Effective as of 1 January 2019
Starting from 1 January 2019, the minimum national salary in Albania is ALL 26,000 per month. This level of the minimum salary is taken into account for the purposes of social security contributions and health insurance calculations.
Social security contributions and health insurance will not be calculated on a salary below this level. Based on Law no. 7703 dated 11 March 1993 (as amended) on the Social Security Contributions in Albania, the maximum salary for the purposes of calculation of social security contributions is indexed at the same time and in the same scale with the national minimum salary. Therefore, based on this Law, the new level of maximum salary is expected to be ALL 114,671. More guidance on the new level of the maximum salary can be found in the website of the Albanian Tax Authorities.
Previously, the minimum salary for the purposes of social security contributions and health insurance calculations amounted to ALL 24,000, while the cap level for social security contributions stood at ALL 105,850 per month.
Health insurance will continue to be calculated on an employee’s monthly gross salary. However, the health insurance contributions are not to be calculated for a salary below the minimum threshold of ALL 26,000 per month.
Entry into force
Decision No. 809 dated 26 December 2018 of the Albanian Council of Ministers on the National Minimum Salary is published in the Official Gazette No. 189 dated 28 December 2018. The Decision entered into force after its publication and is effective from 1 January 2019.
© 2019 KPMG Albania Shpk, an Albanian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.