The General Directorate of Taxes informs taxpayers that at the Council of Ministers meeting on December 26, 2018, the decision to set the national minimum wage at 26,000 lekë was approved.
Based on Article 10 of Law No. 7703, dated May 11, 1993 “For Social Security in the Republic of Albania,” as amended, from the date the decision enters into force, the social security contribution is calculated and paid on the gross wage within the limits of the national minimum wage.
The maximum wage for social contribution purposes is indexed at the same time and to the same extent as the minimum wage is indexed at the national level. The minimum wage has increased by about 8.3% (from 24,000 to 26,000 lek), which means that the maximum wage will also increase by about 8.3%, rising to 114,670 lek from the previous 105,850 lek, an increase of 8,820 lek.
The monthly gross wage, for the purpose of calculating social security contributions, will be as follows:
- not less than the monthly minimum wage, equivalent to 26,000 lekë and up to 114,670 lekë, for employed persons.
- not less than the monthly minimum wage, equivalent to 26,000 lekë, and, as defined by the individual, up to 114,670 lekë for self-employed persons.
- equal to the monthly minimum wage of 26,000 lekë, for the unpaid family members with whom the self-employed person works and legally co-resides.
The national minimum wage of 26,000 lekë and above also serves to calculate and pay mandatory health insurance contributions.
Social security contributions are calculated and paid on gross wages up to the national minimum wage threshold, and the maximum wage is indexed at the same time and to the same extent as the national minimum wage.
Notice published on the official DPT website https://www.tatime.gov.al/d/8/45/0/844/mbi-percaktimin-e-pages-minimale-ne-shkalle-vendi