Skip to content

Minimum Wage and Salary Guide in Albania

minimum-wage-and-salary-guide-in-albania

Minimum Wage And Salary Guide In Albania

Whether you are evaluating a job offer, budgeting payroll, or simply trying to understand how pay works, this guide brings together Albania’s official minimum wage rules, salary benchmarks, and the main payroll deductions in one practical page.

Key Numbers You Will See On This Page:

Minimum Wage: 40,000 ALL / month
Average Wage (INSTAT): 83,906 ALL / month (Q2 2025)

Table Of Contents

Minimum Wage In Albania

Albania sets a national minimum wage that applies to employment relationships covered by payroll reporting. For most readers, the practical takeaway is simple: the minimum wage is a floor for monthly gross pay in standard employment arrangements, and it is also used as a baseline for certain contribution calculations.

ItemAmountNotes
Current National Minimum Wage40,000 ALL / monthSet by Council of Ministers decision (see source link in the Sources section).
Minimum Wage From 1 January 202650,000 ALL / monthGovernment decision also states an hourly minimum of 287.3 ALL.

Practical Note:
If you are comparing offers, always confirm whether the figure you see is gross or net.
In Albania, payroll deductions typically include social and health insurance contributions and employment income tax.

How Salary Is Structured

In everyday payroll language, you will usually see these terms:

  • Gross Salary: The contractual pay amount before payroll deductions.
  • Net Salary: The amount you receive after employee contributions and employment income tax withholding.
  • Base Pay And Add-Ons: Some roles include bonuses, shift premiums, meal or transport allowances, or performance components.

What To Ask For
when a job offer feels unclear:

  1. Is the salary gross or net?
  2. Do bonuses or allowances apply every month, or only under certain conditions?
  3. Will you receive a monthly payslip showing deductions and totals?

For employers and HR teams, consistency matters: make sure the employment contract, internal policy, and payroll reporting all describe the pay components in the same way. A clear structure helps employees understand their compensation and helps payroll stay smooth.

Average Wages And Benchmarks

If you want a reliable benchmark beyond the minimum wage, the best place to start is INSTAT, Albania’s national statistical institute. INSTAT publishes quarterly wage statistics and an official national average based on administrative payroll records.

Official Average Wage

INSTAT reports an average gross monthly wage of
83,906 ALL
(Q2 2025).

That number is useful for general comparison, but individual salaries often vary by role, experience, sector, and responsibilities.

How To Use Benchmarks Well

  • Compare gross-to-gross (avoid mixing gross and net figures).
  • Check whether the role is closer to an entry-level, mid-level, or senior profile.
  • Ask for clarity on recurring allowances (transport, meals, shifts) because they can change take-home pay.

Reference PointAmount (Gross)What It Is Good For
National Minimum Wage40,000 ALL / monthA baseline floor for standard employment pay.
INSTAT Average Wage (Q2 2025)83,906 ALL / monthA national comparison point when evaluating typical offers.

INSTAT publications also highlight that higher-skilled occupational groups (for example, managers and professional roles) tend to record higher average wages than the national average, which is a helpful reminder to compare salaries within the same role category, not only at the national level.

Income Tax On Employment

Employment income in Albania is taxed using progressive rates set in the Income Tax Law. For employees, the law states:

Annual Taxable BaseRateReading Tip
0 – 2,040,000 ALL13%Often discussed as roughly up to 170,000 ALL per month when thinking in monthly terms.
Above 2,040,000 ALL23%Applies progressively above the threshold in payroll calculations.

Important:
Your final withholding can differ based on how taxable income is computed and whether you are eligible for deductions or personal-status adjustments under the law. If you need certainty for your own situation, request an employer-provided payslip simulation or consult a licensed payroll professional.

Social And Health Insurance Contributions

Payroll contributions typically include social insurance and health insurance. For standard employment (including employees working 87 hours per month or more), the official decision on contributions provides these headline rates:

ContributionTotalEmployerEmployee
Social Insurance24.5%15.0%9.5%
Health Insurance3.4%1.7%1.7%

The same decision also outlines rates for certain part-time cases (such as employment below 87 hours per month) and explains that contribution calculations use a legally defined minimum base and, for social insurance, a maximum base specified in the decision.

Good Habit:
When comparing job offers, ask for the gross salary and a clear breakdown of employee deductions. It makes the net amount much easier to understand and avoids surprises.

Reading A Job Offer In Albania

A salary offer can look straightforward and still hide important details. Use this short checklist to keep the conversation clear and professional.

What To Confirm

  • Gross monthly pay stated in ALL.
  • Pay schedule (monthly, bi-weekly, or other).
  • Bonus logic (performance, attendance, seasonal).
  • Overtime handling (rate and approval process).
  • Benefits that matter financially (meal support, transport, phone, insurance add-ons).

How To Compare Two Offers Fairly

  1. Start with gross-to-gross comparison.
  2. List fixed benefits as monthly values (if possible).
  3. Separate guaranteed pay from variable pay.
  4. Request a sample payslip if you want a net estimate that matches payroll rules.

If you are hiring, a clean offer letter that spells out gross salary, allowances, and the payroll deduction categories helps build trust and reduces onboarding friction. If you are an employee, asking these questions is normal and professional.

Common Questions

Is Minimum Wage In Albania Set Monthly Or Hourly?

The minimum wage is commonly referenced as a monthly amount. Some official decisions also provide an hourly minimum. For example, the decision setting the minimum wage at 50,000 ALL from 1 January 2026 states an hourly minimum of 287.3 ALL.

Does The Average Wage Mean Most People Earn That Amount?

Not necessarily. An average is a helpful benchmark, but real salaries vary by occupation, experience, and sector. That is why comparing roles within the same category (job family and seniority) is usually more meaningful than comparing only to the national average.

What Should I Use For Budgeting: Gross Or Net?

Use gross for contract comparisons and employer budgeting, and use net for personal monthly spending plans. If you only have gross, ask for a payslip-style breakdown of deductions so you can estimate net more reliably.

Employment, payroll, and immigration rules can change over time. If you are moving to Albania for work or planning to hire internationally, always verify the latest requirements for work authorization, residence permits, and employment contract rules through official channels or qualified professionals. This page is designed for general understanding and does not replace official guidance.

Sources