Key points
- The personal status declaration is signed by the employee and the employer before tax deductions are applied to the gross salary.
- He devotes himself fully to a single employer during the same period. Only he applies deductions; other employers tax the gross wage.
- The amount of payroll tax has not changed. The tax for January 2025 is the same as that for December 2024.
- Monthly deductions are 50,000, 35,000, or 30,000 lek according to pay level, plus 48,000 lek per year for each child under 18.
- Differences from dual employment are settled through the annual declaration, payable by March 31 of the following year.
Published on February 3, 2025 · Updated on August 16, 2026 with the discount table and examples of dual employment summarized in a table.
The personal status declaration is the document that the employee and employer sign before the salary can benefit from tax deductions. The main rule is a single one: the declaration may be submitted to at most one employer during the same calendar period.
The obligation arises from Law No. 29/2023 "On Income Tax" and it was clarified with the notice of the Tax Administration For the new payroll. Below you'll find who completes it, the amounts of the deductions, and five calculated examples, along with the template available for download.
Read also: Annual DIVA Declaration. Childcare and educational expense reimbursement.
Did the amount of payroll tax change?
No. This is the first clarification that needs to be given to employees, because the question naturally arises whenever a law changes. Payroll tax as of January 2025 remains identical to that of December 2024.
The purpose of the law is different. It unifies the way individuals report income from three sources: employment, self-employment or business, and investments. The full rates and deductions are available on our website. How much tax is withheld from the salary?.
Who completes the personal status statement?
Any employee who wishes to claim deductions from gross pay. The employer who receives the declaration applies the deductions on the payroll. Other employers, when there is more than one, calculate the tax on gross pay without any deductions.
Long-term employees
Yes, they also complete it. The declaration is submitted once at this point and remains valid thereafter, until the circumstances change.
Employees with multiple employers
Choose a single employer for the statement. Usually it's the one with the highest salary, because that's where the deduction has its full effect. Any differences that arise are adjusted on the annual return.
Non-monthly rewards and benefits
The payroll agent calculates it on a monthly basis, just like the salary. Therefore, the year-end bonus is taxed in the month it is paid.
Self-employed
They are exempt from this requirement. Their personal deductions are reported on the annual return, not on the payroll.
How much have the deductions been reduced from the tax base?
Monthly discounts are divided by pay level, while the two family discounts are annual.
| Discount | The amount | Condition |
|---|---|---|
| Basic monthly discount | 50,000 lek | For salaries up to 50,000 lekë per month |
| Basic monthly discount | 35,000 lek | For a salary of 50,000 to 60,000 lekë per month. |
| Basic monthly discount | 30,000 lek | For salaries above 60,000 lek per month |
| For every child under 18 years old | 48,000 lek per year | The higher-income parent benefits. |
| Children's education | Up to 100,000 lek per year | Annual income under 1,200,000 lek |
In addition to these, contributions to voluntary pension funds are deducted from pre-tax wages. According to Article 20 of Law No. 29/2023, as amended, the maximum deduction cannot exceed the country's minimum wage, currently 40,000 lek.
Calculated examples
The real effect of the declaration appears in dual employment. The first three scenarios feature the same character, employee K.P., with two employers: Alpha, where he files the declaration, and Beta, where he is taxed without any deductions.
| Two monthly salaries | Tax withheld for the month | Correct taxation | Annual difference |
|---|---|---|---|
| 100,000 and 50,000 lek | 15,600 lek | 15,600 lek | None, neither obligation nor return. |
| Twenty-five thousand and twenty-five thousand lek | 3,250 lek | zero lek | 39,000 lek overpaid, for refund |
| 200,000 and 180,000 lek | 46,500 lek | 63,500 lek | 204,000 lek additional obligation, payable by March 31. |
The calculation for the first line goes like this. Alpha applies the 30,000-lekë deduction and withholds 9,100 lekë in tax, i.e., 13.1% of 70,000 lekë. Beta withholds 6,500 lek on a gross salary of 50,000 lek. In total, 15,600 lek, exactly matching the annual calculation. Therefore, this employee has neither an obligation nor a refund.
The second line shows the opposite. With two small salaries, the full 50,000 lekë deduction would bring the exact tax to zero. However, Beta withholds 3,250 lekë each month because there is no declaration there. The employee only gets back 39,000 lekë per year if he files an annual return.
The third line is the case with obligation. Together, the two salaries exceed the threshold at which the 23% rate begins, but each employer separately retains primarily 13%. The difference of 17,000 lek per month is paid by the employee himself until March 31 of the following year.
Full-time work plus part-time work
A financier earns 70,000 lek per month at the main employer and 40,000 lek at an accounting office. He submits the declaration to the accounting office. There, the 50,000-lekë deduction covers the entire salary and the tax comes out to zero, while the main employer is taxed at progressive rates without any deduction. The correct result is obtained in the annual calculation. To test your variants, use Pay calculator.
Income from wages, business, and investments combined
The last example takes a family with three children, aged 13, 15, and 19. Husband A works as a programmer earning 230,000 lek per month, or 2,760,000 lek per year. Wife B has a trading business with a 3,250,000 lek profit and receives 25,000 lek in dividends, while A also receives 20,000 lek in deposit interest.
For salary A, a monthly deduction of 30,000 lek is applied, i.e., 360,000 lek per year. The base becomes 2,400,000 lek and the annual tax comes to 348,000 lek under the two rates of 13% and 23%. The deduction for two children under 18, 96,000 lek, is claimed by B, because they have the higher income. Her taxable base becomes 2,794,000 lekë and her tax is 419,100 lekë at the 15% rate. Investments are taxed separately: 3,000 lekë on interest at 15% and 2,000 lekë on dividends at 8%.
Documents ready for download
You can find the statement template. here in Word, ready to be completed and signed. The user guide for The new ESIG025 payroll in e-Filing It accompanies the step-by-step delivery. Meanwhile Excel file with calculation scenarios It allows you to simulate taxes using your employees' data.
Read also: The withholding tax declaration is now pre-filled.
Frequently asked questions
Where is the personal status statement submitted?
To the employer you choose, who keeps it in the employee's file and applies it to the payroll. It may be submitted to a maximum of one employer for the same period.
Do the veteran employees have to fill it out as well?
Yes, as of this moment. The declaration remains valid until the employee's circumstances change.
What happens if I work for two employers?
Only one applies the deductions—the one to which you submitted your declaration. The other taxes the gross salary, and the difference is settled through the annual declaration, either by payment or refund.
Will I pay more tax under the new law?
No. The amount of payroll tax has not changed since December 2024. Only the way deductions are reported and claimed has changed.
Who is exempt from the personal status declaration?
Self-employed individuals. They receive their personal deductions through their annual tax return, not through payroll.
Until when is the additional obligation from dual employment payable?
By March 31 of the following year, after filing the annual income tax return.