Increase of the Minimum Wage in Albania from 1 January 2026: What Changes for Employers and Employees

 

 

 

As of 1 January 2026, the minimum wage in Albania will officially increase to ALL 50,000 per month, pursuant to Decision No. 776, dated 19.12.2025 of the Council of Ministers

 

. This change has direct implications for employers, employees, and the calculation of social and health insurance contributions.

Minimum wage and working hours

The decision establishes that the monthly minimum base wage of ALL 50,000 applies to 174 working hours per month, performed during normal working time. On an hourly basis, the minimum wage is set at ALL 287.3 per hour. Any permanent allowances or supplements are calculated on top of this base wage

 

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Increase of the maximum salary for contribution purposes

Alongside the minimum wage, the maximum salary used for calculating social insurance contributions is also increased. From 1 January 2026, this ceiling rises to ALL 186,416 per month, compared to ALL 176,416 valid until 31 December 2025. This represents an increase of ALL 10,000, equal to the increase in the minimum wage

 

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Impact on employees and the self-employed

For the purposes of social insurance contributions:

  • Employees must be declared with a gross monthly salary of no less than ALL 50,000 and no more than ALL 186,416.

  • Self-employed individuals must declare a salary not lower than ALL 50,000 and up to ALL 186,416, according to their own determination.

  • Unpaid family workers are calculated on the basis of the minimum wage of ALL 50,000

     

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Health insurance contributions

The new minimum wage also serves as the basis for mandatory health insurance contributions:

  • For employees: not less than ALL 50,000 and up to the declared gross salary.

  • For self-employed individuals and unpaid family workers: twice the minimum wage, i.e. ALL 100,000

     

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What taxpayers need to do

The Tax Administration calls on all taxpayers to:

  • Update payroll declarations to reflect the new minimum and maximum wage levels.

  • Declare salaries and related contributions accurately and on time.

  • Ensure full compliance with the legislation, safeguarding social protection, health benefits, and pension rights

     

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The increase of the minimum wage to ALL 50,000 represents an important step toward improving employees’ income levels and strengthening social protection. At the same time, it requires increased attention from employers and self-employed individuals to correctly implement the new legal obligations effective from 1 January 2026.