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.<\/p>\n\n\n\n
The Albanian Government has now approved Decision No. 141, dated March 6, 2026<\/a>, 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.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n <\/p>\n\n\n\n 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.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n Read also: Minimum Wage Increase in Albania \u2014 50,000 ALL (January 2026)<\/a><\/p>\n\n\n\n Your business is entitled to compensation if it meets all the following conditions simultaneously.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n Businesses with only one employee registered on the payroll are outside of this scheme. Decision No. 141\/2026<\/a> specifies it explicitly: the subject must not have \u201cone employee in total registered on the payroll.\u201d If you have two or more registered employees, this limitation does not affect you.<\/p>\n\n\n\n There is no sectoral limitation. The compensation applies to all types of economic activity, according to the Albanian nomenclature of economic activities.<\/p>\n\n\n\n Monthly compensation for each employee = 16.7% \u00d7 (50,000 ALL \u2212 September 2025 gross salary)<\/p>\n<\/blockquote>\n\n\n\n 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.<\/p>\n\n\n\n Five employees with a gross salary of 44,000 ALL in September 2025.<\/p>\n\n\n\n The difference with the new minimum wage: 50,000 \u2212 44,000 = 6,000 ALL per employee. Monthly compensation for each employee: 16.7% \u00d7 6,000 = 1,002 ALL. Total monthly compensation for five employees: 5,010 ALL. Total compensation for the period January\u2013September 2026 (9 months): 45,090 ALL.<\/p>\n\n\n\n The table below shows how the compensation changes according to the employee's initial salary.<\/p>\n\n\n\n If during the period of January\u2013September 2026 your total number of employees has fallen below the number of those with a salary of 40,000\u201349,999 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.<\/p>\n\n\n\n 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\u2013September 2026, which means you can also apply for past months within the same deadline.<\/p>\n\n\n\n October 31, 2026, is the sole and final deadline. After this date, requests will not be accepted.<\/p>\n<\/blockquote>\n\n\n\n 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\u2019s bank account.<\/p>\n\n\n\n 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.<\/p>\n\n\n\nWhat This Decision Covers (And What It Doesn\u2019t)<\/h2>\n\n\n\n
Who Is Eligible to Apply?<\/h2>\n\n\n\n
Basic Criteria<\/h3>\n\n\n\n
Limitation by Number of Employees<\/h3>\n\n\n\n
Limitation by Sector<\/h3>\n\n\n\n
What Is the Amount and How Is It Calculated<\/h2>\n\n\n\n
The Calculation Formula<\/h3>\n\n\n\n
\n
Example with Real Numbers<\/h3>\n\n\n\n
September 2025 Gross Salary<\/th> Difference<\/th> Monthly Compensation per Employee<\/th><\/tr><\/thead> 40,000 ALL<\/td> 10,000 ALL<\/td> 1,670 ALL<\/td><\/tr> 43,000 ALL<\/td> 7,000 ALL<\/td> 1,169 ALL<\/td><\/tr> 46,000 ALL<\/td> 4,000 ALL<\/td> 668 ALL<\/td><\/tr> 49,000 ALL<\/td> 1,000 ALL<\/td> 167 ALL<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n If You Have Reduced Staff During 2026<\/h3>\n\n\n\n
When and How to Apply<\/h2>\n\n\n\n
Deadline and Method of Application<\/h3>\n\n\n\n
\n
Who Administers It and When It Is Paid<\/h3>\n\n\n\n
How Verification Works<\/h3>\n\n\n\n