Salary Calculator Albania
A salary calculator for Albania helps you estimate net take-home pay from a gross salary by accounting for mandatory social and health contributions and personal income tax rules commonly used in payroll. This page focuses on employment payroll (employee + employer side) and shows the exact steps to go from gross to net in Albanian lek (ALL).
What You Enter
- Gross monthly salary (ALL)
- Pay frequency (monthly is standard for payroll calculations)
- Whether your employer applies the salary deduction (via personal status declaration rules)
- Any taxable additions (bonuses, taxable benefits in kind, taxable allowances)
What You Get
- Employee deductions: social insurance + health insurance
- Taxable salary base for personal income tax (PIT)
- Estimated PIT (progressive rates)
- Net salary (approximate take-home)
- Total employer cost (gross + employer contributions)
Important: payroll can be affected by contribution base limits, multiple jobs, and how the salary deduction is applied. Use the formulas here for a strong estimate, then confirm with your payslip and the official sources linked at the end.
Table Of Contents
Key Terms Used In Salary Calculations
- Gross salary: the salary amount before employee deductions and PIT.
- Employee contributions: mandatory deductions withheld from the employee (social insurance + health insurance).
- Taxable salary for PIT: gross salary minus employee contributions, then reduced by a salary deduction where applicable.
- PIT (personal income tax): tax calculated on the taxable salary base using progressive rates.
- Net salary: what the employee typically receives after deductions and PIT.
- Employer cost: gross salary plus employer contributions.
Social and Health Contributions
Standard payroll rates used for employment:
| Contribution Type | Employee Rate | Employer Rate |
|---|---|---|
| Social Insurance | 9.5% | 15% |
| Health Insurance | 1.7% | 1.7% |
| Total | 11.2% | 16.7% |
Note: for social insurance, a minimum and maximum contribution base can apply. If your gross salary falls outside the contribution base range, the contribution may be calculated on the capped base rather than the full gross amount.
Salary Tax Deduction
Albanian payroll commonly uses a salary deduction that reduces the salary amount subject to PIT. The deduction amount depends on your income band and is typically applied through a personal status declaration mechanism (and applied only once per month).
| Monthly Income Band (ALL) | Monthly Deduction (ALL) | How It Helps |
|---|---|---|
| 0 – 50,000 | 50,000 | Can reduce the PIT base to zero for this band |
| 50,001 – 60,000 | 35,000 | Reduces the PIT base before applying the rate |
| Over 60,000 | 30,000 | Standard deduction for most full-time salaries |
Multiple Employers: the salary deduction is generally intended to be applied by one employer within a month. If you have more than one job, your payslips may show a different PIT outcome across employers depending on which payroll applies the deduction.
If you are unsure whether your payroll applies the deduction, check your payslip or ask your HR/payroll team (in neutral terms) which salary deduction band is used.
Personal Income Tax On Salary
After employee contributions and the salary deduction, the remaining amount is taxed using progressive rates. Payroll often applies this monthly; the same framework can be expressed annually as well.
Monthly PIT Rates Used In Payroll
| Monthly Taxable Income From Salary (ALL) | Rate |
|---|---|
| 0 – 170,000 | 13% |
| Over 170,000 | 23% |
Monthly taxable income here refers to the PIT base after subtracting employee contributions and the salary deduction, then applying any caps/rules that your payroll uses.
Annual PIT Rates (Equivalent View)
| Annual Taxable Income From Salary (ALL) | Rate |
|---|---|
| 0 – 2,040,000 | 13% |
| Over 2,040,000 | 23% |
Some payroll setups reconcile differences across the year. For consistent monthly salaries, the monthly method typically produces a close estimate for net pay.
Gross To Net Calculation Steps
- Start with gross monthly salary (ALL).
- Calculate employee contributions (typically 11.2% total):
Employee contributions = Gross × 0.112 - Compute salary after employee contributions:
Salary after contributions = Gross − Employee contributions - Choose the salary deduction band (commonly 50,000 / 35,000 / 30,000 ALL) and apply it once per month where applicable.
- Compute PIT base:
PIT base = max(0, Salary after contributions − Salary deduction) - Calculate PIT:
| PIT Base Range (Monthly) | Formula |
|---|---|
| 0 – 170,000 ALL | PIT = 13% × PIT base |
| Over 170,000 ALL | PIT = 22,100 + 23% × (PIT base − 170,000) |
- Compute net salary:
Net = Gross − Employee contributions − PIT - Optional: compute employer total cost (typically 16.7% employer contributions):
Employer contributions = Gross × 0.167
Total employer cost = Gross + Employer contributions
Worked Examples
Assumptions used in these examples: standard employee contributions (11.2%), standard employer contributions (16.7%), and the 30,000 ALL salary deduction band (typical for salaries over 60,000 ALL). Real payroll may differ if contribution bases are capped or if the salary deduction is not applied in your specific case.
All numbers are in ALL and rounded to whole lek for readability.
| Gross / Month | Employee Contributions (11.2%) | PIT Base After Deduction | PIT | Net / Month | Employer Cost |
|---|---|---|---|---|---|
| 100,000 | 11,200 | (100,000 − 11,200 − 30,000) = 58,800 | 13% × 58,800 = 7,644 | 81,156 | 100,000 + (16.7% × 100,000) = 116,700 |
| 200,000 | 22,400 | (200,000 − 22,400 − 30,000) = 147,600 | 13% × 147,600 = 19,188 | 158,412 | 200,000 + (16.7% × 200,000) = 233,400 |
| 300,000 | 33,600 | (300,000 − 33,600 − 30,000) = 236,400 | 22,100 + 23% × (236,400 − 170,000) = 37,372 | 229,028 | 300,000 + (16.7% × 300,000) = 350,100 |
Cases That Can Change The Result
- Contribution base limits: social insurance can be calculated on a capped base (minimum/maximum), changing both employee and employer contribution amounts.
- Multiple jobs in the same month: the salary deduction is typically applied only once per month, so PIT may be higher on additional salaries.
- Bonuses and taxable benefits: additional taxable pay increases the PIT base and may push part of income into the higher PIT rate.
- Annual reconciliation: if your income varies over the year, payroll can produce differences between monthly estimates and year-end totals.
Regulatory Note: salary tax and contribution rules are legal/administrative requirements and can change. Always verify the latest rates, thresholds, deduction rules, and contribution bases through official publications and your employer’s payroll documentation, and consider professional advice for your specific situation.
This page is designed for general, user-focused understanding and careful estimation, not as an official determination of tax liability.
References
- Qendra e Botimeve Zyrtare (QBZ) – Law No. 29/2023 “On Income Tax” (Official Gazette Entry) — Official legal text and amendments framework for income tax in Albania.
- Institute of Social Insurance (ISSH) – Decision No. 77 On Mandatory Social Insurance Contributions — Government publication describing mandatory social insurance contribution structure and principles.
- Eurofast – Albania Payroll Guide 2025 (PDF) — Practical payroll reference for contribution rates, PIT rates, and salary deduction bands used in payroll.
- PwC Worldwide Tax Summaries – Albania (Individual: Other Taxes) — Overview of social and health contribution rates and payroll compliance notes.
- PwC Worldwide Tax Summaries – Albania (Individual: Taxes On Personal Income) — High-level structure of personal income tax on individuals in Albania.
- University of Tirana – PRO-FACTS (Fiscal Administration Module Information) — University resource related to fiscal administration context and education.