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Minimum wage increase/ Law for the public and private sectors enters into force

2026-01-03 18:31:00, Aktualitet CNA

As of January 1, 2026, the law on the minimum wage in the country, which will be 50 thousand lek, has entered into force. This government decision affects 307 thousand 850 registered employees in the public and private sectors.

According to the government's decision for the first 9 months of implementing the minimum wage, the increased cost of social and health insurance will not be paid by business but by the state.

Therefore, a fund of 1 billion lek has been designated in the state budget to compensate for employer contributions as a result of the increase in the minimum wage.

Increasing the minimum wage helps reduce informality in the labor market and strengthen respect for legal contracts.

DECISION ON DETERMINING THE MINIMUM WAGE AT THE COUNTRY LEVEL

In accordance with 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 powers to determine salaries, other financial treatments and benefits of employees in public administration institutions, as well as the minimum basic salary at the national level”, as amended, upon the proposal of the Minister of Economy and Innovation, the Council of Ministers

DECIDED:

1. The minimum basic monthly salary for employees nationwide, which is mandatory to be applied by every legal or natural person, domestic or foreign, shall be 50,000 (fifty thousand) lekë.

2. The minimum monthly basic wage is paid for 174 (one hundred and seventy-four) hours of work per month, performed during normal working hours.

3. The minimum hourly basic wage shall be 287.3 (two hundred eighty-seven point three) lek.

4. Permanent allowances are given on top of the basic salary.

5. Decision no. 113, dated 1.3.2023, of the Council of Ministers, “On the determination of the minimum wage nationwide”, is repealed.

This decision enters into force upon publication in the "Official Gazette" and begins its financial effects from January 1, 2026./ CNA