The year 2024 starts with salary cuts both in the state and in the private sector

2024-06-12 08:21:00, Ekonomi CNA

The year 2024 starts with salary cuts both in the state and in the private

Illustrative photo, taken from Google

The year 2024 has started with salary cuts in both the state and private sectors compared to the end of 2023.

According to INSTAT, the average gross monthly salary for a salaried employee, during the first quarter of 2024, is 73,641 ALL from 75,000 ALL at the end of last year, with a decrease of almost 2%.

The decrease in salaries in the first quarter of the year is generally related to the fact that in the last quarter many companies give bonuses to employees, causing their salary to be higher in the last quarter of the year.

INSTAT clarifies that bonuses and salary supplements are a part of the average gross monthly salary for a salaried employee, which at the end of each semester significantly increase the average gross monthly salary.

Salaries in the state decreased by 3.2% in the first quarter compared to the end of the year and those in the private sector by about 1%.

However, compared to the same quarter last year, wages in the economy increased by 13.8%.

Source, INSTAT

Annual change, salaries in the state grow much faster than in the private sector

The average salary in the state in the first quarter reached 85 thousand ALL, with an increase of 14% compared to the same period a year ago. The increase in wages was led by the government's reform to equalize wages with the region. Another reason was the "encouragement" of the private sector to pay employees more.

However, the private sector has followed the state at a slower pace. The average monthly salary in the private sector in the first quarter was ALL 68.7 thousand, with a 10% increase on an annual basis.

Banks and transport pay more

According to INSTAT, during the first quarter of 2024, the economic activities that offer an average gross monthly salary, higher than the national average salary, are Financial and Insurance Activities and Information and Communication.

Source, INSTAT

Compared to the same quarter of last year, during the first quarter of 2024 the average gross salary for the activity group of Public Administration and Defense; compulsory social insurance; education; health and social work activities has the largest increase of 15.3%, while the information and communication activity group has the smallest increase of 6.9%.

During the first quarter 2024, the group-professions of "Managers, Legislators, Senior Civil Servants of the State Administration and Executive Directors" and "Specialists with higher education (professionals)", offer the highest average gross monthly salaries, compared to the average salary at the national level./ Monitor.al