The contribution compensation covers only the increase in employer contributions resulting from the minimum wage being raised to 50,000 LEK. It is calculated at a rate of 16.7 percent on the difference between the gross wage in September 2025 and the new threshold, is granted for the period from January to September 2026, and is applied on the e-Albania portal until October 31, 2026. The increased wage is nevertheless paid by the business.
This page shows what the scheme covers, who qualifies, how the amount is calculated, and what to check before applying.
Read also: Payroll and Contributions: The Complete Guide
The increase in the minimum wage created two separate costs for the employer. The scheme affects only one of them.
| Effect | Who is holding it? |
|---|---|
| Gross salary increase up to 50,000 LEK | The employer, fully |
| Employer contributions on that increase. | They are compensated at 16.7 percent. |
| Employee contributions | Not covered by the scheme |
| Payroll tax | Not covered by the scheme |
The 16.7 percent rate consists of 15 percent social security and 1.7 percent health insurance, that is, exactly the portion paid by the employer.
Read also: Contributions on gross pay and the rates in effect
The conditions must be met simultaneously, not separately.
There is no restriction by sector. The scheme applies to all economic activities.
Caution: A business that began operations after September 2025 has no calculation basis, because the entire scheme relies on that month's payroll. The same applies when the September 2025 payroll is later corrected. The version taken into account is the one that appears as valid in the tax system.
The formula is the same for every employee and for every month of the period.
The monthly compensation for the employee is equal to 16.7 percent of the difference between 50,000 LEK and that employee's gross salary in September 2025.
The lower the wage was in September 2025, the larger the difference and the higher the compensation.
| Gross salary, September 2025 | Difference | Monthly compensation for employees |
|---|---|---|
| 40,000 LEK | 10,000 LEK | 1,670 LEK |
| 43,000 LEK | 7,000 LEK | 1,169 LEK |
| 46,000 LEK | 4,000 LEK | 668 LEK |
| 49,000 LEK | One thousand Lek | 167 LEK |
A business with five employees, each earning a gross salary of 44,000 LEK in September 2025, has a difference of 6,000 LEK for each. The monthly compensation per employee is 1,002 LEK, so 5,010 LEK per month for all five. Over the nine-month period, the total amounts to 45,090 LEK.
If during the period from January through September 2026 the total number of employees falls below the number of those with salaries between 40,000 and 49,999 LEK that you had in September 2025, compensation is calculated based on the average amount per employee multiplied by the current total number. The reduction lowers the amount, but it does not eliminate the entitlement.
Read also: Salary calculator: from gross to net and total cost.
The application is submitted through the e-Albania portal and is administered by the relevant regional directorate of the National Employment and Skills Agency, based on the address where the main part of the activity takes place.
| Element | Rule |
|---|---|
| Coverage period | January to September 2026 |
| Opening of applications | April 1, 2026 |
| Deadline | October 31, 2026, no extensions |
| How | e-Albania Portal |
| Payment | Each month, within the first ten days of the following month. |
Applying within the deadline also covers the previous months of the period, so a business that applies in September also gets January.
Read also: The complete step-by-step application guide
The e-Albania system automatically cross-checks data with the tax administration, so errors are flagged immediately rather than after payment.
Read also: Proper reporting of employees and wages
Only the employer's contributions, at a rate of 16.7 percent, on the difference between 50,000 LEK and the employee's gross salary in September 2025.
No. The employer fully covers the increased wage. The scheme only affects the contributions on that increase.
January through September 2026, with monthly payments made within the first ten days of the following month.
Until October 31, 2026. Applications have been open since April 1, 2026, and the deadline will not be extended.
No. Entities with only one employee registered on the payroll have been excluded from the scheme.
No. The entire calculation is based on the September 2025 payroll, and without it there is no basis for calculation.
No. The scheme applies to all economic activities.
The decision does not address this aspect, so the tax treatment is verified on a case-by-case basis with the accountant.
