to 287.3 lek per hour. This decision was approved by the Council of Ministers on December 19, 2025 and repeals the previous decision No. 113, dated March 1, 2023. The decision enters into force upon publication in the Official Gazette and its financial effects begin on January 1, 2026.
DECISION ON DETERMINING THE NATIONAL MINIMUM WAGE
Pursuant to Article 100 of the Constitution, Article 111 of Law No. 7961, dated 12.7.1996, "Labor Code of the Republic of Albania," as amended, and Article 8.1 of Law No. 35/2023, "On the competencies for determining salaries, other financial treatments, and benefits of employees in public administration institutions, as well as the basic national minimum wage," as amended, upon the proposal of the Minister of Economy and Innovation, the Council of Ministers
DECIDED:
1. The basic monthly minimum wage for employees nationwide, mandatory for every legal or natural person, local or foreign, shall be 50,000 (fifty thousand) ALL.
2. The basic monthly minimum wage is provided for 174 (one hundred and seventy-four) working hours per month, performed during normal working hours.
3. The basic hourly minimum wage shall be 287.3 (two hundred and eighty-seven point three) ALL.
4. Permanent allowances are provided on top of the base salary.
5. Decision No. 113, dated 1.3.2023, of the Council of Ministers, "On determining the national minimum wage," is repealed.
This decision enters into force after publication in the "Official Gazette" and its financial effects begin on January 1, 2026.
PRIME MINISTER
EDI RAMA
What does this increase mean? (Effects and Examples)
Wage Increase for Employees
Compared with the current level of 40,000 lek, a minimum-wage employee will receive 10,000 lek more in monthly gross pay. In practice, his gross pay will increase by 25.1%. Most of this increase is expected to be reflected in the employee's net pay as well, since personal income tax for this pay level is very low (currently, salaries up to about 50,000 lekë per month are exempt from tax or taxed at minimal rates).
Concrete Example:
An employee earning the minimum wage of 40,000 lekë in December 2025 would receive approximately 40,000 lekë gross (with zero payroll tax) and pay about 4,480 lekë in personal contributions (9.5.11% social security + 1.71% health insurance). With the new salary of 50,000 lekë, he will pay about 5,600 lekë in personal contributions—that is, 1,120 lekë more—while the rest of the increase represents a net benefit. His net pay increases by about 8,880 lekë per month in this scenario (after deducting the additional contributions).
Additional Costs for Employers
For employers, the increase in the minimum wage implies a higher cost in paying social security and health insurance contributions for each minimum-wage employee. For each such employee, employer contributions will increase by about 1,670 lekë per month (151 TP3T social security + 1.71 TP3T health insurance on the 10,000-lekë difference).
Effects on Social and Health Contributions (Minimum vs. Maximum Wage)
According to current legislation, the maximum monthly wage considered for the calculation of contributions is indexed at the same rate and time as the minimum wage. This means that with an increase in the minimum wage by 10,000 lek, the maximum wage for social contributions will also increase by 10,000 lek. As a result, the maximum monthly wage on which social insurance will be paid is expected to increase from the current 176,416 lek to 186,416 lek. This indexing mechanism aims to prevent employees with very high salaries from being disproportionately penalized by the increase in contributions.
For the purpose of calculating mandatory contributions:
Mandatory:
Social Security (Pension)
The gross monthly salary for employees will be considered no less than the minimum wage (50,000 ALL) and up to 186,416 ALL per month. Salaries below 50,000 ALL will be raised to the minimum level for the calculation of contributions, while the portion above 186,416 ALL is not subject to contributions (i.e., 186,416 ALL is the cap for the contributory wage for pension purposes). For self-employed individuals as well, the monthly contribution base will range from 50,000 ALL to 186,416 ALL, according to the individual's choice (within this limit). For unpaid family workers, the monthly salary for insurance purposes will be equal to the minimum of 50,000 ALL. These values reflect the indexing of the maximum wage in the same way as the minimum wage, based on the social security law.
Health Insurance
For employees, the monthly salary is considered from the minimum wage of 50,000 ALL up to the actual gross salary (there is no maximum limit for employee health contributions – they contribute according to their actual salary). For self-employed individuals and unpaid family workers, the monthly health contribution base is equal to twice the minimum wage, which after the increase is 100,000 ALL per month. This means that the self-employed will pay health insurance on a salary of 100,000 ALL (regardless of whether their actual monthly income may be higher), as stipulated by law.
History of the Minimum Wage over the last 10 years
The minimum wage in Albania has undergone several successive increases over the last decade. Below is a chronological summary of the main changes from 2015 to the present:
2015–2016
The minimum wage was 22,000 lekë per month and was not changed during these years. The last increase had occurred in July 2013, when the minimum wage was set at 22,000 lekë per month.
2017
The minimum wage will be increased to 24,000 lekë per month (from the previous 22,000 lekë). This was the first change in approximately 3 years. The decision for the increase took effect during 2017, after approval in May 2017, despite objections from unions that were seeking an increase up to 26,000 lekë.
2019
The minimum wage increased to 26,000 ALL per month (an increase of 2,000 ALL). This level began to be applied from January 1, 2019, according to the relevant decree-law which replaced the previous minimum wage of 24,000 ALL.
2021
Minimum wage increases to 30,000 lekë to meThis increase (from 4,000 lek, 15%) went into effect on January 1, 2021, based on the December 2020 Government Decree. This was one of the highest single increases in history and came as part of the government's commitments to improve well-being after the effects of the pandemic.
2022
The minimum wage saw two increases within 2022, an unprecedented development until then. Firstly, from April 2022, the minimum wage increased from 30,000 to 32,000 lekThen, only five months later (at the end of summer 2022), the government decided on another increase, bringing minimum wage at 34,000 lek per month. The double increase within one year (from 30,000 to 34,000 ALL in total) showed the aim to accelerate the alignment of the minimum wage with countries in the region.
2023
The minimum wage recently saw a considerable increase. Starting from April 1, 2023, it was increased by 6,000 lek (about 17.61%) – from 34,000 lekë to 40,000 lekë per month. This was the largest nominal increase in the minimum wage ever in Albania (by 6,000 lekë at once) and directly affected around 200,000 workers. During 2024–2025 the minimum wage remained unchanged at 40,000 lekë, while inflation and other economic factors somewhat reduced its purchasing power.)
2026
With the government's latest decision, the minimum wage will increase to 50,000 lekë per month as of January 2026. This represents a 251% increase compared to the current level and is a continuation of the policy to raise the minimum wage above 500 euros per month. This move is expected to positively impact the living standards of over 300,000 employees in the public and private sectors and aims to encourage a reduction in informality in the labor market.
Over the last decade, the minimum wage has increased several times – from 22,000 ALL in the years 2015–2016 to the 50,000 ALL expected in 2026. This represents a doubling of the minimum wage within 10 years.
For further interpretation or specific advice (e.g., regarding effects on net wages, business costs, contracts, etc.), please contact Our specialists – we will be ready to assist you with the necessary information and clarifications.
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