As of January 2026, the gross minimum wage has increased to 50,000 ALL. Every employer with staff earning below this threshold was required to implement this raise. Consequently, this led to an automatic increase in social security and health insurance contributions paid monthly by the employer. This additional cost was unplanned and, until now, was not accompanied by any government relief.
The Albanian Government has now approved Decision No. 141, dated March 6, 2026, which specifically compensates for this increase in contributions. The compensation is granted monthly, covering the period from January to September 2026, and is administered through the e-Albania portal.
This article explains what the decision covers, who is eligible, how the compensation amount is calculated, and what needs to be verified before you apply.
What This Decision Covers (And What It Doesn’t)
The minimum wage increase impacts employers in two ways. The first is the higher gross salary, which remains entirely your responsibility. The second involves the employer's social security and health insurance contributions, which increased automatically as they are calculated as a percentage of the salary.
Decision No. 141/2026 only compensates for the second effect. At a rate of 16.7%, the compensation is calculated based on the difference between the employee's gross salary as declared in September 2025 and the new minimum threshold of 50,000 ALL. You pay the increased salary; the State covers the additional contributions resulting from that increase until September 2026.
Read also: Minimum Wage Increase in Albania — 50,000 ALL (January 2026)
Who Is Eligible to Apply?
Basic Criteria
Your business is entitled to compensation if it meets all the following conditions simultaneously.
It must have had employees with a gross salary from 40,000 to 49,999 ALL in the month of September 2025, because they are the basis upon which the compensation is calculated. It must be a private subject, with no connection to state ownership or public entity status. It must not be registered as self-employed, neither with employees nor without employees. And it must not have unpaid obligations to the tax administration for social security and health insurance contributions at the time of submitting the request.
Limitation by Number of Employees
Businesses with only one employee registered on the payroll are outside of this scheme. Decision No. 141/2026 specifies it explicitly: the subject must not have “one employee in total registered on the payroll.” If you have two or more registered employees, this limitation does not affect you.
Limitation by Sector
There is no sectoral limitation. The compensation applies to all types of economic activity, according to the Albanian nomenclature of economic activities.
What Is the Amount and How Is It Calculated
The Calculation Formula
Monthly compensation for each employee = 16.7% × (50,000 ALL − September 2025 gross salary)
The 16.7% rate reflects the employer's contributions: 15% social insurance and 1.7% health insurance. The lower the employee's salary was in September 2025, the larger the difference and the higher the compensation.
Example with Real Numbers
Five employees with a gross salary of 44,000 ALL in September 2025.
The difference with the new minimum wage: 50,000 − 44,000 = 6,000 ALL per employee. Monthly compensation for each employee: 16.7% × 6,000 = 1,002 ALL. Total monthly compensation for five employees: 5,010 ALL. Total compensation for the period January–September 2026 (9 months): 45,090 ALL.
The table below shows how the compensation changes according to the employee's initial salary.
| September 2025 Gross Salary | Difference | Monthly Compensation per Employee |
|---|---|---|
| 40,000 ALL | 10,000 ALL | 1,670 ALL |
| 43,000 ALL | 7,000 ALL | 1,169 ALL |
| 46,000 ALL | 4,000 ALL | 668 ALL |
| 49,000 ALL | 1,000 ALL | 167 ALL |
If You Have Reduced Staff During 2026
If during the period of January–September 2026 your total number of employees has fallen below the number of those with a salary of 40,000–49,999 ALL that you had in September 2025, the compensation is calculated based on the average amount per employee multiplied by the current total number of employees. A reduction decreases the compensation, but does not eliminate it.
When and How to Apply
Deadline and Method of Application
The application is made through the e-Albania portal starting from April 1, 2026, until October 31, 2026. The compensation covers the entire period of January–September 2026, which means you can also apply for past months within the same deadline.
October 31, 2026, is the sole and final deadline. After this date, requests will not be accepted.
Who Administers It and When It Is Paid
The compensation is administered by the Regional Directorate of the National Agency for Employment and Skills (RENA), according to the address where your business conducts its main commercial activity. The payment is made every month, within the first 10 days of the following month, directly into the entity’s bank account.
How Verification Works
The e-Albania system interacts automatically with the data from the General Directorate of Taxes. Payrolls, declarations, and contribution history are accessible by the system during the verification process, without manual intervention.
What You Should Verify Before Applying
Tax Obligation Status
If your business has unpaid obligations for social security and health insurance contributions, the system automatically blocks the requests. There is no workaround for this condition. If there are open obligations, they must be settled before submitting the application.
September 2025 Payroll
This is the document upon which the entire compensation is based: the number of employees with a salary of 40,000–49,999 ALL and their specific salaries. The decision refers to the "latest update made during the year 2025." If the September 2025 payroll was corrected after the initial filing, verify which version appears as valid in the tax system.
Coherence of Declared Data
The system automatically cross-references payroll data with tax records. Any discrepancy between what you have declared and what the system reflects may delay or block the compensation.
Read also: Expected Tax Legal Changes for 2026
Frequently asked questions
Can applications be submitted for months prior to April 1, 2026?
Yes. Although applications open on April 1, 2026, the compensation covers the period starting from January. Within the October 31, 2026 deadline, you may submit requests for the months of January, February, and March as well.
Is the financial compensation taxable?
Decision No. 141/2026 does not address this aspect. For the correct fiscal treatment of the compensation received, we recommend consulting with your accountant or our team.
Does a business qualify if it started operations after September 2025?
The decision is based entirely on the September 2025 payroll as a reference. Entities without a declaration history for that month lack a calculation basis and cannot benefit from this scheme.
What happens if an employee had separately declared allowances above the base salary?
The calculation basis is the total gross salary as it appears on the September 2025 payroll. If allowances were included as part of the gross salary, they are included in the calculation. If they were treated separately, this detail requires individual verification.