Decision of December 19, 2025
Starting from January 2026, the basic monthly minimum wage at a national level, mandatory for every employer (legal or natural person, local or foreign), is 50,000 ALL (increased from 40,000 ALL).
This minimum wage corresponds to 174 working hours per month (normal monthly hours) and is equal to 287.3 ALL 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 after 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 Decision No. 113, dated 1.3.2023, of the Council of Ministers, "On determining the national minimum wage," is repealed.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 to the current level of 40,000 ALL, an employee on minimum wage will receive 10,000 ALL more in their monthly gross salary—a 25% increase. Most of this increase is expected to be reflected in the employee's net salary, as personal income tax for this wage level is either exempt or minimal (currently, salaries up to approximately 50,000 ALL per month are exempt from tax).
Concrete Example:
An employee with a minimum wage of 40,000 ALL in December 2025 received ~40,000 ALL gross (with zero income tax) and paid approximately 4,480 ALL in personal contributions (9.5% social security + 1.7% health insurance). With the new wage of 50,000 ALL, they will pay approximately 5,600 ALL in personal contributions—an increase of 1,120 ALL—while the rest of the increase is net profit. Their net salary increases by approximately 8,880 ALL per month in this scenario.
Additional Costs for Employers
For employers, the increase means higher costs for social and health insurance contributions. For every employee on minimum wage, the employer's contributions will increase by approximately 1,670 ALL per month (15% social security + 1.7% health insurance on the 10,000 ALL difference).
Effects on Social and Health Contributions (Minimum vs. Maximum Wage)
According to current legislation, the maximum monthly wage used for calculating contributions is indexed at the same rate and time as the minimum wage. Therefore, with the 10,000 ALL increase in minimum wage, the maximum wage for social contributions also increases by 10,000 ALL. Consequently, the maximum monthly wage for social security is expected to go from 176,416 ALL to 186,416 ALL.
For the purpose of calculating mandatory contributions:
Mandatory:
Social Security (Pension)
Gross monthly salaries for employees will be considered no less than the minimum wage (50,000 ALL) and up to 186,416 ALL. Salaries below 50,000 ALL will be adjusted to the minimum level for calculation, while the portion above 186,416 ALL is not subject to contribution (the "ceiling"). For the self-employed, the monthly contribution base will also be between 50,000 ALL and 186,416 ALL. For unpaid family workers, the monthly base will be the minimum of 50,000 ALL.
Health Insurance
For employees, the monthly wage is considered from the minimum of 50,000 ALL up to the actual gross salary (there is no maximum ceiling for health insurance). For the self-employed and unpaid family workers, the health insurance base is equal to double the minimum wage, which after the increase is 100,000 ALL per month.
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 ALL per month and did not change during these years. The last increase had occurred in July 2013, when the minimum wage was set at 22,000 ALL per month.
2017
The minimum wage increased to 24,000 ALL per month (from 22,000 ALL as it was previously). This was the first change after approximately 3 years. The decision for the increase entered into force during 2017, after being approved in May 2017, despite opposition from unions that requested an increase up to 26,000 ALL.
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 respective DCM that replaced the previous minimum wage of 24,000 ALL.
2021
The minimum wage increased to 30,000 ALL per month. This increase (of 4,000 ALL, or 15%) entered into force on January 1, 2021, based on the DCM of December 2020. This was one of the highest single increases historically and came as part of the government's commitments to increasing well-being following the effects of the pandemic.
2022
The minimum wage underwent two increases within the year 2022, a development that was unprecedented until then. First, from April 2022, the minimum wage increased from 30,000 to 32,000 ALLThen, only five months later (at the end of summer 2022), the government decided on another increase, bringing the minimum wage to 34,000 ALL 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
Paga minimale pati sërish një rritje të konsiderueshme. Duke nisur nga 1 prilli 2023The minimum wage saw another significant increase. Starting from April 1, 2023, it increased by 6,000 ALL (about 17.6%) – from 34,000 ALL it became 40,000 ALL per month. This was the largest nominal increase of the minimum wage ever in Albania (with 6,000 ALL at once) and directly affected about 200,000 employees. During the years 2024–2025, the minimum wage remained unchanged at the level of 40,000 ALL, while inflation and other economic factors somewhat reduced the purchasing power of this wage.
2026
With the government's latest decision, the minimum wage will increase to 50,000 ALL per month, starting from January 2026. This marks a 25% increase compared to the current level and is a continuation of the policy to bring the minimum wage above 500 euros per month. This step is expected to positively impact the standard of living for over 300,000 employees in the public and private sectors and aims to encourage the reduction of 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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